An assessment of environmental degradation’s economic impact in Nigeria: Evidence from Lagos State (2000–2020)
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Background of the Study :
Environmental degradation poses significant challenges to sustainable economic development, particularly in densely populated and industrialized regions like Lagos State. Rapid urbanization, industrial emissions, poor waste management, and deforestation have collectively degraded natural resources and diminished environmental quality. Such deterioration directly impacts public health, labor productivity, and overall economic growth (Nwankwo, 2023). In Lagos State, the economic repercussions are multifaceted—ranging from increased healthcare expenditures to reduced investor confidence and lower productivity in affected sectors. The urban environment, which serves as the economic engine of Nigeria, is increasingly burdened by the cost of environmental degradation. Recent studies highlight that the economic costs associated with environmental neglect are not just confined to immediate health impacts but also include long-term effects on infrastructural development and workforce efficiency (Ajayi, 2024). This research examines the nexus between environmental degradation and economic performance in Lagos State. By analyzing fiscal data, public health records, and infrastructural investments, the study aims to quantify the economic impact of environmental degradation and provide recommendations for sustainable management practices (Babatunde, 2025).
Statement of the Problem
Although Lagos State has experienced robust economic growth, environmental degradation continues to undermine long-term sustainability. Pollution, deforestation, and poor waste management have led to increased public health costs, reduced labor productivity, and a decline in investor confidence. The lack of comprehensive environmental policies and weak enforcement mechanisms further exacerbate these issues, creating a disconnect between economic growth and environmental sustainability (Eze, 2023). Such challenges pose significant risks to future development, as the degradation of natural resources and the resulting economic costs can stifle growth and increase social inequality. This study seeks to identify and assess the economic costs of environmental degradation, ultimately proposing strategies to integrate sustainable practices into urban economic planning (Faleye, 2024).
Objectives of the Study:
1. To assess the economic impact of environmental degradation in Lagos State.
2. To analyze the relationship between environmental quality and economic performance.
3. To propose sustainable policy interventions to mitigate environmental damage.
Research Questions:
1. How does environmental degradation affect economic productivity in Lagos State?
2. What are the key economic costs associated with environmental neglect?
3. Which policy measures can effectively balance economic growth and environmental preservation?
Research Hypotheses:
1. H1: Environmental degradation has a negative impact on economic productivity.
2. H2: There is a significant relationship between environmental quality and investor confidence.
3. H3: Sustainable policy interventions can mitigate the economic impact of environmental degradation.
Significance of the Study (100 words):
This study elucidates the economic costs of environmental degradation in Lagos State, offering critical insights for policymakers and industry stakeholders. By linking environmental health to economic performance, the research provides a framework for developing sustainable strategies that enhance both ecological and economic outcomes. The findings will be instrumental in guiding policy reforms aimed at reducing environmental damage and promoting long-term economic resilience (Ogunleye, 2023).
Scope and Limitations of the Study:
The study is limited to assessing the economic impact of environmental degradation in Lagos State, focusing exclusively on the relationship between environmental quality and economic performance.
Definitions of Terms:
1. Environmental Degradation: The deterioration of the natural environment due to human activities.
2. Economic Impact: The effect of environmental conditions on economic performance and productivity.
3. Sustainable Practices: Strategies and actions aimed at balancing economic growth with environmental preservation.
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