Importers in Nigeria have expressed their concern over the exorbitant charges imposed by the government of Benin Republic on transit cargoes bound for Nigeria, leading to a significant drop in cargo importation through the Seme land borders. Nigerian importers currently pay about CFA2.2 million as charges on 40ft transit containers, while neighboring countries pay only CFA500,000 for the same consignment.
The retaliatory policies introduced by the Benin Republic government in response to Nigeria’s border closure in 2019 have resulted in a 23.09% decrease in trade between the two countries in the first quarter of 2023 compared to the same period in 2022. The Benin Republic’s high charges on Nigeria-bound transit cargoes and ECOWAS Trade Liberalization Scheme (ETLS) cargoes have made intra-African trade more expensive, violating the trade protocol of the Economic Community of West African States (ECOWAS) trade scheme.
Customs data shows that revenue from imports at the Seme Border Command has decreased, and the number of export cargoes has also dropped significantly in the first quarter of 2023. The charges on 40ft transit containers in Cotonou, Benin Republic, have burdened Nigerian importers, as they end up paying twice, once in Cotonou and again at the Seme border.
Industry stakeholders have called on the Nigerian government to engage with the Benin Republic government and address the high administrative charges on Nigeria-bound transit cargoes. They highlight that while Niger Republic pays CFA500,000 to CFA600,000 for 40ft transit containers, Nigeria is charged CFA2.2 million, causing a significant decrease in cargo volumes at the border.
The devaluation of the Nigerian naira has also made importation through land borders unattractive, further contributing to the decline in cargo volumes. Multiple security checkpoints at the border have also been cited as a hindrance to transborder trade, with allegations of extortion rather than effective monitoring of smuggling activities.
Importers and industry stakeholders hope that the new Nigerian government will engage with Benin Republic to address the challenges and improve trade relations, fostering a more conducive environment for cross-border trade and economic cooperation.
