Threat to Cross-Border Trade: $180 Million Nigeria-Niger Republic Trade at Risk Due to Coup Fallout

The intricate web of trade that links Nigeria and its neighboring nation, the Republic of Niger, is teetering on the brink of decline. Exports and transit cargoes, valued at $180 million, face a precarious future due to sanctions imposed on Niger by the Economic Community of West African States (ECOWAS). The latest findings by WORLD GLOBAL NEWS Sunday have laid bare the potential consequences of these sanctions.

The spark that ignited this crisis was the ECOWAS decision to impose sanctions on Niger Republic after its presidential guards orchestrated a coup, unseating President Mohamed Bazoum and elevating Abdrahmane Tchiani to the role of the new president.

The economic ripples of this political upheaval are felt acutely in the realm of cross-border trade. Border closures have been a central tenet of the sanctions, effectively cutting off Niger Republic from its major trading partner, Nigeria. Security forces have been mobilized to enforce these directives, sealing off the Nigerian-Niger Republic borders across the northern states of Kebbi, Sokoto, Zamfara, Katsina, Jigawa, Yobe, and Borno.

The impact is tangible: shipments destined for Niger Republic and Nigeria now languish at these border crossings. Bashir Adewale Adeniyi, the acting comptroller general of Customs, has gone further by instructing customs officers to halt all transit cargoes bound for Niger Republic, regardless of whether they travel by land or sea.

Adeniyi has emphasized the importance of vigilance, as smuggling attempts might escalate in response to the closure of the Nigerian-Nigerien borders. All routes leading to Niger Republic must be tightly monitored and restricted, including the Idiroko land border.

Interestingly, investigations by WORLD GLOBAL NEWS Sunday have uncovered a noteworthy shift in cargo patterns. Transit cargoes heading for Niger Republic are conspicuously absent from Nigerian seaports. Even major terminal operators, such as APM Terminals in Apapa, report no influx of goods destined for Niger Republic.

Insiders suggest an alternative narrative: cargoes intended for Niger Republic might be bypassing traditional port routes. Instead, these goods could be offloaded at various warehouses before continuing their journey by road to the landlocked nation.

Similar observations were made at Port & Cargo terminal in Tin Can Island, which also confirmed the absence of Niger Republic-bound cargoes. Even the recently commissioned Lekki port indicated that it had not received any transit cargoes destined for Niger Republic in July.

The gravity of this situation is further underscored by trade statistics. In 2021 alone, Nigeria exported $180 million worth of goods to Niger Republic. Key products in this exchange included electricity, rolled tobacco, and cement.

Over the last 26 years, Nigeria's exports to Niger have steadily grown at an average annual rate of 6.05%, marking a considerable ascent from $39 million in 1995 to $180 million in 2021.

This trade relationship extends beyond goods to the trans-Saharan road corridor, a vital conduit connecting Nigeria with its landlocked Sahelian neighbors. In 2020, Nigeria's trade through Niger amounted to $1.3 billion, with Nigerian trucks accounting for 40% of the corridor's daily traffic.

However, the Zamfara/Sokoto command of the Nigeria Customs Service reports that more than 2.5 million metric tonnes of export cargoes have passed through the Illela border into Niger Republic in the last six months.

This article was rewritten to emphasize the impacts of the political crisis on cross-border trade, highlight key points, and maintain the core information provided in the original article.