The organised private sector (OPS) have described the Federal Government’s full reopening of Nigeria’s major international land borders as timely.
It said the move would allow businesses to access more markets, source raw materials easily and explore options for expansion.
The OPS comprises the Manufacturers Association of Nigeria (MAN), Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Lagos Chamber of Commerce and Industry (LCCI), and the Centre for the Promotion of Private Enterprise (CPPE).
Frank Onyebu, chairman, Apapa branch of MAN, told BusinessDay that Nigeria has robust borders which offer opportunities for larger markets and expansion for businesses in the manufacturing sector, but these opportunities are being snatched away by smuggling and dumping of low-quality goods.
“The reopening gives room for manufacturers to explore other markets, expand their businesses and even diversify their portfolio, in addition to this, the manufacturing sector is at the brink of collapse as stakeholders deal with rising production costs, FX shortages, supply cuts, tax burdens, among other issues, this will serve as a relief in this trying period,” he said.
Onyebu noted that the borders should not have been closed in the first place if it was properly secured from the activities of smugglers and other illegal businesses, adding that following this reopening, those manning the borders need to be more effective and efficient in carrying out their activities.
“Although the issues of national security, smuggling, and the COVID-19 pandemic are not to be taken lightly, the closure of land borders has contributed to the loss of markets and disruption of supply chains for members of the private sector that engage in trade, and this has played a part in rising inflation, especially with food prices, bringing a different dimension to the issues of insecurity faced by the economy,” Opeyemi Alaran, acting director-general of NACCIMA said.
Alaran noted that the negative economic impact of the border closure outweighed its benefits seeing that it prompted retaliatory action from other West African trade partners, which put a further strain on the implementation of the ECOWAS Free Trade Area.
“We are delighted with this decision to reopen these land borders which should indicate a resolution of the concerns raised by the Nigerian government that led to their closure.
“We urge that trade facilitation measures are also accelerated to boost the productivity and competitiveness of the Nigerian private sector and to take advantage of the trade agreements,” he said.
Gabriel Idahosa, vice president, of LCCI said the reopening will have an immediate positive impact due to the significant amount of traffic on goods and services from neighbouring countries.
