The recent joint report by Circle Economy, the International Labour Organisation (ILO) and the World Bank Group offers a clear picture of what is possible and, by extension, a sobering reminder of the high cost of inaction. It lays bare both the promise of the circular economy and the urgent responsibility of governments, particularly in the Global South, to ensure that sustainability does not come at the expense of human dignity.

If the government truly performed its role with sincerity and purpose, Nigeria would look markedly different today. Policies would not merely exist on paper; they would translate into decent jobs, protected livelihoods and inclusive growth.

The report reveals that between 121 and 142 million people worldwide are employed in the circular economy, primarily in developing countries. These workers are engaged in repair, recycling, waste management, second-hand trade and related services, as well as activities that quietly keep cities running, reduce pressure on natural resources and mitigate environmental harm.

Yet more than half of these workers operate in the informal economy, without regulation, social protection or basic labour rights. Nigeria fits squarely into this pattern, with informal recyclers, waste pickers and repair artisans forming the backbone of urban sustainability while remaining among the most vulnerable workers in the country.

In a nation grappling with chronic unemployment, youth restiveness, deepening poverty and worsening environmental degradation, the circular economy should be a central pillar of national development. Properly harnessed, it could generate millions of jobs, stimulate local manufacturing, reduce waste imports, strengthen value chains, and promote innovation at the grassroots level.

It also offers a pathway to inclusive growth, particularly for women and young people, who already make up a significant share of circular economy workers. That this potential remains largely untapped is not due to lack of opportunity, but to weak policy execution, fragmented governance and a persistent failure to put people at the centre of reform.

The challenges confronting Nigeria in this regard are well known. First is the problem of informality. Most circular economy workers, waste pickers, recyclers, scrap dealers, and repair technicians operate outside the reach of formal regulation. They work in unsafe conditions, earn unstable and often exploitative wages, and lack access to healthcare, pensions or injury compensation. While their labour is essential to environmental sustainability, they are treated as expendable rather than indispensable.

Second is policy incoherence. Environmental and climate policies often prioritise emissions reduction, waste diversion and resource efficiency, while paying little attention to labour standards, job quality and social protection. This disconnect creates a situation where “green” policies coexist with deeply unsustainable labour practices. Yet, sustainability, stripped of its social dimension, becomes hollow and unjust.

Third is limited access to finance, skills and technology. Small and medium enterprises involved in recycling, repair and sustainable manufacturing struggle to grow due to high interest rates, lack of credit guarantees, weak infrastructure and limited technical capacity. Many operate at a survival level, unable to invest in better equipment, comply with standards or move up the value chain. Without deliberate support, the circular economy risks becoming a trap of low productivity and low wages rather than a ladder to prosperity.

Fourth is the absence of reliable data. As the report itself acknowledges, significant data gaps persist, particularly regarding informal workers and agricultural-related circular activities. Without credible local and national data, policymakers are flying blind. Planning, monitoring and evaluation become guesswork, and well-intentioned interventions often miss their mark.

These challenges, however, are not insurmountable. What is required are political will, policy coherence and coordinated action, in line with the dictates of the report. The government must begin by formally recognising circular economy workers as a vital part of the national workforce. Recognition is not symbolic; it should translate into action. Informal workers should be gradually integrated into social protection systems through flexible, contributory schemes that reflect their income realities. Health insurance, basic pensions and enforceable occupational safety standards are not luxuries; they are minimum requirements for decent work.

Public procurement offers another powerful lever. The government is one of the largest consumers in the economy. By deliberately prioritising recycled materials, repair services, reusable products and sustainable construction practices in public spending, it can create stable demand, support local enterprises and improve job quality. This is how policy moves from rhetoric to impact.

Access to finance must also be expanded. Targeted credit facilities, loan guarantees and blended finance mechanisms developed in partnership with development finance institutions can help circular enterprises scale up and formalise. Special attention should be given to youth- and women-led businesses, which often face the steepest barriers despite their proven potential.

Education and skills development are equally critical. Inclusive training programmes that combine technical skills, digital literacy and entrepreneurship can help workers transition from low-value activities to higher-productivity roles. Polytechnics, technical colleges and vocational centres should be repositioned as hubs for circular economy skills, aligned with industry needs. At the same time, labour inspection and enforcement need to be strengthened to ensure that “green jobs” do not become another excuse for cheap, unsafe and precarious labour.

Finally, the government must invest seriously in data systems. Strengthening national and local data collection on circular economy activities and employment will allow policymakers to track progress, identify gaps and design interventions that actually work. Without data, accountability is impossible; without accountability, reform remains elusive.

The report is not a theoretical exercise; it is a practical roadmap. What remains is for the government to do the needful. A just transition to a circular economy cannot be built on neglect, informality and exploitation.

It must be anchored on decent work, social protection and inclusion. If the government acts with sincerity and commitment, Nigeria can turn what is currently an economy of survival into one of dignity, opportunity and shared prosperity.