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Mali, Burkina Faso, and Niger—now operating as the Alliance of Sahel States—have imposed a 0.5% levy on all goods imported from ECOWAS nations, including Nigeria. The move marks a significant shift away from decades of free trade under ECOWAS and aims to fund the three-member alliance’s growing economic and security ambitions.
The levy excludes humanitarian aid and comes amid worsening ties with ECOWAS, which sanctioned the juntas over their refusal to return to democratic rule. With Nigeria being one of Niger’s top trading partners, the levy could disrupt West African trade flows and exacerbate regional divisions. Observers warn this could further erode ECOWAS’s relevance and complicate cross-border business across West Africa.
The new policy contradicts ECOWAS’s goal of facilitating the free movement of goods among its members and the AES countries, despite their official exit from the bloc in January. ECOWAS previously stated that goods and services from the three nations would continue to be governed by the ECOWAS Trade Liberalisation Scheme (ETLS) and investment policy.
The ETLS is intended to promote duty-free and quota-free trade among member states. However, the AES’s decision to impose a levy on ECOWAS goods creates a trade barrier that undermines ECOWAS’s objectives. This policy is expected to raise trade costs, disrupt supply chains, and increase inflation in the AES countries by making imports pricier, thereby weakening the free trade agreement within ECOWAS.
Before officially withdrawing in January, Niger, Mali, and Burkina Faso had announced their departure from ECOWAS in early 2024, following months of tensions. The juntas in these countries accused ECOWAS of not supporting their fight against terrorism and of implementing sanctions that negatively impacted their populations. ECOWAS had imposed these sanctions after the coups in the three nations but later lifted them. The three countries declined ECOWAS’s request to reconsider their exit. After their official departure, ECOWAS provided guidelines to manage its relationship with the three nations and to mitigate disruptions for citizens and businesses, which include duty-free trade, visa-free travel, and residency options.
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ECOWAS expressed a willingness to welcome any of the countries back into the bloc. However, the new levy is likely to further strain relations between the junta-led nations and ECOWAS. Additionally, Niger has withdrawn from the international coalition combating armed Islamist groups in the Lake Chad region.
