People & Money

FG to Soon Reopen Borders, 13 Months After Closure

“A thriving smuggling trade in Benin Republic’s border towns over the past four decades of Nigerian protectionism has become a culture, with knowledge of secret trade routes and relationships with corrupt customs officials passed on from generation to generation”.

 

The Federal government said it is contemplating the reopening of the nation’s land borders thirteen months after it partially shut them and eleven months after it moved to close them completely to food importers and smugglers in a protectionist move targeting self-sufficiency in a number of agricultural produce.

Vice President Yemi Osinbajo disclosed at a recent webinar on Nigeria’s economic recovery plan after the coronavirus pandemic held by The Africa Report. Nigeria  is holding talks with neighbours on the terms of the reopening in the light of the African Continental Free Trade Agreement (AfCFTA).

“We are working with our neighbours to see on what terms we would reopen those borders. At the moment, we are undertaking joint border patrols to control smuggling along the borders and we think it is working and I’m sure that soon enough we should have the borders opened.”

The strategy to ramp up local food production and attain self-sufficiency by placing curbs on food imports is giving rise to problems foretold by liberal analysts.  Nigeria had long complained its neighbour, Benin Republic, had being the primary beneficiary of protectionist measures such as high tariffs and outright bans on food and other items. The tiny French-speaking country with a population of 11.4 million suddenly ramps up importation of items such as rice and poultry products, sometimes by as much as 400%, each time Nigeria initiates measures to limit their import. A thriving smuggling trade in Benin Republic’s border towns over the past four decades of Nigerian protectionism has become a culture, with knowledge of secret trade routes and relationships with corrupt customs officials passed on from generation to generation.

Also Read: Border Closure: The Good, The Bad and The Ugly

Inflation has been rising every month since the border closure and touched its peak in 28 months at 13.22% in August, the National Bureau of Statistics reported in its latest Consumer Price Index report, raising fears that a food crisis might be round the corner.

“We are committed to the AfCFTA but we are concerned about threats to security and the economy and we had to take certain actions that would satisfy the immediate needs of our country. It (border closure) certainly wasn’t meant to be permanent and we are looking forward to reopening as quickly as possible,” Mr Osinbajo added.

With its operational phase inaugurated last July, the AfCFTA is a grand economic ambition seeking to promote intra-continental trade by way non-tariff barriers removal, digital payments systems, online negotiating forum among others.

Thirty countries have formally endorsed and signed the AfCFTA Agreement of the 55 AU nations. Its operationalisation will commence in January, 2021 after the coronavirus crisis thwarted the initial commencement, planned for July 2020.

 

 

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