In an attempt to combat smuggling activities, Nigeria initiated a partial closure of its land borders with Benin in August of this year.
This decision has effectively halted the movement of goods from Benin, Cameroon, and Niger into Nigeria, disrupting trade flow and raising concerns for Nigerian businesses.
The Nigerian government has clarified that the border closure is part of its efforts to clamp down on smugglers and other criminal activities that threaten the national economy and security. While border closures are not uncommon globally, Nigeria’s recent actions have sparked worries about regional integration in Africa. Interestingly, Nigeria undertook these measures just three months after signing the African Continental Free Trade Agreement with 55 other African nations. This agreement encompasses countries with a combined GDP of $2.4 trillion and a total population of 1.2 billion, making it the world’s largest free trade area. The primary aim was to boost intra-African trade, which has historically lagged behind intercontinental trade levels. However, concerns regarding the illicit trafficking of goods such as rice and weapons have complicated matters.
Nigerian entrepreneurs have voiced grievances about the challenges arising from these abrupt border closures. Since the implementation of the border shutdown in August, Nigerian businesses have suffered significant financial losses amounting to hundreds of millions of dollars. Long queues of trucks have accumulated on the Benin side of the Nigerian border, resulting in damage to goods. Officials claim that the influx of contraband has harmed the economy and facilitated weapons smuggling. Consequently, several of Nigeria’s busiest border crossings will remain inactive, further exacerbating financial losses for businesses.
