Kudos, knocks as closure of borders stays indefinite

…Closure of borders beneficial to Nigeria’s economy – Adeboye, Anyaoku, others

…Shutting of border may affect Lagos trade fair – LCCI

The order by President Muhammadu Buhari to shut down Nigeria’s land borders has generated reactions from different sectors of the country with many applauding the move while others see it as a move to further increase hardship on Nigerians.

Buhari on October 14 announced total closure of the country’s border expanding over 356,669 square metres, though it has been partially closed since August with no date in sight for re-opening.

Enforcing the closure, the comptroller general of the Nigeria Customs Service, Hameed Ali said limited closure of the country’s western border was effected to allow Nigeria’s security forces develop a strategy to curb smuggling from Benin.

According to him, only land borders are affected for now, adding that Nigerians can still import items through Nigeria’s seaports and airports.

Ali said: “All goods for now are banned from being exported or imported through our land borders and that is to ensure that we have total control over what comes in.

“We are strategising on how best the goods can be handled when we eventually get to the point where this operation will relax for the influx of goods.

This in a way is about curbing the smuggling of rice from Benin because the government wants Nigeria to be able to feed itself and encourage local production of a widely consumed staple,” he said.

He added that the policy took off because Nigeria wants indigenous rice farmers to take advantage of the closure and benefit from the gains, adding that the move became necessary to protect Nigerians from all sorts of substandard imported items through the land borders.

According to the Custom boss, the agency had been benefitting in terms of revenue generation from the closure of the country’s borders by the Federal Government as the Customs has been raking in between N4.7 billion and N5.8 billion since the Federal Government closed the borders.

In another way, lawyers and stakeholders in the nation justice system have continue to express divergent views on the development.

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Whereas some commended President Mohammadu Buhari for taking the bold step, some opined that he was administering a wrong dose of medicine to the ailment, adding that it will have a negative effect not only on the economy but also to Nigerians.

Reacting to the development in an exclusive interview with The Daily Times, a Senior Advocate of Nigeria Chief Sebastine Adeboye (SAN), said that it was the right step in the right direction.

According to him, local production would be protected from extinction.

“The reality is that local production cannot compete with the imported ones as the cost of production here is higher primarily because of infrastructural deficit,” he said.

Aligning himself with the submissions of Adeboye, Abuja based lawyer, Mr. Victor Oziegbe, commended the Federal Government, saying, ‘’Nigeria’s closure of its land borders against some neighboring countries as a result of illegal trade and trans border criminal activities, such as banditry and terrorism is highly commendable even in the face of international Law’’.

He advised those condemning the Federal Government to bear in mind that International laws such as protocols and Treaties are not biased against a country’s Sovereignty; but rather enhances the legal energy in signed treaties and agreement.

He said: ‘’A lot of people, including some legal minds may be quick to conclude it violates ECOWAS protocols, Treaties, such as the newly signed African Continental Trade Agreement(AFCTA), and other instrument such as GATT.

‘’Critics must be made to know that illegal activities are not protected by the various named international legal instruments. Rather, what is sacrosanct and axiomatic before any known international law is the Sovereignty of a country. This comes first and foremost.

It must be respected and uphold among comity of Nations. In view of this, Nigeria must protect its territory and integrity to the benefits of its citizens as provided in section 14 (2) (B) of the 1999 Constitution of the Federal Republic of Nigeria.

‘’Some analyst may take it further on the basis that it was a unilateral decision. This under international law is not wrong, considering the collateral injuries at our economy and collective existence. It must be made loud that it is only land borders closure.

The air and seaports are very much open for legally observed commercial transactions. This is permissive under international law, which means Nigerian government has not violated any international law.

‘’It is only when the ban is total that it may attract international law displeasure and probably anger. However, propositions and machinery must be speedily put in place by both Countries for amicable resolution of grey areas to achieve and maintain continental harmony between affected Countries.

The resolutions should be given legislative life by concerned Countries and this must be domesticated by Countries as depict in section 12 (1) of the 1999 Constitution (For Nigeria)’’.

Also, Chief Nkereuwem Udofia Akpan, Constitutional Lawyer and Human Rights Activist, supported the border closure.

He questioned why other African countries are begging Nigeria to open its borders, adding that the development will enable us to grow better.

‘’The question we should ask ourselves is, why is it so important to another country that we open our borders? Simple, Niger Republic is a parasite that feeds on Nigeria.

The entire population relies on the Nigerian economy to survive. Without rogue marketers stealing our subsidized petroleum products across the border Niger won’t last 2 weeks.

“Benin Republic has a population of 11.80 million people. But it is the world’s number 6 importer of rice. In 2018 alone, it imported rice worth $966m rice.

‘’Benin Republic is also on top of the table as world importer of cars and second hand clothing. All with a population of just 11m people. 90% of these imports in Benin Republic are only in Transit in their way to Nigerian market.

‘’Nigeria is the largest market in Africa for 2nd hand used cars (Tokunboh), rice, second hand clothing among many more items.

The irony of all these is that these goods/items from Benin Republic to Nigeria are smuggled into the country with the aid of our super corrupt customs officials and other security agencies at the boarder hence adding zero value to Nigeria economically.

‘’In a case where foreign goods are entering another country in our case as a nation, the ECOWAS Charter stipulated that the customs and border patrol agencies of exporting country should escort the goods/items to the border of importing country and handed it over to the customs and border patrol officials.

‘’Nigerian economy has endured these sabotage for decades from both countries and it is about time we stop the malpractice if Nigerian economy must grow to its full potentials’’, he added

Reacting also, The President of the Nigerian Association of Small and Medium Enterprises, Degun Agboade said the association fully supports the move to close the country’s land border as it will serve as a starting point in spuring local manufacturing.

“It will seem as if it is a wrong move, but the Nigerian Association of Small and Medium Enterprise (NASME) support the closure so that Nigeria can really re-evaluate it’s trade independence which according to our assessment is yielding results.

“Customs collection is increasing tremendously, a sit is many people have a misconceived idea about the border closure. Government did not really stop bringing goods through the land border, all they said was bring all the goods through the sea ports where business can be done legimately.

“This is because what happens in the border is smuggling and not legimately bringing goods and services into the country, if anyone is opposing then the person doesn’t know what it is.

“The border closure will be beneficially as Nigeria will change the narrative from a consuming to a producing nation and make the contry eat what they produce.

It is done in many countries and Nigeria can also do it because the benefits are really tremendous,” Agboade said while speaking to the Daily Times on the closure.

In the same vein, President of the National Association of Nigerian Traders, Ken Ikaoha (NANTS) said the closure of the border is a right step in the right direction, describing it as “the first step in the journey to the implementation of the African Continental Free Trade Area Agreement AfCFTA”.

He said that over the years, neigbouring countries have been taken advantage of Nigeria’s porous borders and benefiting from the economic gains while Nigeria suffers the loss.

He, however, warned the Federal Government to not only close the borders, which sends a signal that they are self-sufficient, but also encourage local production to boost economic growth.

The traders association president said if Nigeria successfully pass the hurdles of the border closure and explore it’s gains, it will go a long while in boosting the morale of local manufacturers and increase foreign exchange for export.

Also reacting to the border closure, the director general of NAPTIP, Dame Julie Okah- Donli speaking to The Daily Times, said the border closure has not stopped human trafficking but has reduced it drastically.

“I believe if the boarder have been closed, definitely the numbers will be reduced because most of the traffic victim’s go through the boarder, so closing the border for a period of time means that trafficking rate has really slowed down.

“I don’t think the borders will be closed forever, but at least it has helped and I’m sure there are other measures used to reduce human trafficking to the barest minimum”, she added.

Speaking further, Okah-Donli said Nigerians are beginning to be aware of the indicators of trafficking, what to do, how to report such cases and how to prevent themselves from been trafficked due to proper awareness through the community leaders, market women and youth leaders who finally relay NAPTIP message to their people.

Similarly, The Comptroller General, Nigeria Immigration Service (NIS), Muhammad Babandede, said that technology and well trained personnel is the only solution that will guarantee effective border security and management as well as enhanced internal security.

He noted that it was the only way to ensure diversification of economy which will lead to creation of more jobs, and business opportunities for the economic class and entrepreneurs of the country.

Speaking on the measures deployed by government especially the on-going Operation Swift Response coordinated by the Office of the National Security Adviser, he disclosed that the Nigeria Customs Service and the Nigeria Immigration Service are leading other security agencies to enforce government directive by emplacing regular migration and halting Smuggling activities across the Nigerian borders with her neighbors.

“The exercise has yielded huge economic benefits including increased local production and consumption of local products, inclusive market for home grown products, viable and fast market for domestic goods and services, encouragement for our local farmers, and stepped up security at the border for enhanced internal security with the reaping effects of massive arrests, apprehensions of criminal elements operating across the border as smugglers of goods and human beings.

and stepped up security at the border for enhanced internal security with the reaping effects of massive arrests, apprehensions of criminal elements operating across the border as smugglers of goods and human beings.

“Massive arrests, apprehensions of criminal elements operating across the border as Smugglers of goods and human beings, human traffickers who specializes in the trafficking in Persons, and bandits among others these has brought renewed hope and confidence to the Border Community and a National respect to the country,” he said.

Babandede assured that the Border Drill will be for Nigeria Immigration Service a lifestyle as the Federal Government will continue to harness the benefits of a Safe Border, Safe Nation that is the heart of national security strategy culminating in secured, economically viable and prosperous nation.

In the same vein, security experts who spoke about the Federal Government land border closure were unanimous that the measure has reduced or eliminated unlawful importation of arms and ammunition into the country.

They said that the closure of the country’s land borders fortnight ago by President Muhammadu Buhari was prompted by security concerns arising from rampant arms importation.

Speaking with the Daily Times on the impact of the closure, a very senior official of one of the security agencies who pleaded anonymity because he wasn’t authorised to speak said the closure was justified.

He said the whole idea of border closure originated from the office of the National Security Adviser as an interim measure to the rampant illegal importation of fire arms and ammunition into the country.

Asked about the impact of the land border closure, Emeka Nwamkpa, a Chief media strategist of Concern Professional Congress, said that initially it was thought it would adversely affect revenue generation but it has turnout to prove otherwise.

Also speaking on same issue, Sunday Nwadike, managing director of an Abuja based private security outfit, observed that the border closure has also led to reduction in the importation of unlawful small arms and ammunition into the country.

He said, although he did not have the statistics, he knew that in August, September and this month there were no arrest or announcement of the arrest of illegal importation of arms into the country compared to the previous months or last year.

Meanwhile, a former Secretary-General, Commonwealth, Emeka Anyaoku, at the weekend, said that closure of the border would boost economic development of the country.

“We should support our foreign border closure by President Muhammadu Buhari and his ultimate importance to the homegrown policy.

“If it will be the government’s concentration in a demonstrable manner on measures for enhancing the country’s development of agriculture and agro-industry; and also for enhancing the country’s manufacturing capacity to be able to serve our internal consumption and export.

“It is clear that the abundant variety of Nigeria’s natural resources and our large population constitute adequate phases for the country’s economic prosperity, if the federal and state governments can show a determination to provide the necessary policy and practical support.

“And also if our citizens can be persuaded or even coerced through regulation into curbing their appetite for imported, rather than locally produced goods, there will be a tremendous turn around in the economy,” Anyaoku said.

Speaking on the impacts of the border closure in Lagos over the weekend, Director-General of Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, said a lot of traders and exhibitors wishing to participate in the Lagos Trade Fair are likely to be affected by the partial closure.

According to him, “traders and exhibitors wishing to come to Lagos for the fair from other West African countries may not be able to come except the government decides to open the borders fully before December 2, 2019, when the fair will begin.”

He added that the LCCI has started talks with the NCS and Office of the National Security Adviser (ONSA) on the need to give consideration to exhibitors coming to the fair.

“Exhibitors from other West African countries coming to the fair usually come by road and will go through the borders.

“The loss will be huge if it is not considered because, this year, we made provision for a special hall for African countries. Some of them have made payments in anticipation to participate in the fair,” the LCCI DG added.

He had earlier noted that the border closure came with benefits and losses as there are upsides and downsides.

“Reports indicate a drastic reduction in smuggling of rice, poultry products and sugar. The smuggling of petroleum products outside the country to neighbouring countries has also declined considerably. We note and appreciate these outcomes.

“But it is important to reckon with the costs, supply chain disruptions and loses that businesses and individuals have suffered as a result of the closure.

“Corporates, large number of informal sector players and individuals doing legitimate businesses across the borders have become victims of the border closure. This poses a dilemma. The government means well, but there are many innocent casualties.

“As we celebrate the benefits, we should also count the costs. Jobs have been lost, prices have skyrocketed, legitimate exports to the sub region have been halted, intermediate products for some manufacturers have been cut off, some multinationals companies have been de-linked from their sister companies in the sub region.

“The economies of border communities have been paralysed with consequences for unemployment and poverty. Over 90 per cent of Nigeria’s trade with the West African sub-region is by road.

“We export manufactured products as well as agricultural products – detergents, toothpaste, plastic products, steel products, kitchen utensils, grains, ginger, and onions, among others.

“We also undertake many exports to the sub-region. These are sources of livelihood for Nigerians doing legitimate businesses. There are also thousands of transporters who make a living from these legitimate trading activities.

“These are costs that would run into hundreds of billions of Naira. We must weigh the costs and benefits. Most often we do not count the cost of government policy on the citizens and businesses.

“We should not underestimate the contribution of trade and commerce to the economy of the country. Distributive trade sector accounts for about 15 per cent of the nation’s GDP, which is estimated at N20 trillion.

“Traders play a major role in the value chain of the real sector activities in the economy. The trade sector is perhaps the largest employer of labour in the Nigerian economy,” he explained.

Reacting, Amadou Oumarou, a trader residing in Mararba, a satellite town in the Federal Capital Territory pleaded with the government to sit down at the table with Nigeria and negotiate a solution.

He said falling prices are hitting locally made products due to a lack of buyers in Nigeria, while the price of products imported from Nigeria is soaring.

“Some traders are selling their rice cut-price just to get rid of their stock”, said Chaibou Tchombiano, general secretary of Niger’s union representing traders, importers and exporters.

“We used to sell a 100-kilo (220-pound) sack of cowpeas for 18,500 CFA francs ($30, 27 euros). The price has fallen to 17,000, even 16,000 francs, since the border was closed,” said cereal trader Haruna Moussa.

Meanwhile, the Nigeria Bureau of Statistics (NBS) in its latest report stated that the 0.22 per cent increase in the nation’s inflation for September was higher than the 11.02 per cent recorded in August 2019.

The bureau, who is expected to release its report on the nation’s inflation for October soon, had in its month-on-month basis report stated that the headline index increased by 1.04 per cent in September 2019, representing a 0.05 per cent rate higher than the rate recorded in August 2019 (0.99) per cent.

According to the NBS report, “The percentage change in the average composite CPI for the twelve months period ending September 2019 over the average of the CPI for the previous twelve months period was 11.268 per cent, showing 0.003 per cent point from 11.271 per cent recorded in August 2019.

The report by NBS said the composite food index rose by 13.51 per cent in September 2019 compared to 13.17 per cent in August 2019.

“This rise in the food index was caused by increases in prices of Bread and cereals, Oils and fats, Meat, Potatoes, Yam and other tubers, Fish and Vegetables.

“On month-on-month basis, the food sub-index increased by 1.30 per cent in September 2019, up by 0.08 per cent points from 1.22 per cent recorded in August 2019.”

The bureau in its report stated that “average annual rate of change of the Food sub-index for the twelve-month period ending September 2019 over the previous 12-month average was 13.47 per cent, 0.01 per cent points from the average annual rate of change recorded in August 2019 (13.46) per cent.”

“In September 2019, food inflation on a year on year basis was highest in Niger (16.65per cent), Nasarawa (16.57per cent) and Abuja (16.31per cent), while Akwa Ibom (11.72per cent), Benue (11.22per cent) and Bayelsa (9.95per cent) recorded the slowest rise.

“On month on month basis, however, September 2019 food inflation was highest in Kogi (4.90per cent), Delta (3.82per cent) and Kwara (3.70per cent), while Kano (0.18per cent) and Zamfara (0.17per cent) recorded the slowest rise with River recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate),” the report added.