It’s an open knowledge that it’s well over two months Nigeria shut it’s land borders two months ago to tackle the menace of smuggling which has over the years been under-developing Nigerian economy through loss of massive legitimate imports revenue. Public commentaries understandably focus on the gains and pains of the border closures to the affected economies and peoples of Nigeria, Benin Republic, Cameroon, Niger and even Ghana. At least for once in recent times, economics competes for politics (read: votes snatching and vote rigging!) in public discourse. Even at that, it is time we put the smuggling discourse in correct perspective. Smuggling is another word for unfair trade which is not acceptable in international trade. The media should refrain the discussion from the narrative of smugglers to that of economic development and welfare of the people of the sub region. Openness to international trade is a colonial legacy for most member- states Economic Community of West African States, (ECOWAS). Indeed the bed rock of European Colonialism after the tragic transatlantic trade in human slaves was unfair trade with the colonies in commodities and raw materials. Colonies exported raw commodity materials such as cocoa, cotton, groundnuts while importing manufactured goods such as textiles. This unfair division of labour is still prevalent for a large number of developing countries, whose exports comprise mainly a few raw commodities and wholesale imports of finished manufactured goods. The results have been worsening terms of trade for most developing countries as terms of trade are bad for commodity exports vis-à-vis good returns on imported manufactures. The formation of regional economic groupings such as ECOWAS after independence (precisely on 28 May 1975) was to foster economic integration, reverse unequal trade with Europe and promote intra- Africa Trade. Same for the new African Continental Trade Agreement. Sadly the mission of ECOWAS has been distorted by some member states through serial unfair trade practices mainly against Nigeria. Republic of Benin virtually thrives on smuggling. Indeed Benin engages in what amounts to economic terrorism against Nigeria. No thanks to corrupt Nigerian officials include some Custom officials. Its is bad enough that Benin Republic runs a container economy. But it is even totally unacceptable that the containers of illegal goods are targeted towards Nigerian economy. World Bank, reported that “Benin’s economy is heavily reliant on the informal re-export and transit trade with Nigeria, which accounts for about 20 per cent of its GDP, or national income..about 80 per cent of imports into Benin are destined for Nigeria, the bank had stated.”
Nigeria for instance since 2013 imposed a tax of 70 per cent on foreign rice through its ports, with a view of boasting local production ,create jobs for local farmers and raise non-oil revenue. Unfortunately rice smugglers in Benin have been dumping duty free rice into Nigeria market with adverse implications for local productive initiatives. Same with textile materials. The mass closures of textile mills in Nigeria with attendant loss of millions of direct and indirect jobs are due to officially promoted unfair trade practices by Benin Republic authorities in particular. Trade must never be a means by itself, but has to be for the benefit of the trading countries, theory economies , their workers and societies as a whole. Unfair trade practices with Nigeria have also assumed security dimensions as border countries facilitated illegal importation of arms which in turn arm criminals and insurgents. An appropriately trade policy is one of the principal drivers of prosperous and inclusive societies with decent economic, social, and ecological development. Conversely inappropriate, trade policy could deepen under development, poverty and violence. For I trance how do we explain the revelation that since the borders were closed, the government has seized over N2.3 trillion worth of contraband, almost a quarter of 2019 budget? The border closures must continue as long as they bring about these economic gains.
The Comptroller General of the Nigeria Customs Service, Col. Hameed Ali (rtd.), recently also revealed that tax revenues had gone up as cargo destined for Benin was now arriving at Nigerian ports. “After the closure of the border and since then, we have maintained an average of about N4.7 billion to N5.8 billion on a daily basis, which is far more than we used to collect.” Also the Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, showed that the gains of the border closure include boosting domestic trade, job creation and enhancing Nigeria’s economic policies. Emefiele disclosed that the poultry association had told him that they had sold all their eggs since the border closures. “They have sold all their processed chickens and that demand is rising. The CBN governor said the rural communities were bubbling because there were activities and rice farmers were able to sell their paddy, adding that the poultry business was also doing well even as maize farmers, who produced maize from which feeds were produced were also doing business.
These official facts have shown the difference between fair and unfair trade practices for Nigeria. Lastly Governments must be able to utilize trade policy tools such as tariffs and border closures . It is essential that Nigeria government retain appropriate policy space to regulate investments and trade towards employment generation and sustainable development. It is essential that Federal government does not lose domestic policy space to reindustrialize the country and create sustainable decent jobs. Federal government must insist on fair trade from its neighbors failing which no trade at all.
Issa Aremu mni
