Nigeria shares boundaries with the Benin Republic, Niger, and Cameroon, and in October 2019, it closed all its land borders so as to ensure absolute control over what comes into the country. The border closure was done by the government because rice was being smuggled into the country. Also, there were illicit exports of cheaper and subsidized petrol from Nigeria to its neighboring countries. So far, the closure of Nigeria’s land borders has boosted the government’s revenue in so many ways. The border closure has ensured that more duties are collected on the increased volume of goods which is entering the country legally through the ports. In this article, the importance of border closure in Nigeria will be analyzed thoroughly.
The importance of border closure in Nigeria will be discussed below:
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Border Closure Has Helped to Control The Inflow of Sub-Standard Goods in Nigeria
Nigeria as a country lacks the financial and technological ability to effectively control the activities around its land borders and also maintain an open border system. The National Immigration Commission alongside the Nigerian Customs Service does not have sufficient technology and skilled personnel to efficiently check the activities along Nigeria’s border. The aftermath of this was that the border gates of the nation were left open to foreigners and citizens of the nation to capitalize on the free trade agreements to enable their illegal activities such as smuggling of contraband products, drugs, food items like rice and poultry products, fuel, and so on.
Before the adoption of the closed border policy in Nigeria, the country endured a terrible inflow of sub-standard goods into its sovereignty. The western border, Benin Republic, was of major concern. Agricultural products such as rice were mostly smuggled in large numbers from the Benin Republic into Nigeria. Most of the rice imported from Asia into the Benin Republic was smuggled into Nigeria through the open and uncontrolled borders of the country.
These smuggled bags of rice were not just illegal. They were also of low and sub-standard quality. Sometime in 2017, the Nigerian Governors Forum aired their grievances to the federal government with respect to the low and sub-standard quality of rice in the Nigerian local markets. They noted that the bags of rice were either formally rejected in their countries or had overstayed in warehouses before they are being smuggled into Nigeria, hence their low quality.
However, it has been observed that since the adoption and enactment of the closed border policy in Nigeria, there has been a drastic drop in the inflow of sub-standard goods into the country. The border closure has helped to control the inflow of sub-standard goods into the country.
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Border Closure Has also Improved The Nigerian Economy
The government of a country is solely responsible for the security and welfare of its citizens. It is because of the interest in the fulfillment of this duty that the Nigerian government owes its citizens that the land borders of the country were closed. Ever since the borders were closed, the Nigerian government has recorded enormous accomplishments. These accomplishments include an increase in job opportunities and massive manufacture and sale of domestic commodities. The adoption of the closed border policy has also brought about an increase in federal revenue derived from legally imported goods.
These accomplishments also include a reduction in the rate of fuel subsidy, and also a reduction in the rate at which goods are smuggled into the country. Also, the adoption of the closed border policy has also brought about the establishment of mills, both on large and small scales. These mills were established so as to ensure that rice is been produced locally in the country and to see to it that the gap created by the border closure is filled. This has been made possible because there has been an increase in the demand for local rice and also the purchase of local rice.
There has also been a decrease in the rate of fuel subsidy since the enactment of the closed border policy since the illegal exportation of subsidized fuel in Nigeria is now sufficiently examined and prevented. The number of rice farmers has increased in recent years. There is also a rise in the number of established companies. Formally, rice millers and Poultry farmers were unable to make sales due to the constant smuggling of rice and poultry products. Now, they are making tremendous sales, and this has helped in creating jobs for people. In other words, there is absolute proof of improvement in the state of the Nigerian economy since the enactment of the closed border policy.
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Border Closure Has also Controlled Unfair Competition in The Nigerian Market
Formally, unchecked competition, especially from imported goods was a challenge for the manufacturing sector of the country. Also, goods that were smuggled into the country through its land borders were not thoroughly checked to ensure that they paid the appropriate import duties as well as tariffs. This made these smuggled goods to be sold at a lower price rate in comparison to the goods that were legally imported or even those that were locally made. This difference in price, despite the poor quality of the smuggled goods, creates a favourable condition for competition for these smuggled goods as against the legally imported ones and those locally made.
Furthermore, since Nigerian citizens had a kind of preference for imported rice over locally produced rice, the market seemed to favour the sellers of those illegally imported low-quality products. Before the adoption of the closed border policy in Nigeria, the demand for locally produced rice over imported rice was relatively poor and low. However, since the adoption of the policy, rice production in Nigeria has grown rapidly fast.
This adoption has also boosted the rapid growth in the demand for rice that is locally produced. So, it is fair to say that the border closure in Nigeria has helped to control the unfair competition in the Nigerian market. This has also increased the rate at which people patronize locally produced products. Local Poultry farmers have also had a reason to be happy as a result of the increase in demand for local birds.