…says it’s a good development for manufacturers but…
The Manufacturers Association of Nigeria, MAN has hailed the government’s action in re-opening the remaining four land borders, but advised that it must put in place infrastructure that would boost trans-border business between Nigeria and others in the Economic Community of West African States.
The Director-General of MAN, Dr. Segun Ajayi-Kadir who spoke for MAN on Friday in an exclusive interview with our medium, described the re-opening of the land borders as a welcome development, however adding that “the closure in the first instance was an extreme measure.”
Recall that the Federal Government had last Friday announced the re-opening of Idiroko land border and three others;Jibiya border post in Katsina State, Ikom border post in Cross River State, and Kamba border post in Kebbi State.
This was revealed in a circular titled: “Re-opening of four additional Nigerian border posts” signed by the Deputy Comptroller-General E. I. Edorhe, on behalf of the Comptroller-General of Customs.
The re-opening came after almost three years after they were shut. In October 2019, the Federal Government announced the total closure of land borders, placing a ban on both legitimate and illegitimate movement of goods in and out of the country.
The closure of the borders was part of FG’s efforts to prevent the smuggling of illegal arms, food & agricultural products into the country in order to stimulate local production.
Also in December 2020, President Muhammadu Buhari had ordered the re-opening of four of Nigeria’s land borders, over a year after they were all shut. The borders include Seme, Illela, Maigatari and Mfun.
With latest re-opening of additional four, it brings to eight number of land borders that have been re-opened.
Dr. Ajayi-Kadir who noted that the closure impacted negatively on the businesses of members of MAN, especially those who involve in trade with other partners in ECOWAS, added that the closure of the borders ordered in 2019 was done to prevent the proliferation of arms and ammunition which allegedly came in through the land borders.
He, however, stated that given the commencement of the African Continental Free Trade Area, AcFTA, those manufacturers who had trade relationships with other manufacturers or trade partners in the West African countries, recorded loss of businesses while the closure lasted.
Dr.Ajayi-Kadir though recognised that the closure prevented smuggled goods which could ruin manufacturing businesses from coming into the country through these land borders, he said the re-opening would boost genuine businesses and improve bilateral trade relations as far as AcFTA was concerned.
He said, “In the first instance, the closure of the borders was an extreme measure that ran contrary to the agreement the country had with the ECOWAS
“The closure impacted negatively on the businesses of MAN members, though it also prevented smuggled goods from coming into the country to compete with the locally produced goods.
“And you know that the Federal Government shut those borders based on its findings that arms and ammunition were being smuggled into the country through the borders.
“That said, our members whose products had value chains with other related businesses across the borders recorded losses while the closure lasted, and it also strained the good relationship we had with the neighbouring countries.
“The cost was high for those manufacturers who do business across the border.
“I am happy that the borders have been re-opened, it is a positive development.”
The MAN DG advised the government to put in place some measures that would enhance businesses, such as proper surveillance and monitoring of the goods and products coming into the country by the Nigeria Customs Service.
Dr. Ajayi-Kadir also said the security agencies at the border posts must guard against the smuggling of illicit goods and arms and ammunition into the country in order to avoid the breach of security.
“As the borders have been re-opened, government should remove any impediment that could impede trade, ” he said.
