What are the effects of border closure?

However, there are economic impacts of border closures, such as a reduction in cross-border trade. Evidence suggests that cross-border and informal trade account for 40\% of the gross domestic product (GDP) and 55.7\% of employment in sub-Saharan Africa (SSA).

What are the implications of the closure of Nigeria border to the Nigerian economy?

The closure of Nigeria border thus boosted the government’s revenue as more duties were collected on the increased volume of goods that entered the country legally through the ports, but the fall in the supply of rice led to food price inflation, which impacted strongly negatively on Nigerian consumers (Abia, 2019).

What are the disadvantages of border closure in Nigeria?

Closing the borders results in isolation of domestic markets which does nothing in reducing costs of production. The consumers get to bear the burden of these costs. The closure of the border is only a temporary solution that will not help in addressing the root causes of smuggling.

How border closure affect agriculture in Nigeria?

“Open the borders, remove food items from the import exclusion list. Nigeria is incapable of meeting its food demand given our existing issues such as insecurity, poor farming practices, and a sharply growing population. This means increased scarcity and rising food costs.

How many border do we have in Nigeria?

___ Political Map of Nigeria Nigeria is bordered by Benin, Cameroon, Chad, and Niger, it shares maritime borders with Equatorial Guinea, Ghana, and São Tomé and Príncipe. With an area of 923,768 km² the country is almost four times the size of the UK or slightly more than twice the size of the U.S. state California.

Is Nigerian land borders open?

Nigeria has reopened its land borders to trade, but the deep-rooted economic problems that led to the closures in 2019 still need to be resolved.

What are the effects of smuggling?

Creates instability. When smuggling overtakes a functioning economy, it creates instability. This then discourages business and investments from coming into the area. For these reasons, and others besides, smuggling is highly illegal and results in fines and lengthy prison sentences.

Which countries share border with Nigeria?

Land. Nigeria is bordered to the north by Niger, to the east by Chad and Cameroon, to the south by the Gulf of Guinea of the Atlantic Ocean, and to the west by Benin.

Which countries share Nigeria border?

How has the closure of Nigeria’s land borders affected businesses?

Now, with the closure of Nigeria’s land borders, most businesses in this space have lost billions of naira while some have had to shut down.

What does Ripan say about Nigeria’s decision to close borders?

Despite the spate of criticisms that have come against the decision, the Rice Processors Association of Nigeria (RIPAN) has come out to back the decision by the government to close the borders. This according to them would save the country about US$400 million spent on smuggling rice into the country.

Should Nigeria’s borders be made less porous?

From our viewpoint, we have remained critics of Nigeria’s porous borders which we believe aids the smuggling of food and other items whose local capacity, if developed, can produce at a good cost advantage. Thus, any attempt to make our borders less porous would be a step in the right direction.

Why are trucks stuck at Nigeria’s border?

As of today, several trucks of major consumer companies remain stuck at the border hoping to move goods into neighbouring regional markets. Despite the spate of criticisms that have come against the decision, the Rice Processors Association of Nigeria (RIPAN) has come out to back the decision by the government to close the borders.