By Julius Alabi
The continuous closure of some Nigerian borders with neighbouring Africa countries by the Federal Government is wrecking havoc than doing any good to the Nigerian economy.
Investigation by TheNiche revealed that the current high exchange rate between the Nigerian naira and the United States of American dollars could be connected to the decision of the Nigerian government of not opening all the country’s borders with neighbouring African countries, especially those in the South West.
While some borders have been opened, the federal government has continued to keep the Idiroko border in Ogun State and some others closed.
It was gathered that the country has lost over N24 billion on excise and duty fees due to the continuous land border closure in Ogun State alone in the last two years. .
It could be recalled that Nigeria closed its land borders in August 2019, with neighbouring Benin, Cameroon, Chad, with all business activities and importations/ expectations of goods along these borders were halted.
To further worsen the situation, the Federal Government in November 2019, through the Nigeria Customs Service,(NCS), directed that petroleum products should not be supplied to fuel stations within 20km of the border towns.
This action it was learnt, further wrecked more damage on the Nation’s economy, as it dealt a devastating blow on the naira and purchasing power.
However, President Muhammadu Buhari on December 16, 2020, opened the land borders at Seme, Illela, Maigatari, and Mfun, while the Idiroko border in Ogun State remained closed.
Our correspondent’s investigation revealed that the continued closure in the state has dealt a huge blow on the revenue which FG generates from the import duties and seizures.
According to the Nigerian Customs Service (NSC), revenue generated at the Idiroko border alone before the closure of the border, hit one billion naira mark monthly.
For instance, the NCS, Ogun Area Command, generated N3.3bn revenue in the first quarter of 2019.
The revenue showed an increase by N1.9bn when compared to the fund raked in the first quarter of 2018.
Also in May 2019, the Ogun Area command of NCS generated N1.1billion revenue.
At the time the land border closure was announced in August 2019, the NCS also unbundled its Ogun State Command, splitting it into two (Ogun Area 1 and Ogun Area 2).
While Ogun Area 1 oversees the regulation and enforcement of all import, export, and anti-smuggling-related activities in the state with its headquarters at Idiroko, Area 2 focuses on the responsibilities of enforcing and regulating all Excise, Free Trade Zone, and Parcel Post related activities.
It was gathered that the development has continued to affect the FG’s revenue, most especially the fund being generated through import, export, and anti-smuggling related activities in the state.
The command also generated N15.2m from the auction sales of seized petroleum products and scrap metals between January and June 2021.
Last month, students in the state asked the Buhari-led Federal Government to reopen land borders in the state because it had “exceeded its relevance.”
“We urge the Federal Government to reconsider the closure of Ogun State land borders. The closure has exceeded its relevance and the negative effects are showing in the economy and living conditions of the good people of Ogun State,”
Damilola Simeon, the Chairman of the National Association of Nigerian Students (NANS), said: the continuous border closure has led to collapse of companies and joblessness.
Jare Oyesola, the President of Abeokuta Chamber of Commerce and Industry, Mines and Agriculture (ABEOKCCIMA), noted that the continuous border closure has impacted negatively on businesses “in Ogun border towns in particular and Ogun State in general.”
According to him, a number of companies have folded up, thereby increasing the unemployment rate in the state.
Oyesola particularly said the FG is equally losing huge revenue to the continued border closure in the state.
He said: “By doing so they have ruined many of our Small and Medium Scale Enterprises and impoverished our people. Actually, we are dependent on the Republic of Benin for the market of the whole of West Africa. Unfortunately, people don’t realize that all this fall in the Naira is a result of this kind of decision made by the Federal government.
“Gradually, the Naira is being forced to be at par with the CEFA because of this decision of the Federal government but they are chasing the shadow by killing our people, making our exports impossible and therefore creating joblessness in Ogun State and Ogun Central in particular.
“I am not particularly happy about that policy, I have reported to our Senator and he took action and that was why one of the borders was opened but like you mentioned those that relate to us have not been opened; it is unfortunate. By closing the border they have reduced not only our own revenue but the Federal government’s revenue because all these borders that are closed are generating revenue. How could we have improved the naira when you close borders, you don’t want to do international trade and you want your currency to be strong.
“I don’t know what those who are in power are thinking but they are making business difficult for those who are manufacturing here,” he added.