Disadvantages of Border Closure in Nigeria
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In 2019, the Nigerian government decided to close its borders in a bid
to reduce the smuggling and illegal inflows of goods such as rice and
outflows of Nigeria’s subsidized fuel. The Nigerian government
justifies the closure of the border by pointing to the need to support
the agricultural sector in Nigeria and increase national productivity
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In a bid to achieve regional integration across West African
countries, the ECOWAS treaty was formed in 1975. This move has not
been without its challenges which includes:
The violation of the ECOWAS treaty on the movement of goods and people
through the smuggling of firearms
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Human and drug trafficking which has further promoted insurgency and
threatened the peace and stability of the ECOWAS countries and
especially Nigeria.
However, border closure is a very serious decision not to be taken
lightly. In fact, nations across the world only resort to closing
their borders in circumstances they cannot control such as war.
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The decision to close the country’s border for economic reasons is
more or less an economic aberration. Over the years, countries that
have closed their borders take the decision, not for trade-related
reasons. For example, in the case of Sudan, Rwanda, and others, these
countries closed their borders when their security was jeopardized.
Countries also close borders during disease outbreaks such as Ebola or
other pandemics, that have high potential to spread across borders.
Disadvantages of Border Closure in Nigeria
This article reveals to you many other disadvantages of border closure
in Nigeria. Read on below:
Negative consequences on local communities
The border closure in Nigeria has badly affected the livelihoods of
many in local communities near the border. In Benin, communities in
areas close to the Seme border or near the Owode border, largely
depend on Nigerian markets as their means of livelihood. The sudden
closure of the border has caused thousands of small business farmers
to lose their means of making money and also default on loans. In
these regions, there exist strong economic networks where small
business traders are able to make money, the closure of the border has
made these ones lose their primary sources of income.
Negative consequences on Nigerian consumers
Not only is the disadvantage of the Nigerian border closure felt by
those living in areas close to the borders. Nigerians are also feeling
the negative consequences of the government’s action. Due to the
closure, prices of goods have been pushed up, most significantly of
which is rice. It is reported that in Ibadan, a city with a relatively
affordable cost of living, the price of local rice increased by almost
9% in the month the border was closed. This is the largest
month-on-month increase in rice since 2012. Not only rice but the
prices of other foods such as palm oil, fish, meat, and bread are also
increasing. This is particularly troubling in a nation where
approximately half of the household’s budgets are spent on food and
the prices of food are ordinarily higher than it is found in the rest
of the world.
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Border closure is not enough to measure
The government claims it took this action, closing its borders so as
to stimulate sustained production growth within the county. However,
closing the borders is not enough to achieve this. The government
needs to support the private sector through the following other
crucial means:Necessitating the provision of public goods that are
needed. This will help to establish a conducive business environment
and also reduce transaction costs for firms.
Providing easy access to credit
Improving land tenure and land titling systems
Providing and ensuring access to affordable and stable electricity.
Closing the borders results in isolation of domestic markets which
does nothing in reducing costs of production. The consumers get to
bear the burden of these costs. The closure of the border is only a
temporary solution that will not help in addressing the root causes of
smuggling.
Economic experts have mostly predicted that the border closure will
not help the government achieve its goals in the long-run. This is
because the closure is a temporary fix to the problem of smuggling.
Smuggling has other deep-rooted causes such as differences in price
between Nigeria and its neighboring countries. These factors are
likely to persist long after the border is reopened if not properly
addressed.
Poverty
If the government insists on closing the borders still and the
increase in prices of food continues, Nigeria could see more people
driven into poverty. This would result in an increase in the
country’s poverty rate. In a country with limited employment
opportunities and an already high poverty rate, this is expected as
people are spending more than they can afford on food and many others
have their means of survival taken away from them.
The invalidation of the ECOWAS treaty
The move of the Nigerian government to close its land borders has
raised questions over the validity of the ECOWAS treaty. The ECOWAS
treaty permits the free movement of people and goods across West
Africa. Aside from the implications of the border closure on Nigerian
citizens, it is also inconsistent with the aim of regional economic
integration. Nigeria headed the establishment of ECOWAS 44 years ago
with the major aim of a “free trade area†among member states.
Nigeria’s unilateral decision to close its borders reinforces the
general belief that the West African states have not been successful
in achieving their aim of setting up ECOWAS 44 years ago. The ECOWAS
treaty was aimed at ensuring the free movement of goods and even
people within the ECOWAS member states. It is expected that Nigeria
would have combined efforts with the other states in curbing
smuggling.
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Inflation
There are reports that the closure of the country’s borders has
increased the inflation rate. The inflation rate rose to 11.24% in
2019 after the closure and was mainly driven by the increase in food
prices.
Note that at the heart of the problem of smuggling is a network of
many other issues mentioned in the article such as lack of access to
credit and other facilities needed to aid production. Another is the
unprofessionalism and corruption of custom and Immigration officials.
The land borders of Nigeria are also very porous with many illegal
paths through which smuggling takes place.
In order to tackle the problem of smuggling, the government has to
address these other fundamental issues, or else remedies such as
closing the borders will remain temporary fixes with many
disadvantages to the masses.
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'https://nigerianfinder.com/wp-admin/admin-ajax.php', {action:
'mts_view_count', id: '290793'}); });
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In 2019, the Nigerian government decided to close its borders in a bid
to reduce the smuggling and illegal inflows of goods such as rice and
outflows of Nigeria’s subsidized fuel. The Nigerian government
justifies the closure of the border by pointing to the need to support
the agricultural sector in Nigeria and increase national productivity
(adsbygoogle = window.adsbygoogle || []).push({});
In a bid to achieve regional integration across West African
countries, the ECOWAS treaty was formed in 1975. This move has not
been without its challenges which includes:
The violation of the ECOWAS treaty on the movement of goods and people
through the smuggling of firearms
(adsbygoogle = window.adsbygoogle || []).push({});
Human and drug trafficking which has further promoted insurgency and
threatened the peace and stability of the ECOWAS countries and
especially Nigeria.
However, border closure is a very serious decision not to be taken
lightly. In fact, nations across the world only resort to closing
their borders in circumstances they cannot control such as war.
(adsbygoogle = window.adsbygoogle || []).push({});
The decision to close the country’s border for economic reasons is
more or less an economic aberration. Over the years, countries that
have closed their borders take the decision, not for trade-related
reasons. For example, in the case of Sudan, Rwanda, and others, these
countries closed their borders when their security was jeopardized.
Countries also close borders during disease outbreaks such as Ebola or
other pandemics, that have high potential to spread across borders.
Disadvantages of Border Closure in Nigeria
This article reveals to you many other disadvantages of border closure
in Nigeria. Read on below:
Negative consequences on local communities
The border closure in Nigeria has badly affected the livelihoods of
many in local communities near the border. In Benin, communities in
areas close to the Seme border or near the Owode border, largely
depend on Nigerian markets as their means of livelihood. The sudden
closure of the border has caused thousands of small business farmers
to lose their means of making money and also default on loans. In
these regions, there exist strong economic networks where small
business traders are able to make money, the closure of the border has
made these ones lose their primary sources of income.
Negative consequences on Nigerian consumers
Not only is the disadvantage of the Nigerian border closure felt by
those living in areas close to the borders. Nigerians are also feeling
the negative consequences of the government’s action. Due to the
closure, prices of goods have been pushed up, most significantly of
which is rice. It is reported that in Ibadan, a city with a relatively
affordable cost of living, the price of local rice increased by almost
9% in the month the border was closed. This is the largest
month-on-month increase in rice since 2012. Not only rice but the
prices of other foods such as palm oil, fish, meat, and bread are also
increasing. This is particularly troubling in a nation where
approximately half of the household’s budgets are spent on food and
the prices of food are ordinarily higher than it is found in the rest
of the world.
(adsbygoogle = window.adsbygoogle || []).push({});
Border closure is not enough to measure
The government claims it took this action, closing its borders so as
to stimulate sustained production growth within the county. However,
closing the borders is not enough to achieve this. The government
needs to support the private sector through the following other
crucial means:Necessitating the provision of public goods that are
needed. This will help to establish a conducive business environment
and also reduce transaction costs for firms.
Providing easy access to credit
Improving land tenure and land titling systems
Providing and ensuring access to affordable and stable electricity.
Closing the borders results in isolation of domestic markets which
does nothing in reducing costs of production. The consumers get to
bear the burden of these costs. The closure of the border is only a
temporary solution that will not help in addressing the root causes of
smuggling.
Economic experts have mostly predicted that the border closure will
not help the government achieve its goals in the long-run. This is
because the closure is a temporary fix to the problem of smuggling.
Smuggling has other deep-rooted causes such as differences in price
between Nigeria and its neighboring countries. These factors are
likely to persist long after the border is reopened if not properly
addressed.
Poverty
If the government insists on closing the borders still and the
increase in prices of food continues, Nigeria could see more people
driven into poverty. This would result in an increase in the
country’s poverty rate. In a country with limited employment
opportunities and an already high poverty rate, this is expected as
people are spending more than they can afford on food and many others
have their means of survival taken away from them.
The invalidation of the ECOWAS treaty
The move of the Nigerian government to close its land borders has
raised questions over the validity of the ECOWAS treaty. The ECOWAS
treaty permits the free movement of people and goods across West
Africa. Aside from the implications of the border closure on Nigerian
citizens, it is also inconsistent with the aim of regional economic
integration. Nigeria headed the establishment of ECOWAS 44 years ago
with the major aim of a “free trade area†among member states.
Nigeria’s unilateral decision to close its borders reinforces the
general belief that the West African states have not been successful
in achieving their aim of setting up ECOWAS 44 years ago. The ECOWAS
treaty was aimed at ensuring the free movement of goods and even
people within the ECOWAS member states. It is expected that Nigeria
would have combined efforts with the other states in curbing
smuggling.
(adsbygoogle = window.adsbygoogle || []).push({});
Inflation
There are reports that the closure of the country’s borders has
increased the inflation rate. The inflation rate rose to 11.24% in
2019 after the closure and was mainly driven by the increase in food
prices.
Note that at the heart of the problem of smuggling is a network of
many other issues mentioned in the article such as lack of access to
credit and other facilities needed to aid production. Another is the
unprofessionalism and corruption of custom and Immigration officials.
The land borders of Nigeria are also very porous with many illegal
paths through which smuggling takes place.
In order to tackle the problem of smuggling, the government has to
address these other fundamental issues, or else remedies such as
closing the borders will remain temporary fixes with many
disadvantages to the masses.
(adsbygoogle = window.adsbygoogle || []).push({});
(adsbygoogle = window.adsbygoogle || []).push({});
jQuery(document).ready(function( $) { $.post(
'https://nigerianfinder.com/wp-admin/admin-ajax.php', {action:
'mts_view_count', id: '290793'}); });
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