Scores of Nigerian trucks trapped at the border between Togo and Benin Republic when the Truck Levy was first introduced in June

Strong indications emerged that there might be no respite yet for Nigerian businesses ahead of the January, 2022 proposed reopening of all land borders by the member states of the Economic Community of West African States ECOWAS. This is given the decision of the authorities in the Republic of Benin to retain the obnoxious 9million CFA, (which is equivalent of about N7million) Truck Transit Levy per every Nigerian truck moving across the country’s territory to and from Ghana.

Recall that the Federal Government of Nigeria had in August 2019 shut all the country’s land borders with neighbouring West African countries over worsening insecurity across the country, especially the northern region, which was believed to be partly fuelled by the booming illicit trade in arms and light weapons.

Many other ECOWAS countries had also shut their land borders as part of measures to curtail the spread of the COVID-19 pandemic, some of which had been opened since January this year, which prompted the ECOWAS Commission to set a deadline of January 2022 for all land borders to be opened.

Authoritative sources close to the Manufacturers’ Association of Nigeria MAN, disclosed that the mandatory levy imposed since June 8, 2021, was retaliatory against Nigerian firms in response to the closure of the country’s land borders, which many of her West African neighbours protested to no avail.

The sources told our correspondent that the imposition of the arbitrary charge paid per Nigerian truck moving the country’s territory was imposed in addition to the payment of import duty and other statutory cross-border payment, which many have viewed as anti-trade and economic sabotage against the Nigerian state.

“All our members have rejected the payment and the ECOWAS is aware of this. We have also decided to ship all our consignments to and from Ghana through the seaports, which is more expensive but we will continue with this until the issues are resolved”, the sources further revealed.

It was also gathered that the imposition of the obnoxious levy and the attendant higher cost of operation through the movement of their consignments by sea has further worsened the plight of these Nigerian businesses, many of which are struggling with very poor operating environment occasioned the dwindling value of Nigeria’s currency, the naira against other global currencies, poor infrastructure and overall dwindling profitability.

Experts have argued that urgent steps should be taken towards convincing the government of Benin Republic to scrap the obnoxious levy, which might inhibit regional trade and integration and therefore make a mess of the African Continental Free Trade Agreement AfCFTA, which is still at its rudimentary stage.

Recall that the ECOWAS Commission in collaboration with the West African Health Organisation WAHO had organised a Sectoral Ministers virtual meeting on the reopening of land borders in the region to facilitate the free movement of persons.

The Sectorial Ministers in charge of Regional Integration, Interior, Trade, Health, Transport and Finance from member states of the ECOWAS had on December 6, 2021, held a virtual meeting, where they deliberated on the measures to ensure the coordinated, safe, secure and orderly reopening of land borders within the region.

The Ministers also validated the report and recommendations made by technical experts which outlined the essential practical modalities to be put in place for the implementation of the ECOWAS COVID-19 directives on hygiene measures for the gradual and coordinated reopening of borders.

ECOWAS and the West African Economic Monetary Union WAEMU, through their member states, have expressed commitment to the reopening of borders to facilitate the movement of people and goods, and to define measures to revive regional trade and supply chains between member states.

It is believed that the gradual reopening of the borders already begun by the states including Nigeria, requires good coordination between the states and the land-based actors in charge of border control in order to apply the community texts on the free movement of people and goods in the context of the existing health and security crisis.

Experts have therefore expressed concerns that this imposition of arbitrary transit charges by the Republic of Benin authorities targeted against some member states, especially Nigeria might negate all these lofty ideals of the commission geared towards regional integration and free movement of goods and persons, which is counterproductive.

Recall that the 59th Ordinary Session of the ECOWAS Authority of Heads of State and Government charged the ECOWAS Commission to work with member states and the WAHO on the modalities to accelerate the reopening of land borders in a safe manner during the pandemic in line with the agreed ECOWAS Harmonised Guidelines for the free movement of people and goods.