Border closure: Losers, gainers

The federal government in August closed the country’s land borders with Cameroon, Benin Republic and Niger; in order to curb smuggling activities and insecurity among others. PAUL OKAH takes a look at those benefiting and losing from the action which has attracted applause and knocks.

The federal government’s announcement in August, this year, that the country’s borders with Cameroon, Niger and Benin, would be closed in order to curb the smuggling of cars, foodstuff, electronics and other products, expectedly attracted reactions from different quarters, especially those directly or indirectly affected by the decision or benefiting from the actions taking place at the nation’s porous borders.

While the decision of the federal government is seen by many as geared towards encouraging local production and consumption of agricultural products, many view the decision as discouraging for those earning a living from imported products, especially in communities around the border areas.

Expectedly, prices of different commodities have been reviewed upward by those benefiting from the border closure. While the Nigeria Customs Service (NCS) has said its earnings have increased, civil servants and other Nigerians have been groaning under the inflation in the prices of goods and service.

Arguably, the most affected in the government’s decision is the Seme Border, which borders Lagos with Benin Republic and through which a large volume of imported materials, legal and illegal, arrive Nigeria.

NCS revenue increases

Interestingly, the Nigeria Customs Service (NCS) has said it has made more money since it closed its land borders. According to customs boss Ali, the agency has been making between N4.7 billion to N5.8 billion daily, more than the agency used to generate before the closure.

“What we have discovered is that most of those cargoes used to go to Benin Republic. They were shipped to Benin and then discharged and smuggled into Nigeria. But now, they are forced to bring their goods to either Apapa or Tin Can Island and we have to collect duty on them. As a matter of fact, our revenue has not reduced, it is increasing as a result of closing the border,” he said.

Rice millers benefiting in Gombe

Similarly, in separate interviews with the News Agency of Nigeria (NAN) on November 6, 2019, some rice milers in Gombe state said they have recorded increased sales and patronage since the closure of the borders.

According to them, the decision by the President to close the border remains the best for the agricultural sector as it has enhanced local processing of rice in large quantities, as many of the rice millers, who hitherto shut down businesses, had reopened while others formed themselves into clusters to process rice in large quantities.

Former Chairman, Rice Millers’ Association of Nigeria, Gombe state chapter, Umar Na-Abu, said the closure was a good measure to boost employment and local production, as Nigeria has the capacity to feed itself.

“May God bless President Buhari for this initiative; we now supply rice to different parts of Nigeria, especially the South and there are more jobs here for everyone except you do not want to work. We have left this place before but today we have all returned and we mill over 10, 000 bags every day.

“I mill over 1, 200 bags per day now with my machines as against 50 before. I sell with different prices depending on their types. We sell for N13, 000, N14, 000 and N15, 000 per 50 kg. Now, we are taking a lot of youths off the street,’’ he said.

Another miller, Abubakar Mohammed, said that from the time the border was closed, his business had witnessed a lot of expansion and massive employment of youths who had started working for their money.

“Before the closure, we most times do not work at all and when we come here to work, we just mill between 15 and 20 bags. But now we mill over 60 per day and we want to further expand. We see the call to close the border as the best agriculture-friendly decision ever taken in recent times.

“This is commendable. When President Buhari came on board in 2015, he helped the farmers. Now farmers through loans have produced enough paddies. We have a lot of rice that are not being consumed but now we are getting huge money from the business; so we thank Mr. President,’’ he said.

A rice distributor, Auwalu Abari, said Nigeria had enough rice that could cater for the country even if borders were to remain closed for five years, adding that interest in farming had now increased.

According to him, with dry season farming being encouraged by the Federal Government, paddies will be available to service the milling industries to guarantee food security.

“I am a rice distributor and I supply Lagos, Enugu, Aba, Port Harcourt, Oyo and many people are now calling me everywhere. This business is good and we are now doing it with pride.

“I am happy with the closure. Today, I pay N100,000 to labourers daily but before I was not paying even N5,000. I have up to 40 people under me now as against two before. Before, I supplied only 10 to 20 bags per day. Now I supply over 1,200 bags making two trucks per day and the calls keep coming for more supplies,’’ he said.

Ghana threatens Nigerian residents

While many Nigerians at the home front are still coming to terms with the implications of the border closure,

Nigerians doing business in Ghana have been asked to quit their shops by Thursday, November 14, 2019, or be forcibly evicted in apparent retaliation against the federal government’s closure of the borders.

The ultimatum was issued by the Ghana Union of Traders’ Associations (GUTA) and the Ghana Electrical Dealers Association (GEDA).

According to different newspaper reports, notices sighted at strategic locations in markets across Ghana, especially in Kumasi, reads in capital letters: “Attention! Attention! Attention! According to the Ghana Investment Promotion Centre (GIPC) Law Act 865 Section 27A, you are not to be in our market. We are by this notice informing you to leave our market by November 14, 2019, by GUTA.”

Another notice states: “Warning! Warning! Warning! The agreement between GUTA, GEDA and the foreigners in our market place is up. So, the foreigners are given up to this weekend to abide by the agreement to leave our market places or they will be forcefully compelled to abide by it, by GEDA and GUTA.”

A Nigerian trader in Ghana told journalists: “They have closed some of the shops and threatened to close the shops belonging to Nigerians before November 14. They are angry because of Nigeria’s border closure, which has affected their businesses. The threat and notice for Nigerians to quit their market premises have been on for about 15 years now. There is an ongoing government campaign to send Nigerians back to their country.

“Since the present government in Ghana got into power, Nigerians are being deported for lack of work permits, prostitution, fraud, and other excuses. They have increased the cost of getting a work permit and taxation of Nigerian businesses in order to frustrate them. Even when you pay for all these, it might take, at least, three months to get back your international passport.”

Benin farmers weep

Benin became one of the world’s top importers of rice because of its Nigerian market. Almost all of the rice it imported from Thailand, Indonesia among others found its way to Nigeria through the Seme Border unchecked. With a population of just 11 million, Benin’s economy is hinged on trade with Nigeria.

However, the border closure has had disastrous effects on vegetable growers in Benin, who are now struggling to sell their produce. Now it is common to see spoiled, unsold vegetables abandoned by the side of the road or, in some cases, even rotting on the vine. Dozens of baskets of rotten tomatoes have been abandoned by the side of the road in Grand-Popo, Benin.

The president of a vegetable-growing collective in Houéyiho, a swampy area measuring about 37 acres in the centre of Cotonou, Charles Acakpo, told an online medium that they are suffering and that “it’s been hard since Nigeria shut its border.”

He said: “A total of 337 farmers grow their vegetables on this land as part of the collective. We grow all different kinds of vegetables on our plots, including carrots, turnips and different kinds of greens. Before the borders were closed, lots of Nigerians came to buy our produce. We sold about 15 tons of vegetables a month, which represented about 75 per cent of our total production. They were especially fond of our lettuces and our carrots.

“But it has been really hard since Nigeria closed its borders. We are really struggling to sell our produce. Here in Cotonou there is much less demand. People aren’t buying, so we’ve suffered enormous losses. We’d like our government to negotiate a re-opening of the border with the Nigerian government. That would be a good thing for us and business could start back up on both sides of the border.”

Another vegetable farmer, Jean Adounsiba, who works with the collective in Houéyiho, said he was facing the same struggles and that they have reduced their production because they can’t sell many vegetables.

“The majority of our sales were to Nigerians so, since the border closed, we’ve reduced our production because we can’t sell as many vegetables. So we are sitting here, twiddling our thumbs. If the border stays closed, the future is gloomy,” said.

FCT residents lament

Also, in separate interviews with Blueprint Weekend, many FCT residents, especially civil servants, lamented the consequences of the border closure, claiming that it was forcing the prices of food items to increase, without a commensurate increase in their incomes.

A civil servant, Nnamdi Chukwu, said that he was yet to get used to eating local rice, as he prefers foreign rice because of its taste and stone free nature.

He maintained due to the border closure, apart from rice, prices of other food items have increased forcing consumers to review their choices.

He said: “It appears generally that this year the prices of things are just increasing at a very rapid rate. For instance, a mudu of foreign rice now cost about N750, against N450 and N500, owing to the closure of border. This does not only affect the price of rice, but it also affects other products. Even price of garri is also increasing.”

For a trader, Nathaniel Ugo, the bother closure will bring more hardship to the less privileged Nigerian, as the situation of the economy favours only the rich.

 “The border is infesting hardship and spelling doom. This decision is not okay at all, because it affects everybody. The cost of living has become very high. Right now, a bag of rice is N27,000, against the initial price of N16,000  before the border closure and Christmas has not yet started. Government should reopen the border so that goods can begin to flow in; to ease the burden of the common Nigerians,” he said.

 Similarly, a primary school teacher, Mrs. Josephine Adebayo, said that farmers are greatly benefiting at the expense of poor Nigerians, including civil servants, claiming that yam sellers have also taken advantage of the border closure to increase the price of their commodity, despite the new minimum wage not being paid.

“Even yam farmers are taking advantage of the border closure to increase their own price. Everything is on the increase and it’s not helping us as a nation at all.

“Government should reverse its decision on this. It is not easy surviving in this high cost of living. With the current minimum wage, it is really affecting families,” she said.

Also speaking, a trader, Christiana Akpan, said that the impact of the border closure would be felt mostly during the Yuletide, as no country can survive on its own.

She said: “Because of this border closure our goods can not be exported. Exchange of goods becomes hindered and I don’t see how this will affect our economy positively, because no country is totally independent. We need each other to survive. The general increase in the price of goods has affected nearly all areas. As petty traders, customers hardly patronize us because there is no money in circulation. Everywhere is dry.

“Even as Christmas is approaching, affording food stuff, Christmas clothes for the children, and other necessities, is going to be challenging if this border is not reopened. So we are begging Mr. President to reconsider the plight of the masses that voted him into office and reopen the border so that goods can come into the country before we die of hunger. If we all die who will he govern then,” she asked.

FG gives conditions

On Wednesday last week, while fielding questions from journalists at Maigatari/Niger border, Maigatari local government area of Jigawa state, Comptroller General, NCS, Hameed Ali, said Nigeria’s borders will remain closed until the country and its neighbours agree on existing ECOWAS protocol on movement.

Ali, in company of the Comptroller General of the Nigeria Immigration Service (NIS), Mohammed Babandede, and the Head, Operation Border Drill, Emmanuel Aliyu Ndagi, said it was the first time the entire military and paramilitary came together to ensure security and wellbeing of Nigerians, as well as stop human trafficking.

He said by closing the borders, Nigeria was able to completely block the importation of contraband, revealing that the importation of foreign rice has stopped and the market for local varieties has risen.

According to him, the number of petty traders affected was insignificant compared to gains recorded through the operation.

He said Nigeria’s neighbours had no reason allowing cars, cooking oil and other contraband items to pass through their borders into Nigeria.

“There is no specific time for opening the borders. However, if they agree with us tomorrow on the existing laws, then we sign and update the existing protocol of transit, that’s all. We are looking forward to meeting with them and there are moves to sit with them to make them understand why we are doing what we are doing and what we want to achieve by doing what we are doing.

“If you check our website, you will see the seizures and interception we’ve made. We are able to completely block the influxes of illicit goods, and most important, stopped the exportation of petroleum product which is the biggest problem we have. We’ve also stopped the influx of rice and our rice is now selling. Even those selling garri that have been abandoned because there was cheap rice are making brisk business.

“This is because people are now buying garri as food. So, I think the economy is now picking up and we are grateful for that. There must be collateral damage in this kind of situation. Somebody must miss one or two things. For instance, Niger has no reason to allow rice, cooking oil and other illicit goods to pass through its borders to come to Nigeria. So, if it is their national interest to collect revenue it is our national interest to close our borders until we sit down and discuss.”

Leave a Reply