Recently, Nigeria slapped a ban on the movement of all goods from its border countries -Benin, Niger and Cameroon. All import and exports were banned from these counties taking place through the borders, ostensibly to prevent smuggling into and out of the country. Goods including rice, tomatoes and poultry items were affected, which are mostly traded between Nigeria and border countries through the land route. Those who have paid the customs duty at the borders have to sell goods at higher prices, mostly affecting consumers. That also has fuelled inflation not only in Nigeria but in the neighbouring countries as well since those countries also imported goods from Nigeria. To add to the woes, some of the agricultural produces grown in neighboring countries are not finding markets since Nigeria was the destination for selling such products. According to WHO, some of the essential medicines also, which used to be taken by road are struck with the closure of the borders.
Informal traders operating along the Nigeria-Benin border are the most affected lots. Nigeria has imposed high level of protection on products like rice inducing smuggling from neighbouring countries. According to the estimates of World Bank, 80% of imports into Benin are destined for Nigeria, through illegal channels.
The closure of the Nigerian border goes against the spirit the AfCFTA, which aspires to create a continental market with with the free movement of persons, capital, goods and services. The border closure is also inconsistent with its 44-year long commitment to the Economic Community of West African States (ECOWAS)—West Africa’s Regional Economic Community which Nigeria spearheaded in 1975. Under this arrangement, member states committed to the establishment of a common market, including through liberalized trade, abolition, among member states, of customs duties levied on imports and exports, and the abolition of non-tariff barriers in order to establish a free trade area. All 15 ECOWAS countries are committed to eliminating customs duties, quotas and quantity restrictions and accord each other most favored nation treatment. The other point is that as a member of WTO, Nigeria is bound by the Most Favored Nation (MFN) clause and its import duties should not be above the bound rates.
