Financing mechanism for solid waste management in Anambra, Nigeria: analyses of emerging challenges and implication for circular economy.

Abstract

Waste management is a critical public service provided by municipalities around the world. It is often problematic, inefficient, and abysmally performed in developing countries. Among the problems associated with waste management in these global locations is the issue of finance. Finance is required for both capital investment and operational costs. Methods of waste management financing differ from place to place due to cultural, political, and socio-economic peculiarities. Understanding these conditionalities is necessary to be able to proffer sustainable solutions. Despite these facts, there is limited comprehensive and relevant academic literature on waste management financing mechanisms in developing countries both in the past and recent times. This work addresses a significant gap in the literature by studying the mechanism for waste management financing in developing countries using Anambra State, Nigeria, as a case study. The current study further investigated the associated challenges and opportunities and made critical discussions on the implications on the circular economy. User fees and subsidies from the government are the major financing sources. The absence of cost-revenue model analysis, economic and institutional volatility, the unwillingness of the service users to pay fees, and lack of transparency are major challenges to the financial sustainability of waste management in the studied context. The creation of incentives for behavioral changes, adoption of neo-liberal policies, and formal integration of informal waste pickers are factors that can minimize the cost of waste management services while promoting a circular economy.