With reports that the Benin Republic Government has imposed new import duty of CFA9 million (N6.5 million) per transit truck on Nigeria-bound cargoes transiting through the country, which are exempted from all forms of duty under the Economic Community of West African States (ECOWAS) protocols on transit goods, Nigerian manufacturers, exporters and importers are still counting losses. TAIWO HASSAN reports

Indeed, when President Muhammadu Buhari on December 16, 2020, ordered the reopening of four borders – Seme, Ilela, Mfun and Maigatari, no one thought that the issues of land border in Nigeria were unresolved and later bring out its ugly heads again. Truly, the inability of the Federal Government not to open other borders has been a topical issue among the investing public and the business environment. But the succour that trailed the presidential directive on the border re-opening was that of the Seme, which is regarded as pivotal for not only Nigerian economy but that of the whole ECOWAS countries because of its strategic location. However, in the past weeks, the popular Seme border has been confronted by problems as Nigerian manufacturers and importers woke up to see the grounding of their goods transiting from the border to other ECOWAS countries.


Operators’ groan

Amid the economic effects trailing the situation, some local exporters under the aegis of Manufacturers Association of Nigeria Export Group (MANEG) came out to show their grievances, saying that many of their container trucks worth billions of naira were being denied entery into Benin Republic. The situation has prevented them from delivering goods already ordered by other countries like Ghana, Togo Ivory Coast and others as the Beninoise government insists on collecting full import duties on goods originating from Nigeria.

The decision has been described as flouting the ECOWAS protocols of free movement of goods and services, coulpled with recent bilateral trade pact MANEG insisted that the blockade on Nigeria bound cargoes could be a likely retaliation by Benin Republic on Nigeria, following the Federal Government’s decision to shut the border with Benin Republic in 2019.

Speaking with New Telegraph in Lagos, the MANEG Chairman, Other African Countries and Export Manager for Aarti Steel (Nigeria) Limited, Imokhai Ehimigbai, stated that many trucks containing goods of Nigerian companies were down on the roads at Seme border over the insistence of Benin Republic Government to collect full import duty on goods coming from Nigeria to other WA countries. Ehimigbai explained that Nigerian companies and that of West African importers were stuck, saying that this was not good for business at the moment. He also said the move would further affect the competitiveness of Nigerian goods in neighbouring countries as they won’t be able to compete. Chairman of the Association of Nigeria Licensed Customs Agents (ANCLA), Seme Border chapter, Bisiriyu Fanu, said that Benin Republic had stopped 3,700 Nigerian-bound trucks from Cote d’Ivoire, Ghana and Togo at Ilakoji – the border between Togo and the Benin Republic. He explained that Benin authorities claimed it suspected the goods were not produced in West Africa.

By law, a transit good is not supposed to be charged for import duties in the transiting country, it is expected to just pass through but the trapped trucks can still not cross the Ilakoji and Seme border up till date. “We were told to wait and see what would happen immediately after Sallah. For now, nothing yet and the trucks are still there. The only thing is that anybody who wants to bring in his or her goods must go through Togo and containerised the goods before bringing it to Abba. That is the information I have for now,” he said. Another MANEG’s member hinted that this blockade could result in high unsold goods in the warehouses when such goods are returned undelivered because of the full import duty levy. “Though am not involved but their goods are stuck in the border right now. Only goods going to Benin Republic can go straight.

You know, most of the export from this ECOWAS routes pass through Seme border that is most of the legal exports going by roads. “With this policy from Benin Republic, what they are saying is that goods that are leaving Benin Republic, the importers will have to pay import duty fully to Benin Republic when the destination of such goods or consignments is not Benin Republic.”

The National Vice President of ANLCA, Kayode Farinto, said: “There is something we call the law of reciprocity in international relations. That is, whatever you give; you take or whatever you do to your neighbour, expect it in return. “When Federal Government implemented the border closure policy, blocking the border, forgetting Nigeria is a signatory to ECOWAS protocol and convention, we shouted that this thing should not last more than 30 days but the closure went on for almost one year. “So, if Benin is now stopping Nigerian trucks, which could worsen Nigeria’s economy, we should not complain. It is allowed in international relations and it is called the law of reciprocity.”


Reasons for border closure

It would be recalled that for more than a year, the Federal Government shut down the country’s land borders due to alleged violation of ECOWAS protocols by neighbouring countries. The closure was aimed at stemming the tide of smuggling, illicit migration, arms banditry, drug trafficking and proliferation of light weapons. In addition, it was also aimed at strengthening demand for some local products, it impacted negatively on others as many businesses could not import from or export to the West and Central African market.


Last line

With reports stating that no reason was communicated to the Federal Government by Benin Republic for its action, operators are calling on government to take a decisive action against Benin Republic for flouting a common rule.