AfCFTA: African Integration Through Free Trade and the Nigerian Conundrum
Nigeria, like other countries, in a bid to bolster international trade and foreign exchange earnings is a signatory to various trade and customs agreements, with the ECOWAS Trade Liberalisation Scheme (ETLS) as one of such. The Scheme was established to ,among others, develop a unified West African market through “the liberalization of trade by the abolition among member states of custom duties levied on imports and exports and the abolition of non-tariff barbels”. (Article 3, ECOWAS Treaty). The scheme covers goods wholly or substantially pro- duced in member states, and provides a Common External Tarriff (CET) to protect regionally produced goods.
In June 2019, Nigeria also signed the Africa Free Trade Agreement (AfCFTA), which aims to boost trade relations between member countries. The agreement removes all quotas and taxes on goods, and presumably promotes free circulation of goods within signatories, and promotes competition within members. Its purport is to ensure that locally produced goods move freely, devoid of any tarriffs/taxes between member states with the multiplier gains of improved wages and employment, increased productivity, and economic growth within signatories.
Problem
However, and in spite of these trade agreements, Nigeria, in August 2019, decided to shut her land borders (air and sea borders still remain open) to any movement of goods until a date not specifically stated. The reasons adduced by the Nigerian authorities for her decision include but
is not limited to; excess dumping on Nigeria’s land borders, especially through its westerly neighbor, Benin Republic from non-member states. It is noteworthy however that these imports are not destined for the Beninois market, but said country is just a launching pad for smuggling of goods across land borders into Nigeria, which with her large population has become a dumping ground for such goods, most times evading any duties. Finished goods, from non-ETLS signatories and substandard consumables, food items flood Nigeria through porous land borders in Benin like Seme, ldi-lroko and others as well as in Northern Nigeria border communities. Anoth- er stated reason for the decision is the prevalence of cross border crimes, as officials and smugglers are heavily involved in bribery and kidnappings which have worsened the country’s security situation.
While shutting her land borders may seem to be Nigeria’s panacea to her myriad border headaches, the author submits that it presents only a temporary solution, and remains far from addressing perceived challenges. Shut borders raises a regional and continental issue as the country is bound by its obligations under the mentioned agreements, which were not conceptualised for the sole benefit of Nigeria and her economy even though Nigeria’s market and population plays a huge role in intra-African and regional trade.
The question might be, can the ideals and purports of the AfCFTA and the ETLS be upheld where Nigeria, Africa’s largest economy, and a key ECOWAS member, chooses a protectionist solution to its border problems? On the flip side, one may also ask whether the reckless attitude of member states (who actively allow, and in most cases participate in cross border smuggling of foreign-made finished products) should be condoned under the guise of “free trade” to undermine Nigeria’s economy?
What next?
Robust and effective mechanisms should be enforced by members to adhere to treaty terms, and ensure only regionally-manufactured goods cross borders as trade items. The onus also lies on countries like Nigeria to ensure effective border monitoring to prevent illegal passage of goods not covered by treaties, and enforce payment of stipulated levies.
Reformation and restructuring of institutions and their mandates will provide a viable solution to this boundary headache. Penalties imposed by extant law — Customs and Excise Management Act 1979 — should be updated, as such provisions have become redundant, meager and ineffective. Little wonder why these laws are honoured more in breach than compliance. Also, of- fences under the Act should be investigated with assistance from an independent body, and not only by border operatives. Additionally, a minimum 5-year mandatory review of import and ex- port policies and strategies is recommended.
Accountability and pellucidity in the affairs of border operatives and personnel will also curb cross-border corruption.
A win-win solution must be profferred to enable Nigeria and her neighbours maintain the letters and spirit of the above-mentioned agreements, and benefit from the various gains derivable therefrom. Therefore, synergy is needed among laws, agencies, the government and the citizenry.
