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Seven states in dire straits, economic losses over border closure

Seven states in dire straits, economic losses over border closure %Post Title

 

 

 

 

 

 

 

 

 

 

 

 

 

• Perishable foods worth N40b lost in three weeks
• Rice price soar from N30,000 to N55,000 per 50kg
• Border closure splits couples, families
• Reject war option against Niger, stakeholders say in final push

Ripple effects of economic sanctions on Niger Republic are rocking at least seven Nigerian states bordering the south of Niger. In the third week of the political and economic tension, about 8.5 million Nigerians living in border towns and communities have continued to count their losses running into over N40 billion .
They said since the Federal Government closed the border on August 3, perishable goods like onions, tomatoes, pepper, potatoes, and livestock are being lost, just as trade worth about $226.34 million is at risk of collapse.

Also, some marital relationships are being threatened because couples that engaged in cross-border trading before the border closure have not been able to return to their various homes.

Recall that Economic Communities of West African State (ECOWAS) Head of States had severed trade relationship with Niger, following a military coup led by General Abdlourahamane Tchiani that truncated democracy and sacked Mohammed Bazoum as the president of the country.

Seven states including Kebbi, Katsina, Sokoto, Zamfara, Jigawa, Yobe and Borno shared boundaries with the francophone country, covering a 1,608 kilometres stretch.

Findings by The Guardian revealed that the states are losing an estimated sum of N13 billion weekly to the border closure to trade, farms, and markets shutdown.

Consequently, prices of locally produced rice and other products have appreciated in the border towns because smuggling and other cross-border trading have been halted, worsening economic conditions of residents.

A 50kg of local rice sold at N17,000 before border closure now goes for N30,000 while imported rice sold at N30,000, of the same kilogramme, now sells at N55,000, necessitating an increase in demand for local rice.

Besides rice, Nigeria depends on the route for edible fruit and nuts, peel of citrus fruit or melons, raw hides and skins (other than fur skins) and leather, edible vegetables and certain roots and tuber, dairy produce; birds’ eggs; natural honey; edible products of animal origin, and others.

In turn, Nigeria exports mineral fuels, mineral oils and products of their distillation, bituminous substances, tobacco and manufactured tobacco substitutes, salt, sulphur, plastering materials, lime, cement, plastics, fertilisers, and others that have been put to a halt.

The Chairman of Arewa Economic Forum (AEF), Ibrahim Dandakata, reckoned that the border closure is hurting Nigerians, noting that Northern Nigerian businessmen have over 2,000 containers of perishable goods that are stranded at the border.
He said: “Financially, our members lose N13 billion per week at the Nigeria-Niger border. It has affected us very badly in the North. We Nigerians benefit more from the trade between Nigeria and Niger, and so we suffer more than the Nigeriens under the current border closure.”

To save the farmers and traders from further loss of resources, he suggested opening of the Maje border post between Nigeria and Benin Republic in Kebbi State, as an alternative route.

Dandakata said: “According to 2022 statistics, formal trade between the two countries accounts for $234 million (N171 billion), while informal trade is roughly estimated to be at $683 million (N515 billion), mostly in perishable commodities.”

He continued: “With the closure of the border, the average weekly loss is about N13 billion in value of trade. Since the closure is on major borders between Niger and Nigeria in Jibia in Katsina, Illela in Sokoto and Maigatari in Jigawa, we strongly recommend the immediate reopening of Maje/Illo border station in Kebbi State, which Nigerian traders use to access Benin Republic and Niger Republic,” he noted.

He warned that military intervention in the Niger crisis would wipe out all the gains that Nigeria recorded in the fight against terrorists in Northern Nigeria.

He said: “If that military intervention starts, arms will flood Nigeria.  The crisis will not affect Northern Nigeria alone.  It will spread to all parts of Nigeria, the sub-region and indeed the whole region.”

Mallam Sani Kankia, a resident of Illela local Government Area in Sokoto State, which borders Tahoua in Niger, said a significant portion of their community food items are sourced from Niger.

He said: “We are facing scarcity of food due to the border closure. This scarcity has resulted in soaring prices, including a sharp rise in the cost of foreign rice from N30,000 to N55,000 per bag, a bag of millet has jumped from N45,000 to N65,000.”

Residents of communities in Katsina State located close to the Nigerian border with Niger also lamented the downturn of socio-economic activities since the borders were closed.

The residents who spoke with The Guardian in several border communities in Baure, Jibia, Kaita, Maiadua, Mashi, and Zango local councils in Katsina State said farming and trading activities have been halted because of the fears of being attacked by militants and strange faces they see in their communities.

One of the traders, Mallam Lawal Kaita said Magama market in Jibia, which they operate every Sunday, has been deserted because of the border closure.

He said: “Maiadua market is located at Kongolam, and opens on Sundays, with varieties of goods like household items, domestic animals, and electrical appliances have been shut.”

A community leader in Kongolam, Alhaji Umaru Shirwa, who lamented the situation called on the Federal Government to consider other options of engaging the military junta, and “stop punishing innocent civilians”.

When contacted, the chairman of Jibia local council, Bishir Maito, declined comments, but he hinted that some members of the National Assembly have alerted him of their “visit to the community to assess the impact of the border closure on the residents.”
PRIOR to the sudden closure of the border, Illela in Sokoto State was a boisterous town like every other border town, where brisk businesses and trans-border trading thrive.

The long history of fraternal relationship between Nigeria and Niger Republic is now replaced with fear, suspicion, and tension. Illela international cattle market used to attract buyers and sellers from every part of Nigeria and neighbouring countries as far as Togo, Chad and Mali.

The Chairman of the cattle section of the market, Bashir Zubairu, told The Guardian that, “the market was the worst hit since the closure of the border, as herds of cows cannot be brought to the market.

He said: “The decision to close the border was totally strange to nomadic herdsmen, who move about with their animals in search of pasture. Those who were already heading to the Illela international cattle market, had to divert their animals to other nearby countries. The scarcity of animals in the market reduced business activities and revenue in the market.

“As I speak with you, the closure of the border has affected our business negatively because of the exchange rate of Naira to CFA.”
Lamenting negative effects of the border closure, Alhaji Abubakar Usman, said: “because of our closeness with the Republic of Niger, anything that affects them, will affect us. This decision to close the Illela border with Niger Republic has started affecting our economy and lifestyle.

Abdallah Nasir is in a dilemma as his thriving iced block business has been paralysed following the closure of the border.

Narrating his ordeal, Abdallah said: “I go to Niger Republic every day to buy iced blocks, bring them to Illela and sell because they have constant power supply unlike what obtains in Illela.

“I usually buy between N8000 and N100,000 iced blocks every day to sell but, since the border was closed, there is no way to enter Niger Republic. Right now, there is no business; we are surviving on the little money I saved. I hope the border will soon be reopened so that I don’t tamper with the capital for my business.

Worried by ECOWAS’ threats to adopt a military option to re-install democratic government in Niger Republic, Alhaji Mijinyawa Auta advised ECOWAS Heads of States to exercise some restraint.

The border closure was estimated to impact the $226.34 million trade between both countries. According to the International Trade Centre, imports and exports between Nigeria and Niger in 2022 totalled $226.34 million. Nigeria imported $33.43 million worth of goods and exported goods worth $192.91 million to Niger.

There was also a flurry of complaints as residents of Maigatari town and Galadi village in Babura local government area of Jigawa State that share boundary with Niger Republic have pleaded with the Federal Government to engage military junta in peaceful dialogue to end the hostility and save businesses of many Nigerians.

They said trading activities have ceased in various markets in Shuwarin in Kiyawa local government, Sara in Gwaram and Gujungu in Taura local government area of the state.

The Guardian observed total and full compliance of the border closure at both the Nigerian Immigration Service, (NIS) and Nigerian Customs Service, (NCS) entry points as both gates remained firmly closed.

This is in sharp contrast to such closure in 2021, when Fulani women from Niger Republic, who sell fura da nono (local dairy milk) were allowed to access the town. This time, not even the bush paths known in the local parlance as “No man’s land” were spared the eagle eyes of the combined border security agencies, as they rebuffed all appeals to allow the reporter to access Adari, a village on the other side of the Niger republic.

Painting a grim picture of the effects of the sanction, the leader of the Maigatari International market, Malam Muhammadu Ibrahim said the situation has brought an untold hardship to his members and even traders from Nigeria Republic as they depended on each other for the trade to thrive.

According to him, “Going to war with the Niger Republic is something we cannot even think about and pray for because we and them are one. Some of our wives and children live in Niger while some of their own wives and children also live and earn their living in Nigeria.

“All we can say is to appeal to our leaders, especially our president, to consider resolving this crisis immediately so that we return to the way we used to be.”

His sentiment is echoed by Alhaji Muhammadu Danduwa, a former chairman and now the Secretary-General of the Cattle Dealers’ Association, Maigatari International market the effect of the sanction on the business of cattle trading is so enormous, because it is the primary business that thrives between the two countries.
FORMER Foreign Affairs Minister and ex-governor of Jigawa State, Alhaji Sule Lamido, has blamed what he referred to as “President Bola Tinubu’s diplomatic naivety” as responsible for the current crisis, and called for immediate retracing of steps to save the situation.

Lamido, in a statement, advised the president to consult widely with some of his predecessors, who are still alive to tap from their experiences on how to amicably resolve some of the knotty diplomatic issues.

He said: “In the last couple of days, two brotherly and sisterly countries were almost on the brink of war neither of them could fathom or justify. The big brother Nigeria has become entangled in a far-fetched multilateral moral pretense of regional formation called ECOWAS that it has jettisoned its fundamental primary responsibility to the constituency (Nigeria) that gave it the legal authority to that membership.

He said: “I thought President Tinubu would have from the onset looked into the chemistry of the cocktail called ECOWAS before taking weighty decisions on any issue that affects the region and its consequences on his country.

“There is total unanimity in Nigeria that we should not go to war with Niger for so many reasons, especially the seven states contiguous to Niger Republic! In any case the Senate mandated by Nigerian Constitution to authorise the President with such powers has unambiguously withheld that authority.”  (Guardian)

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