With an area of 112,622 square kilometres, the Republic of Benin has a population of 10 million people and shares a long stretch of borders with Nigeria on the west. Benin’s coastline is just 121km but is blessed with a deep sea port in Cotonou, its economic capital.

In a recent report on the francophone country, Reuters described Benin as a “warehouse state” because it acts as a smuggling hub for goods bound for Nigeria. According to the World Bank, smuggling is big business in Benin, accounting for 20 percent of Gross Domestic Product (GDP). But on paper, there is little trace of the trade. The government of Benin officially records Nigeria-bound imports as being for domestic consumption, the International Monetary Fund (IMF) said in another report. But in reality, more than 80 percent of the goods entering Benin are ultimately re-exported to Nigeria.

Elaborating on the adoption of under hand tactics to undermine Nigeria as a state policy, Reuters stated in a report published in March 2017: “This (deceptive classification of imports) has the advantage of concealing the scale of the business from Nigeria, which has accused Benin officials of undermining its laws. It also allows Benin to collect VAT and other fees on the imported goods.

“Officials turn a blind eye to secret canal networks dug to ship goods across the lakes and lagoons of the border region, as well as the bribes sometimes paid to let them through, residents say. They do the same for cheap Nigerian fuel coming the other way, often ferried into Benin in jerrycans on small canoes.”

Read More : https://businessandmaritimewestafrica.com/benin-republic-as-a-smuggling-hub-first-published-april-2017/