‘LCCI Says Border Closure Causing Inflation, Stifling Trade’
The Lagos Chamber of Commerce and Industry (LCCI) has stated that the continuous border closure is causing inflationary pressures through rising food prices, while also stifling cross border trade as traders from neighbouring countries cannot access the Nigerian market by road.
The president, LCCI, Toki Mabobunje, at a stakeholders meeting to discuss the impact of the border closure on the economy, explained that although the policy has helped to curtail the smuggling of rice, other staple products, arms & ammunitions and premium motor spirit as well as to strengthen internal security, but has also had negative implications for the economy.
In her words, “This policy action has had positive and negative implications for the economy. On positives, we have seen appreciable increase in domestic rice and poultry product production. Fuel smuggling to neighbouring countries has reduced. The directive paid off for the Nigerian Customs Service as revenue generated by the agency increased to ₦1.34 trillion in 2019 from ₦1.2 trillion in 2018.”
On the flipside, she said the closure of the land borders is the cause of the rising food prices where food inflation continues to uptrend, hitting a record 14.7 per cent in December 2019, which is the highest in 20 months.
“This policy pronouncement has also led to unplanned losses for manufacturers, especially those who export their products to neighbouring countries by road,” she said.
She pointed out that the policy has also seen cross-border trade stifled, maintain ING that the border closure has also paralyzed commercial activities in border communities.
“Trade sector is currently feeling the backlash of this policy, falling into recession in the third quarter of 2019 even as its contributions to the Gross Domestic Product (GDP) dropped by 1 per cent in the same period.
The Comptroller General of Customs, Hammed Alli represented by the Assistant Comptroller General, Nigeria Customs Service, Kaycee Ekekezie giving reasons for the continous stay of the policy, , said government will continue to engage its neighbors on the need to comply with the ECOWAS Protocol on Transit trade, stressing that goods that are on the prohibition list to Nigeria, such as used clothing, poultry products, illicit drugs, vegetable all should not be exported to Nigeria by its neighbors under the ETLS protocols.
“As a result of the closure, Niger Republic Circulated an order banning the exportation of rice in any form to Nigeria. In addition, the NationalAssembly is in support of the executive directives on the border closure and the efforts of the security agencies in executing the task.
“Importantly, the exercise has provided a unique platform for the various participating Agencies to operate jointly thereby strengthening inter-agency collaborations and reducing animoslty among Government Security Agencies. It is also necessary to place on records that this is the first exercise in recent times, that the Military, Paramilitary as well as Intelligence and Security Agencies have come together to conduct such an operation which is akin to a National Security exercise. A united and strong security architecture is indeed necessary for the security of the nation,” he said
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