Nigeria’s Trade Dispute with Benin Worsens

The disagreement between Nigerian government and the Beninese government that led to the closure of Nigeria’s borders has taken a turn for the worse as efforts made within the week for another emergency meeting between President Muhammadu Buhari and President Patrice Talon fell through. Officials from both countries tried to have both leaders have an impromptu face to face meeting on the sidelines of the just concluded United Nations General Assembly in New York within the week, but a last minute hitch thwarted the efforts.

Read also : Businesses in Benin Republic Agonise Over Border Closure with Nigeria

 

President of Lagos Chamber of Commerce Muda Yusuf
President of Lagos Chamber of Commerce Muda Yusuf

A top Nigerian diplomat who spoke with this Correspondent on condition of anonymity said that the Nigerian government is not warmed to another meeting after the initial meeting between both leaders during the TICAD in Japan failed to achieve desired results. The diplomat said that the belief in many government circles in Nigeria is that the Beninese government is aiding and abetting the smuggling racketeering going on within the border area. This he said is reason why the Nigerian government does not want to have another meeting until its demands during the earlier meeting is met.

This border dispute coming two months after the signing of the African Continental Free Trade Area Agreement (AfCFTA) which both countries were evidently reluctant to sign raises eyebrows on the dangers facing the implementation of the deal. The border blockade which analysts have warned is having a ripple effects across the West African region has caused factories and traders to struggle to import key raw materials and having to use alternative routes for their exports.

Read also : Seme Border Shutdown Threatens Economic Growth of West African Region in 2019

Speaking on the dangers of the border closure the President of Lagos Chamber of Commerce Muda Yusuf said that the development is hurting businesses because more than 80% of West African cross-border trade is by road, the cost is quite enormous and the closure is not sustainable.

Bloomberg sources are quoted as saying that the impact of the dispute is being felt as far afield as Ghana, which is separated from Nigeria by Benin and Togo. Manufacturers have complained about the impact on costs, John Defor, research director at the Association of Ghana Industries has said.

 

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.