Reopening of land borders will improve trade – Rewane

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Uba Group

BY BAMIDELE FAMOOFO

On Friday 22nd of April, 2022, the Federal Government approved the second phase of the reopening of the remaining four land borders at Idiroko, Jibia, Kamba and Ikom respectively, in addition to the initial four that was opened in Dec, 2020 (Seme, Illela, Maigatari and Mfun). This is coming after 33 months of closure.

The closure of the land borders was part of Federal Government’s efforts to stimulate local production and prevent the smuggling of illegal arms, food and agricultural products.

Bismarck Rewane, CEO, Financial Derivatives Company Limited assures that the reopening of these borders has several implications on trade, employment and general economic activities in Nigeria. “This will boost intra-regional trade within African countries, thereby facilitating Africa Continental Free Trade Area (AfCFTA). In addition, there would be a large influx of traders, artisans and workers from neighboring countries like Ghana, Benin etc. This will improve trading activities both in the formal and informal sector. Export earnings from some products will increase significantly as more locally produced goods from small and medium sized businesses (SMEs) are exported through its land borders to other African countries,” he noted.

Rewane, however, warned that the risk to the border reopening includes increase in crime rate, smuggling and illegal trading.