How border closure will impact Nigeria-Niger trade

Recent events surrounding the border closure between Nigeria and Niger following a military takeover have sparked concerns among trade experts. The closure is expected to have a significant impact on trade worth over $200 million. Bamidele Ayemibo, an export consultant, sheds light on the implications of this move during an interview on CNBC Africa. Ayemibo highlights the substantial volume of trade occurring across borders in the region. While some trade is informal, there is also a significant amount of formal trade taking place. He emphasizes the importance of understanding the extensive network of trade relationships involving countries such as Algeria, Burkina Faso, Congo DRC, Gambia, Guinea, Mali, Mauritania, Senegal, and others. The official trade numbers reveal trade values ranging from $5 million to $47.6 million with different countries in the region. The interview delves into the misconception that the trade volumes may not seem significant compared to Nigeria's overall exports, primarily oil and gas. Ayemibo clarifies that while the volume of non-oil exports may be smaller, their impact on job creation, poverty eradication, and the economy's productivity is substantial. He stresses the importance of growing trade volumes, particularly in manufactured goods and agro-processed goods to drive economic progress. The conversation shifts to the potential long-term implications of the border closure on projects like the construction of a 284-kilometer Kano-Niger rail line. Ayemibo warns that this issue is not likely to dissipate quickly and could have lasting repercussions on Nigeria's geopolitical standing and domestic economy. He cautions against prioritizing geopolitics over economic concerns and urges the government to focus on the country's well-being. Ayemibo underscores the impact on local economies and job sectors in Nigeria, pointing out specific industries like glass production and manufactured goods that rely on trade with North African countries. He mentions examples of exported products such as aesthetic fibers and agricultural commodities that are being affected by the border closure. The interview concludes with a discussion on the importance of manufactured goods in Nigeria's trade relationships with African nations and the potential for growth under the African Continental Free Trade Area. In light of Ayemibo's insightful analysis, the border closure's ramifications on trade, job creation, and economic development are clear. As stakeholders navigate the challenges posed by the closure, it becomes essential to prioritize sustainable solutions that foster regional cooperation and economic growth.