How Nigeria’s closed borders impact trade with neighbouring Ghana

The Importers and Exporters Association of Ghana has called on Nigeria to reopen its land borders in order to facilitate smoother trade relations between the two neighboring countries. Asaki Samson Awingobit, the Executive Secretary of the Association, recently sat down with CNBC Africa to discuss the implications of Nigeria's closed borders on trade with Ghana. In the interview, Awingobit highlighted the significant role Nigeria plays as one of the biggest markets for Ghanaian goods, citing the importance of the ECOWAS protocols and conventions that govern trade among member countries. The ECOWAS Common External Tariff, introduced in 2015, aimed to streamline trade by imposing standardized tariffs on imported goods. However, Awingobit expressed concerns about the impact of these tariffs on Ghanaian exports to Nigeria. One of the key points raised by Awingobit was the discrepancy in import duty rates between Ghana and Nigeria. Ghana's higher duty rates make it difficult for Ghanaian exporters to compete in the Nigerian market, as they are subjected to higher costs and tariffs. This disparity has led to challenges for Ghanaian exporters seeking to access the Nigerian market and has created barriers to trade between the two countries. Another issue highlighted by Awingobit was the lack of communication and coordination between the two countries regarding border closures. He mentioned instances where Ghanaian goods were held up at the border for extended periods without prior notice, causing logistical challenges for exporters. This lack of transparency and collaboration has hindered trade flows and created uncertainty for businesses operating between Ghana and Nigeria. Furthermore, Awingobit addressed the concerns raised by Nigeria regarding the violation of the ECOWAS Protocol on transit of goods. The agreement stipulates that neighboring countries must ensure that goods in transit are accompanied by escorts to prevent counterfeiting or violations of trade regulations. However, Awingobit emphasized the need for dialogue and mutual understanding between Ghana and Nigeria to address these issues in a diplomatic and professional manner. In response to questions about prior notice regarding Nigeria's border closure, Awingobit highlighted the need for improved communication and coordination between the two countries to prevent disruptions in trade flows. He called for a more collaborative approach that prioritizes the interests of both Ghanaian and Nigerian traders, emphasizing the importance of maintaining strong trade relations within the ECOWAS region. As the debate continues over the impact of Nigeria's closed borders on trade with Ghana, the Importers and Exporters Association of Ghana remains hopeful for a swift resolution to the challenges facing cross-border trade. With calls for increased dialogue and cooperation, stakeholders on both sides are seeking constructive solutions to ensure the continued growth and prosperity of trade relations between Ghana and Nigeria.