Border Reopening Critical To Recession Exit, Says NACCIMA

By Okwy Iroegbu-Chikeze and Charlse Okonji

Stakeholders in the economy on Thursday commended the Federal Government for reopening the borders, arguing that the move is strategic for the country to exit recession early next year.

National President, Nigerian Association of Chamber of Commerce Industry Mines and Agriculture (NACCIMA), Hajiya Saratu Iya Aliyu, said the decision to reopen four of the nation’s land borders at Ilela, Maitagari, Seme and Mfum, with immediate effect is most welcome development and one of the important strategic moves, in our quest to exit recession in first quarter of 2021.

She said: “NACCIMA has on several occasions called for the opening of these land borders for numerous reasons including the negative impact of their closure on our economy since August 2019. When hints were given sometimes in November 2020 by the minister of finance that the Committee she headed had and recommended the opening of these land borders, we lauded that move and called for immediate action to that effect.

“We are delighted that President Muhammadu Buhari has heeded the call and approved the recommendations to re-open the borders.

“As a major economic player in the West African sub-region, this decision will surely help our image and commitment to remain a major economic player in the sub-region.  It is a positive decision because trade across our land borders is an important component of our cross border trade which can help boost operations of our SMEs engaged in export of non-oil products through the land borders.”

She said the move is also a welcome strategic move in context of the ratification of the The African Continental Free Trade Area (AfCFTA). “This is because it is a clear signal of our readiness to effectively trade under the agreement. Since the reopening comes with the announcement that the ban on importation of rice poultry and other banned products remains, we call on security agencies to also ensure effective border patrol.

“As we look forward to year 2021, we sincerely hope that the full opening of all our land borders will have the desired effect in our concerted efforts to rebuild and reposition the economy, which was greatly affected by COVID-19 among other challenges this year,” she added.

The Chairman, Manufacturers Association of Nigeria (MAN), Apapa Branch, Frank Ike Onyebu, said the border should never have been closed because there are officials monitoring activities at the border posts.

“There is no way a country should close its borders, it doesn’t work that way, we should not shut out the entire African market because of illicit activities. The government should provide adequate and proper security that is sincere to man the border.

It is a welcome idea that they have been reopened; we should find a better way of securing the border, order than closing the border. In any case, the closure has been ineffective, because smuggling activities have been going on at the illegal ones. So, what they are closing should be the illegal borders. I do not see any reason why any government should be talking of border closure at this point in time when we are talking about AfCFTA, there is no sense in it.

“So, what I am saying is that the government should formulate and implement better policies, the immigration and the customs are there, and they should perform their duties,”  the MAN chief said.

The Director-General, Lagos Chamber of Commerce and Industry (LCCI) Dr. Muda Yusuf, also hailed the decision of the government to reopen the borders, arguing that it would be beneficial to the economy in the light of the ratification of AfCFTA treaty.

“It is a welcome development. It would be beneficial to the economy and in consonance with the recently ratified AfCFTA. Many small businesses depend on cross border trade for a living.  Many manufacturers also leverage the ECOWAS Trade Liberalisation Scheme (ETLS) to boost their business.  Many also source their raw materials from countries in the sub region.

‘But there is a need to strengthen the border policing and management mechanisms to avoid a relapse into the conditions that led to the closure in the first place.  The biggest challenge with the border management is an institutional issue.  We need to demand accountability from the institutions that have the responsibility for border policing and management,” Dr Yusuf said.

The President, Nigerian Institute of Shipping (NIS), Capt. Tony Onoharigho, said the reopening of the nation’s land borders would lead to increased market turnover, with more goods coming into the country.

Onoharigho, in an interview in Lagos, said the opening of the borders was the right step to take, having been closed longer than expected.

“Though we know it was due to the procurement of arms and preventing banned goods from entering the country that the border was closed, it stayed longer than was expected.

“The opening of the border will be of benefit to the people of the south-west and south-south because the goods that will be coming in now will increase the market turnover and money in circulation.

“And when the goods flood the market, it will have a good effect on prices as it will come down and people will be able to afford them, because things are very difficult now in the country,” he said.

Dr Segun Musa, Deputy National President, Air Logistics, National Association of Government Approved Freight Forwarders (NAGAFF), also said the reopening was welcome.

He said some people had been adversely affected by the closure and the reopening would see them picking up and strengthening their businesses.

Musa said that the border opening would also ensure that business communities in Nigeria participate and benefit from the AfCFTA.

“I believe that the opening of the border has to do with the commencement of the AfCFTA, so that Nigeria will not be excluded in the trade agreement and this is a welcome development,” he said.

“The president has approved the reopening of four land borders, namely: Seme in the South-West; Ilela in the North West; Maigatari border in the North-West and North-Central; and Mfum in the South-South.

“These four land borders will be opened immediately, while the remaining land borders are directed to be reopened on or before Dec. 31,’’ she said after the Federal Executive Council meeting held virtually in Abuja.

Ahmed said President Muhammadu Buhari also directed that while the borders were being reopened, the ban on the importation of rice, poultry and other products still subsisted and would be implemented by the border patrol team.

– The Nation