Nigerian government will look to alter border policy

Subject

Significance

The dispute between Nigeria and its neighbours over the smuggling of goods, which resulted in the closure of Nigeria’s land borders last year, remains unresolved. Efforts to combat the COVID-19 pandemic have overtaken diplomatic efforts to end the impasse. The closures have failed to stem the surge in imports or significantly increase government revenues from customs duties, while also resulting in a significant increase in food prices. Hopes that the policy would come to an end earlier this year were scuppered as Nigeria’s neighbours also introduced closures to combat the spread of COVID-19.

Impacts

• A proposed joint border force to police smuggling will likely face further delays amid the COVID-19 pandemic.
• The exchange rate may be further devalued, weakening the naira to the CFA franc, which was a key driver behind the increase in smuggling.
• The naira has weakened even further on the parallel market since devaluation, with rates quoted recently as high as 430 to the dollar.