The protracted closure of Nigeria’s borders with the Republic of Benin which governments on both sides of the divide have kept mute on likely date of opening is causing untold hardships to businesses in both countries. What is more worrying however is the negative impact of the unilateral action the Nigerian government took last month on the economy of the West African region. Many goods worth billions of naira have been trapped at both border posts since the closure while demurrage has been mounting to the tune of hundreds of millions of naira. Also, there are indications that costs of Rice and frozen foods have also skyrocketed in Nigeria, while importers in Benin Republic have been counting their losses as their goods were trapped in the melee.
The government of Nigeria said that the border was closed to checkmate huge influx of smuggled Rice into Nigeria from Benin Republic, which according to government sources, is hurting efforts being made to grow local rice production in Nigeria. The decision however, is affecting many other businesses and even socio-cultural activities as the closure has made it impossible for many people and families that traverse the border so often to do so. When the Border was shut down on the 21st of August 2019, many travelers were left stranded on both sides of the Border because the action was impromptu. Some had to return back while those on return journey had no option that to remain within the Border posts of both countries. This decision according to our investigations was informed by the fact that many of the travelers were from third party countries such as Togo, Ghana, Cote d’Ivoire among others and as tension built up, officials fearing altercations may arise leading to riots appealed to higher authorities to allow such travelers access through the border to douse tension, and also minimize the human traffic buildup at both sides of the Border.
It was after concerted efforts by relatives and colleagues of people stranded at the border posts that it was agreed that all travelers with genuine travel documents should be allowed to go through the border. This came as huge relief for many who otherwise, would have remained locked out at the border.
While sources from the Nigerian government say that the closure was due to a joint military/para-military exercise code-named ‘Ex-Swift Response’ put together at the instance of the Office of the National Security Adviser (ONSA) aimed at addressing some of the security challenges facing the nation, some Customs officials speaking under anonymity maintained that the closure was basically to curb the influx of smuggled Rice and other banned goods from Benin Republic to Nigeria. The exercise therefore was in response to the need to keep in check the unbridled imports of such goods that have become a threat to the country’s efforts to industrialization and agricultural revolution.
Babagana Monguno, National Security Adviser
The Public Relations Officer of the Nigeria Customs Service (NCS) and Deputy Comptroller Joseph Attah was quoted as saying that the exercise was part of measures aimed at securing Nigeria’s land and maritime borders, pointing out that the Ex-Swift Response is a joint operation which involved the armed forces, made up of the Army, Navy, and Air Force on one hand, and the Nigeria Customs Service (NCS), the Nigerian Immigration Service (NIS), the Nigeria Police Force (NPF) and other security and intelligence agencies. Enumerating the challenges which the ongoing measures are meant to combat, the Customs Spokesperson said they are kidnapping, arms smuggling, terrorism, banditry, proliferation of small arms and light weapons, crude oil theft and human trafficking.
He added that the Exercise would hold in four geopolitical zones – South-south, South-west, North-central and North-west, those that share Border States with Nigeria’s neighbouring countries, and that it would definitely affect movement of personnel, vehicles and equipment within the affected parts of the country. He therefore admonished members of the public not to panic while going about their normal duties. The overall objective he concluded is for the good of the country, and is aimed at ensuring a peaceful and secure country in the interest of our national security.
Inspite of these clarifications members of the public especially business people have been agitated by the action. This is because the cumulative costs of that action on businesses and the economy in general have remained high. A source from the Ministry of Development and Planning of the Republic of Benin was quoted as saying that the overall impact of the border post closure will have a negative effect on the country’s economic growth projections.
This is because Nigeria is Benin Republic’s biggest trading partner and neighbor with goods worth millions of dollars traversing between both countries on daily basis, thus any act that disrupts this movement will have untold consequences not only to the economies of Benin Republic and that of Nigeria but also other neighbouring countries in the sub region such as Togo, Ghana, and Cote d’Ivoire because the region’s economic growth is dependent to a large extent, on the Economic Community of West African States treaty on free movement of goods and services, moreso, the borders of both country play a very important role on the Lagos-Dakar Corridor.
Responding to the above assertion, a top official of the Federal Ministry of Finance, Abuja who would not want to be mentioned because he does not have the authority to speak on such matters told this Correspondent that there are outstanding issues between the government of Nigeria, and the government of Benin, adding that that was reason behind the meeting between President Mohammadu Buhari and his Beninese counterpart President Patrice Talon in Japan during the just concluded Tokyo International Conference on Africa’s Development (TICAD) in Japan. He pointed out that the Government of Benin Republic has refused to honour all the trade agreements entered into by both countries, giving example with the Beninese Customs that has refused to adhere to the recently introduced interconnectivity agreement meant to facilitate seamless trade at the border.
This agreement he noted was initiated to eradicate smuggling, wrong declaration of cargo and other anti-economic vices, and to facilitate trade between Nigeria and Benin, but the Beninese government has been foot-dragging of signing that agreement, he said. Continuing, he said that this agreement, which is in line with the ECOWAS Protocole on movement of goods, would have offered Customs officials from both countries unhindered access to electronic data on goods transiting the border and the duty paid on them. He concluded that the only plausible explanation to their refusal to sign the agreement is that they are gaining from the criminal activities going on at the borders while Nigeria has been at the losing end for the last 30 years. Time has come to address this anomaly, he said.
Collaborating the above views, a Customs Official who has very good knowledge of both Seme and Idiroko Borders told this Correspondent that the Beninese authorities are also frustrating efforts by the Nigeria government to clean up activities at the Border by pulling the plug on smuggling while creating ease of movement to genuine goods from both countries, this however, is yet to materialize as the Beninese frustrates the movement legitimately made-in-Nigeria goods into their country by throwing in clogs in the wheel of existing bilateral and multilateral agreements. If Nigeria’s effort at growing local production and reindustrialization must be fruitful, how the country manages its relationship with Benin Republic should be of priority, analysts say. A Lecturer at the Lagos State University, Ojo who spoke on the issues warned that if not properly handled, it may be counterproductive as basic food items may become out of reach to many people leading to food inflation.
Lending his voice to the issue, the Director-General of the Lagos Chamber of Commerce and Industry, Mr. Muda Yusuff has condemned the decision to shut down the Border as being inimical to efforts by different multilateral organizations in the continent such as the African Union, ECOWAS, and the African Export and Import Bank (Afreximbank) to boost inter-state trade, commerce and investment within the continent. “It is very unfair and not good for business. Those doing business at the borders should have been adequately informed and given prior notice before the closure,” he added.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.