Economic Trade Disruption: Nigeria-Niger Republic Relations Strained After Coup Fallout
Economic Trade Disruption: Nigeria-Niger Republic Relations Strained After Coup Fallout
The close trade relationship connecting Nigeria and its neighbor, Niger Republic, is facing challenges following political unrest. Exports and transit cargoes valued at $180 million are at risk due to sanctions imposed by the Economic Community of West African States (ECOWAS) on Niger Republic.
The situation highlights potential trade consequences.
The crisis began when ECOWAS decided to impose sanctions on Niger Republic after a coup led to a change in leadership. This has led to border closures, impacting cross-border trade between Niger Republic and Nigeria. The northern states of Kebbi, Sokoto, Zamfara, Katsina, Jigawa, Yobe, and Borno have been affected by these closures.
The impact is visible as shipments meant for Niger Republic and Nigeria are stuck at border crossings. Bashir Adewale Adeniyi, the acting comptroller general of Customs, has instructed customs officers to stop transit cargoes heading for Niger Republic. There are concerns about potential smuggling activities due to the border closure.
Notably, there seems to be a shift in cargo movement. Cargoes intended for Niger Republic are no longer seen at Nigerian seaports.
There are suggestions that these goods might be offloaded at warehouses and then transported by road to Niger Republic.
Similar observations were made at other ports like Port & Cargo terminal in Tin Can Island and the newly commissioned Lekki port. Trade statistics show that Nigeria exported $180 million worth of goods to Niger Republic in 2021, including electricity, tobacco, and cement. Over the past 26 years,
Nigeria's exports to Niger have steadily grown at an average annual rate of 6.05%.
This trade relationship extends beyond goods to the trans-Saharan road corridor, a significant route connecting Nigeria with landlocked Sahelian neighbors. In 2020, Nigeria's trade through Niger amounted to $1.3 billion, with Nigerian trucks contributing significantly.
The Nigeria Customs Service reports that more than 2.5 million metric tonnes of export cargoes have crossed the illegal border into Niger Republic in the last six months, further complicating the situation.
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