In the bustling food and beverage sector of Southwestern Nigeria, small and medium-scale enterprises (SMEs) are a driving force behind economic growth. However, their environmental impact is a growing concern, with compliance to regulations often overlooked. A recent study published in the Global Journal of Environmental Science & Management (Global Journal of Environmental Science & Sustainability) sheds light on this issue, offering insights that could reshape enforcement policies and commercial practices in the region.
Led by Babatunde Adetunji Aodu of the National Center for Technology Management under the Federal Ministry of Innovation, Science and Technology in Abuja, the study surveyed 256 SMEs across three states. The findings reveal a mixed picture of compliance with environmental regulations. “About 15% of the SMEs were not in compliance with solid waste management regulations, while 15.3% have no air pollution measures,” Aodu notes. Perhaps most concerning, 15.8% of the firms did not treat wastewater discharge from production processes, and 24% failed to conduct Environmental Impact Assessments (EIAs).
The study also explored the frequency of compliance, using a 5-point Likert scale. Results showed that SMEs sometimes complied with continuous monitoring and reporting of environmental performance (3.39), adhered to sustainable supply chain practices (3.38), and involved stakeholders in their environmental initiatives (3.38). Interestingly, small-sized firms were found to be more compliant than medium-sized businesses in several areas, including waste management planning, integrating sustainability into operations, conducting environmental audits, and responding to community complaints.
So, what does this mean for the future of the food and beverage sector in Southwestern Nigeria? Aodu emphasizes the need for more regular and stringent enforcement policy mechanisms to curb hazardous activities. “This is not just about protecting the environment,” he says. “It’s about ensuring the long-term sustainability of these businesses and the communities they operate in.”
The study’s findings could have significant implications for the energy sector as well. As SMEs strive to comply with environmental regulations, there may be increased demand for energy-efficient technologies and renewable energy sources. This could open up new commercial opportunities for energy providers and technology innovators.
Moreover, the study highlights the importance of stakeholder involvement in environmental initiatives. By engaging with local communities and other stakeholders, SMEs can build trust, improve their environmental performance, and enhance their reputation. This, in turn, could lead to increased customer loyalty and market share.
In conclusion, this research underscores the need for a more nuanced understanding of SMEs’ environmental compliance. By recognizing the unique challenges and opportunities faced by small and medium-sized businesses, policymakers and industry leaders can work together to create a more sustainable and prosperous future for all. As Aodu puts it, “It’s not just about ticking boxes. It’s about making a real difference.”