The Financial and Societal Benefits of Legalising Medical Cannabis in Nigeria: A Comparative Analysis

Introduction

The legalisation of medical cannabis has sparked global conversations about its potential to
drive economic growth, improve public health outcomes, and reduce the burden on judicial
systems. As Nigeria seeks to diversify its economy and explore non-oil revenue streams, the
legalisation and regulation of medical cannabis presents a compelling opportunity. This
essay explores the financial and societal benefits of legalising medical cannabis in Nigeria,
using comparative analyses of countries where it has been legalised, including the United
States, the United Kingdom, Canada, and the Netherlands. It also highlights the potential of
cannabidiol (CBD) oil as an export commodity, positioning Nigeria as a significant player in
the global medical cannabis market.

Understanding Medical Cannabis and Its Global Context

Medical cannabis refers to the use of cannabis and its chemical components, such as
cannabinoids (e.g., THC and CBD), for therapeutic purposes. Globally, countries like
Canada, the United States (in certain states), Germany, and South Africa have legalized
medical cannabis, recognizing its potential to address chronic pain, epilepsy, cancer-related
symptoms, and mental health conditions.

In Africa, countries such as Lesotho, Zimbabwe, and South Africa have legalised cannabis
cultivation for medical and export purposes. These nations have demonstrated the potential
of cannabis as a high-revenue crop in global markets, particularly as demand for medical
cannabis continues to rise.

Section 1: The Global Landscape of Medical Cannabis Legalisation

1.1. The Evolution of Medical Cannabis

Medical cannabis has gained acceptance worldwide due to its therapeutic benefits in managing conditions such as chronic pain, epilepsy, multiple sclerosis, and cancer-related symptoms. Countries like the United States, Canada, the United Kingdom, and the
Netherlands have demonstrated the feasibility of legal frameworks that regulate cannabis use for medical and medicinal purposes.

1.2. Market Size and Growth

The global medical cannabis market is projected to reach $51 billion by 2027, driven by increasing demand for therapeutic cannabis products. Nigeria’s entry into this market could generate significant economic benefits, leveraging its agricultural potential and favourable climate for cannabis cultivation.

Section 2: Financial Benefits of Legalising Medical Cannabis

2.1. Case Studies of Economic Impact

• United States:
• In the United States of America, Medical Cannabis is legal in a growing number ofstates and in states where medical cannabis is legal, the economic impact has beenprofound. For example, Colorado generated over $2 billion in cannabis sales in 2020, with significant tax revenue allocated to healthcare, education, and infrastructure development. The US has taken a decentralised approach to cannabis legalisation. States like California and Colorado were pioneers in legalising medical cannabis, leading to a multibillion-dollar industry. According to the National Cannabis Industry Association, the cannabis market in the US contributed over $10 billion to the economy in 2020 alone.

The U.S. has a fragmented medical cannabis market due to state-level legalisation.

Financial Benefits:

• Tax Revenues: States like California and Colorado generate billions in tax revenues from cannabis sales. Colorado, for example, collected over $423 million in taxes and fees in 2021 alone.
• Job Creation: The cannabis industry supported over 428,000 full-time jobs by 2022 in the U.S.

Societal Benefits:

• Public Health: Medical cannabis programmes have provided alternative treatments for chronic pain, reducing opioid dependence.
• Criminal Justice: Legalisation has led to a decrease in cannabis-related arrests, alleviating pressure on the criminal justice system.

Key legislative instruments include:

• The Controlled Substances Act (CSA), which governs federal restrictions but allows state-level legalisation.
• Case law such as Gonzales v. Raich (2005), which upheld federal authority over cannabis regulation but did not prohibit state-level legalisation.

• Canada:
• Canada’s legal cannabis industry contributed $43.5 billion to its GDP between 2018 and 2021. The country also benefits from a growing export market for medical cannabis products, including CBD oil. Canada legalised medical cannabis in 2001 under the Access to Cannabis for Medical Purposes Regulations (ACMPR). The Cannabis Act of 2018 expanded legalisation to recreational use, creating a robust market. The Canadian cannabis industry contributes over CAD 8 billion annually to the economy.

Financial Benefits:

• Economic Growth: The cannabis industry contributed approximately $43.5 billion to Canada’s GDP between 2018 and 2022.
• Export Opportunities: Canada exports medical cannabis to countries such as Germany, enhancing its trade balance.

Societal Benefits:

• Access to Medicine: Patients benefit from regulated, safe, and high-quality cannabis products.
• Research and Innovation: Legalization has spurred research into cannabis’s therapeutic potential.

• Netherlands:
• The Netherlands’ regulated cannabis industry has supported small businesses and tourism while contributing to public health through controlled access to medical cannabis. The Netherlands is globally renowned for its progressive stance on cannabis, including the use of medical cannabis since 2003. The Opium Act regulates cannabis, distinguishing between soft and hard drugs, allowing for controlled access to medical cannabis and CBD products.

Financial Benefits:

• Tourism: The cannabis culture in the Netherlands attracts millions of tourists annually, though medical cannabis is distinct from recreational use.
• Exports: Bedrocan, a Dutch company, supplies medical cannabis to several countries.

Societal Benefits:

• Public Health: Medical cannabis programs have enhanced patient care while reducing the stigma associated with its use.
• Social Equity: Progressive cannabis policies have contributed to reduced societal harm from drug-related offenses.

• United Kingdom:
• Although the UK’s cannabis industry is still developing, its medical cannabis market is valued at over £2 billion annually, and further expansion could potentially generate substantial tax revenue.In the UK, the legalisation of medical cannabis in 2018 under the Misuse of Drugs Act 1971 allowed licensed prescriptions for conditions like epilepsy and chronic pain. The policy, while restrictive, opened pathways for a growing pharmaceutical sector focused on cannabis-based medications.

Financial Benefits:

• Pharmaceutical Development: Companies such as GW Pharmaceuticals, based in the UK, have developed cannabis-derived medications like Epidiolex, contributing significantly to the pharmaceutical sector.

Societal Benefits:

• Patient Care: Patients with epilepsy and multiple sclerosis have access to effective treatments, improving quality of life.

Other Countries

Countries like Israel, Germany, and Australia have also adopted medical cannabis legalisation, with similar economic and societal impacts. These nations have reported improvements in patient care and significant investment inflows into the cannabis sector.

South Africa

South Africa’s legalisation of cannabis for personal and medical use highlights the importance of leveraging cultural acceptance. For Nigeria, where cannabis has been cultivated traditionally in certain regions, legalising its medical use could be culturally and
economically beneficial.

Lesotho

Lesotho, Africa’s pioneer in medical cannabis export, has attracted international investments worth millions of dollars. This demonstrates the potential of cannabis as a major export commodity for African nations.

2.2. Implications for Nigeria

Nigeria, with its vast arable land and experience in agricultural exports, could replicate these successes. Legalising medical cannabis would:

• Boost Agricultural Productivity: Cannabis cultivation could provide farmers with a high-value crop, increasing income levels and employment in rural areas.
• Generate Tax Revenue: A regulated cannabis market could provide a steady revenue stream for the government, funding healthcare, education, and infrastructure.
• Encourage Foreign Direct Investment (FDI): Global companies seeking to source medical cannabis could invest in Nigeria’s agricultural and processing sectors.
• Job Creation: The cannabis industry spans farming, processing, retail, and research, offering employment opportunities for millions, particularly in rural areas.

Section 3: Societal Benefits of Legalising Medical Cannabis

3.1. Improving Healthcare Access

• Therapeutic Benefits: Medical cannabis offers effective treatment for chronic pain, epilepsy, and other conditions. In countries like Canada and the Netherlands, legal access to cannabis has reduced the dependency on opioids, lowering the risk of addiction and overdose.
• Mental Health: Research indicates that cannabis may help manage anxiety, depression, and PTSD. Legalising medical cannabis in Nigeria could enhance mental health outcomes and reduce the stigma surrounding mental health treatments.

3.2. Reducing the Burden on Law Enforcement and Judiciary

• United States: States with legal cannabis have experienced reduced arrests for drug-related offenses, allowing law enforcement to focus on more serious crimes.
• Nigeria’s Potential: Decriminalising medical cannabis could ease the burden on Nigeria’s overburdened judicial system and reduce prison overcrowding caused by minor drug offenses.

3.3. Promoting Public Awareness and Education

Legalisation allows for regulated education campaigns about the safe use of cannabis, dispelling myths and reducing the risks associated with unregulated consumption.

3.4 Reducing Illicit Trade

Legalisation and regulation can curtail the black market for cannabis, ensuring quality control and safer consumption. The Netherlands’ “coffee shop” model for cannabis sales has reduced illegal trade significantly.

3.5 Social Equity

Countries like Canada have implemented policies to address the historical injustices of cannabis prohibition. Nigeria could similarly ensure that communities disproportionately affected by drug enforcement are included in the benefits of legalisation.

Section 4: Comparative Analysis of Regulatory Frameworks

4.1. Lessons from the United States

• Federal laws remain restrictive, but state-level legalisation has allowed experimentation with regulatory frameworks, taxation models, and licensing systems. Nigeria could adopt a state-based approach to pilot medical cannabis legalisation.

4.2. Canada’s Fully Legal Framework

• Canada’s comprehensive approach, including cultivation, distribution, and export, provides a model for Nigeria to establish a vertically integrated cannabis industry.

4.3. The Netherlands’ Balanced Approach

• The Netherlands emphasises harm reduction, with policies supporting both recreational and medical cannabis. Nigeria could adapt this model for medical purposes, focusing on strict licensing and oversight.

4.4. The United Kingdom’s Conservative Model

• The UK’s focus on prescription-based access to medical cannabis provides a starting point for Nigeria to explore cautious, patient-focused legalisation.

Section 5: The Potential of CBD Oil as an Export Commodity

5.1. Global Market Demand

The demand for CBD oil, a non-psychoactive compound derived from cannabis, has skyrocketed due to its applications in wellness and healthcare. The global CBD oil market is projected to reach $22 billion by 2030.

5.2. Nigeria’s Competitive Advantage

• Agricultural Expertise: Nigeria’s experience with crops like cocoa and palm oil positions it to develop a robust cannabis cultivation industry.
• Climate Suitability: The tropical climate in states like Delta, Ondo and Ekiti is ideal for cannabis cultivation, ensuring potential high yields.
• Export Potential: With proper regulation, Nigeria could become a leading exporter of CBD oil to markets in Europe, North America, and Asia.

5.3. Job Creation and Local Industries

• Processing and Value Addition: Developing CBD oil processing facilities would create jobs and stimulate local economies, with the potential of further diversifying the Nigerian economy and further reducing the dependence on Crude Oil.
• Research and Development: Investing in cannabis research could lead to innovative products, enhancing Nigeria’s global competitiveness.

Section 6: Challenges and Recommendations

6.1. Potential Challenges

• Regulatory Hurdles: Crafting an effective regulatory framework that prevents misuse while promoting industry growth.
• Social Stigma: Overcoming cultural and religious opposition to cannabis legalisation.
• Security Concerns: Preventing illegal diversion of medical cannabis to the black market.

6.2. Recommendations

• Stakeholder Engagement: Involve farmers, healthcare professionals, and religious leaders in the policy-making process.
• Phased Implementation: Pilot medical cannabis programs in select states to evaluate outcomes before nationwide rollout.
• Strict Licensing and Oversight: Ensure robust systems for cultivation, distribution, and export to prevent misuse.
• Public Education Campaigns: Address misconceptions about cannabis and highlight its medical benefits.

Section 7: Conclusion

Legalising medical cannabis in Nigeria offers significant financial and societal benefits, as videnced by the experiences of the United States, Canada, the United Kingdom, and the Netherlands. By developing a regulated medical cannabis industry, Nigeria can diversify its economy, improve public health outcomes, and reduce the burden on law enforcement. The cultivation and export of CBD oil present a lucrative opportunity to position Nigeria as a global leader in the medical cannabis market. With strategic planning and stakeholder engagement, Nigeria can harness the potential of medical cannabis to foster economic growth and societal well-being.

This essay outlines a roadmap for Nigeria to benefit from legalising medical cannabis, drawing lessons from international experiences while addressing local challenges. By embracing this opportunity, Nigeria can unlock new revenue streams, improve public health,
and contribute to global advancements in medical cannabis research and development.