Proposed border reopening: Economic and diplomatic implications

On the 14th of October, 2019, an unanticipated presidential order for the immediate and total closure of Nigeria’s land borders was issued leading to an abrupt termination of all import and export activities carried out through the country’s land borders. According to the presidency, the decision was necessitated by the urgent need to curb rampant smuggling through the borders and its attendant harm to the country’s economy and security.

This decision was however welcomed by intense criticism from within and beyond the shores of the country as several economic pundits presaged a negative economic boomerang for Africa’s most populous nation even as neighbouring countries frowned at the decision on the basis that it deflects from existing ECOWAS protocols and undermines the founding goals of the economic community.

One year after, with exponential inflation rates, record-low oil prices and a distressing return to the mire of economic recession, the country’s Minister of Finance, Budget and National planning, Zainab Ahmed in a recent press briefing indicated the country’s land borders may be reopened for trade activities in no distant time, subject to the President’s assent based on recommendations proffered by the

Committee setup on the matter.

Is the border reopening an ointment needed to embalm the country’s sored economy at this point in time? Can it inject life into an ailing economy yet to recover from the paralyzing effect of the pandemic? What are the economic and diplomatic implications of the border reopening? These are the questions this article aims to incisively dissect, bisect and illuminate on. Economic implications of border reopening

The border closure in October, 2019 was closely trailed on the heels by record-breaking, starvation-breeding and poverty inducing inflation in prices of staple food items. This unprecedented rise in cost of food items did not come as sucker punch; it was widely anticipated by Nigerians who oscillate between the circumferences of middle and low-income earnings understanding well that a majority of rice/other imported food items which saturate the Nigerian market are brought in legally and illegally through the land borders. From the closure of the borders till date, the price of rice (foreign and local) has substantially skyrocketed by almost 100 percent as foreign rice which normally sold for around 18,000 Naira now dances around 30,000 to 35,000 Naira, same tale goes for beans and other edibles. A research by Sbmorgen showed that the cost of preparing a pot of jollof rice in Nigeria has risen by 78 percent against what it used to be four years ago. This indisputably exemplifies how the cost of living has catapulted, making the economy unbearable for the poor and needy who constitute about 40.1 percent of the country’s total population according to the National Bureau of Statistics.

It is hoped that with reopening of the land borders as the yuletide approaches, the cost of food items will experience significant reduction or relative stability. This will consequently give consumers greater purchasing power and mildly placate those financially battered by the unpleasant ebb into another economic recession.

In addition, thousands of Nigerians formally and informally engaged in border trade will experience respite as they resume their trade and endeavours. These include trans-border transport companies, lorry drivers, artisans and traders who have established markets and destinations for their products across the West African sub-region.

Diplomatic Implications

The border closure raised eyebrows from Nigeria’s neighbours and posed questions on the feasibility of the African Free Trade Area Agreement (AFCFTA) coming into effect with a steep protectionist policy barring land imports