Connect with us

Business

Nigeria’s Border Closure: The Pains, Gains, Challenges

Published

on

Nigeria shares international boundaries with the Republic of Benin to the west, Cameroon and Chad to the east and Niger, to the north.
Apart from these official borders, the Nigeria Immigration Service (NIS) says more than 1,400 illegal border routes exist in the country as smugglers routes, creating security challenges.
The former comptroller-general of the service, Mr David Parradang, says that although the country has only 84 approved land border control posts, there are also more than 1,400 illegal borders in the country.
But Nigerian authorities note that the porous borders have resulted in crisis in economic sector that has been affecting the development of the country.
So, in August, Nigerian authorities announced and enforced the closure of its border with the Republic of Benin.
The operation under the codename “Ex-Swift Response” was a collaborative security operation involving the Nigeria Immigration Service and Nigeria Customs Service together with Nigeria Police Force and the Armed Forces.
President Muhammadu Buhari attributes the partial closure of Nigeria’s border with Benin Republic to the massive smuggling activities, especially of rice, taking place on that corridor.
He expresses great concern over the smuggling of rice, noting that it threatens the self-sufficiency already attained due to his administration’s agricultural policies.
Similarly, the Comptroller-General of Nigeria Customs Service, retired Col. Hameed Ali, says that the closure of Nigeria’s borders was undertaken to strengthen the nation’s security and protect its economic interests.
Ali also observes that closure would stem the influx of smuggled goods, especially rice and tomatoes into the country, insisting that the closure has significantly increased revenue from import duties.
However, while the government claims to have acted in the best interests of the economy and Nigerians, some Nigerians and citizens of neighbouring countries most affected by the closure, continue to express worry about it, calling for an immediate reopening of the borders.
Some economists believe that the decision to close the nation’s land borders could be painful to the concerned neighbouring countries, considering the relationship with them.
According to them, one of the immediate gains of the closure could be a stop to the dumping of goods from European markets in Nigeria.
They are of the opinion that the action would go a long way in protecting our local manufacturers and producers.
They describe it as policy that would address and redefine relations with our neighbours in a win-win situation.
But critics insist that border closure is an economic aberration as most countries don’t usually close their borders for trade-related reasons.
According to them, the closure has the potential to disrupt the economic lifelines of many traders who depend on legitimate cross-border trade.
Irrespective of this, Emir of Kano, Sanusi Lamido Sanusi, says that the decision to close border is part of the measures to preserve foreign policy in the national interest.
“Last time, I was critical of Nigeria’s refusal to sign the African Continental Free Trade Agreement (ACFTA) and recently I have been in support of the decision to close the border.
“Nigeria is 70 per cent of the population of West Africa and if we have an industrial policy that is aimed at protecting the productive sector of Nigeria, it is a fair competition.
“We cannot allow our neighbours to open their doors to this unfair competition and through the back door undermine our industry.
“It is not about smuggling petroleum or rice; but in 2017, the Republic of Benin was the world’s second largest importer of tramadol, an opioid pain medication that is being abused, to U.S.
“So closing the borders, I hope is not a permanent solution but what I hope is that is an opportunity to sit down and agree on rules and then open up the borders.
“It is extremely important to have a Foreign Policy that is ready to take very firm decision to protect the national interest against dangerous trade activities,” Sanusi observes.
Sharing similar sentiments, Ghana’s former President, John Mahama has lauded the creation of a joint-security taskforce on the borders of Nigeria but warns that the continued delay is harming the economies of the West African region.
Mahama believes that the greatest volume of trade in West Africa takes place in the Lagos – Abidjan corridor.
“I believe that an ECOWAS meeting of the Heads of States should discuss the issues and it could lead to the resolution of the problem.
“So, closing your border is the simplest thing to do; any country can say I’m closing my border to imports from my neighbours, but it doesn’t help to build the kind of integration we are trying to build in West Africa,” he said.
He also expresses the fear that by the time the borders are re-opened, some businesses that rely on each other’s export may have collapsed.
Economists note that one of the immediate consequences of Nigeria’s action is the backlash it will have on Nigerian traders in Ghana.
They allege that more than 400 shops owned by Nigerians have been closed for flimsy excuses that were, hitherto, overlooked.
Nigeria Union in Diaspora also alleges that Nigerian traders in Accra are being harassed and victimised.
In spite of this, authorities in Nigeria, having observed the encouraging changes in the economy, recently foreclosed re-opening of the nation’s borders.
For instance, the Federal Government says 95 per cent of arms and ammunition inflow to Boko Haram insurgent group, kidnappers, killer herdsmen and bandits has gone down considerably.
Minister of Information and Culture, Lai Mohammed, says border closure against importation of foreign goods and illegal immigrants will remain, observing that 296 illegal immigrants have been arrested.
According to him, the decision to close the borders is taken to secure the country which has been confronted by numerous trans-borders economic and security challenges.
“These challenges range from banditry, kidnapping, smuggling, illegal migrants and proliferation of light weapons, among others.
“The preference for foreign goods, especially food items such as rice, has continuously impoverished our farmers and adversely affected domestic government policies supporting the agricultural sector to enhance food security.
“It is, however, disturbing that some neighbouring countries circumvent the ECOWAS protocol on transit.
“ECOWAS protocol on transit demands that when a transit container berths at a seaport, the receiving country is mandated to escort same without tampering with the seal to the border of the destination country.
“Experience has shown that our neighbours do not comply with this protocol. Rather, they break the seals of containers at their ports and trans-load goods destined for Nigeria,” he said.
The minister, who expresses satisfaction with success so far recorded by the joint task force, observed that the singular decision has reduced importation of foreign goods, increased revenue generation and enhanced security.
“On the economy, the partial closure of the borders has curbed the smuggling of foreign rice into the country, in addition to other prohibited items.
“Our series of interactions and engagements with Rice Miller Association of Nigeria since the commencement of this exercise has shown that the border closure has enhanced more production and milling of Nigerian rice.
“Patronage of local rice has increased and farmers are expanding their farms as well as engaging more hands.
“Border closure has also impacted positively on revenue generation which in turn will be used to build more infrastructures and develop critical sectors of the nation’s economy.
“The border closure has also curbed diversion of petroleum products from Nigeria to neighbouring countries,” he said.
Mohammed says further that 95 per cent of illicit drugs and weapons that are being used for acts of terrorism and kidnapping in Nigeria is through porous borders.
“Our conclusion is that the arms and ammunition these terrorists and criminal elements are using no longer gain access into the country.
“The drugs which affect the health and wellbeing of Nigerians have equally been reduced,” the minister said.
He assures the public that government, through diplomatic channels, would continue to engage the nation’s neighbours to agree to comply with the ECOWAS Protocol on Transit.
According to the minister, goods that are on the prohibition list to Nigeria, such as rice, used clothing, poultry products and vegetable oil, should not be exported to the country.
He also notes that the closure has provided a unique platform for the various participating agencies to jointly operate together, thereby strengthening inter-agency collaboration and reducing animosity.
He insists that the purpose of border closure is to promote a secure, peaceful and prosperous Nigeria.
Mohammed, therefore, calls on all Nigerians to be patriotic by patronising local rice to help the country to attain self-sufficiency in local rice production and boost the economy.
Enehikhuere writes for News Agency of Nigeria

 

By: Julius Enehikhuere

Continue Reading

Business

NEM Insurance celebrates IWD 2026 with pledge to sustain support for women endeavour

Published

on

NEM Insurance Plc – the number one motor insurance provider in Nigeria, in a vibrant commemoration of the 2026 International Women’s Day (IWD), has reaffirmed its dedication to fostering an inclusive environment that empowers women to excel in their endeavours.
Speaking at the corporate headquarters in Lagos, the Chairman of NEM Insurance Plc, Tope Smart, stated that the company remains resolute in its mission to support women affairs, noting that their contributions are vital to the sustainability of the insurance industry.
Aligning with the global theme “Give To Gain,” Smart highlighted that the insurance provider views gender diversity not just as a corporate social responsibility, but as a core driver of innovation and high-level performance.
“Our commitment to female professionals at NEM Insurance is unwavering,” Smart declared. “We recognize that by ‘giving’ women the right tools, mentorship, and leadership platforms, the industry ‘gains’ unparalleled dedication and diverse perspectives that move the needle of progress.”
The multiple award winning underwriting company and one of the top three leading general insurance business companies in Nigeria, has remained focused in promoting and supporting women affairs.
Adding her voice to the celebration, the General Manager, Corporate Services, Mrs. Mojisola Teluwo, emphasized that the company’s gender-focused initiatives, such as the “She Means Business” contest, represent a practical approach to inspiring inclusion.
Mrs. Teluwo maintained that supporting women-led initiatives is a strategic investment in the fabric of society, rather than just a philanthropic gesture.
“At NEM Insurance, we believe that when a woman thrives, a family thrives, and the nation prospers,” Mrs. Teluwo stated. “The ‘She Means Business’ initiative is our way of moving beyond mere applause for women toward active, tangible support. We are proud to provide the financial catalyst needed for visionary women to turn their business aspirations into reality.”
To mark the occasion, the leadership outlined several key pillars of support:
Leadership Development: Targeted training programs to prepare more women for executive-level decision-making.
Inclusive Work Culture: Sustaining a workplace environment that balances professional growth with personal well-being.
Economic Catalyst: Providing grants and professional frameworks to help female entrepreneurs upscale their operations.
The event featured a series of internal sessions where female staff engaged in mentorship dialogues, focusing on career advancement within the evolving landscape of the Nigerian insurance sector and paint and Sip, which provided an opportunity for women to showcase their creativity.
Smart concluded by urging other industry stakeholders to prioritize the development of female talent, asserting that a more inclusive sector is a more prosperous one for all Nigerians.
Continue Reading

Business

Nigeria: Profit-Taking Persists as NGX Dips Marginally by 0.2%

Published

on

Trading on the Nigerian Exchange (NGX) closed slightly lower on Wednesday as profit-taking in selected equities continued to weigh on the market, dragging key performance indicators into negative territory.
Market data showed that the benchmark All-Share Index (ASI) declined by 0.09 per cent to close at 195,898.53 points, compared with the previous session’s level, as investors booked profits in some large and mid-cap stocks.
Consequently, market capitalisation shed N107.57 billion, settling at N125.75 trillion. Despite the marginal decline, the market still maintained positive returns, with the month-to-date gain standing at 1.6 per cent, while the year-to-date return moderated to 25.89 per cent.
The downturn was largely driven by losses recorded in stocks such as Presco Plc and UAC of Nigeria Plc, both of which declined by 10 per cent, alongside Dangote Cement Plc, which slipped by 0.6 per cent.
Market breadth closed negative, reflecting bearish investor sentiment, as 40 stocks recorded losses compared with 29 gainers, translating to a market breadth ratio of 0.7 times.
Among the top gainers were NGX Group Plc and Premier Paints Plc, which appreciated by 10 per cent and 9.9 per cent respectively. Other notable gainers included Omatek Ventures Plc, Prestige Assurance Plc and HMC Allied Plc.
On the losers’ chart, Presco Plc and UAC of Nigeria Plc led the decline with 10 per cent losses each, followed by Morison Industries Plc, LivingTrust Mortgage Bank Plc and SCOA Nigeria Plc.
Sectoral performance was mixed, with the Industrial Goods index leading the gainers after advancing by 1.42 per cent, while the Banking index recorded a marginal gain of 0.04 per cent.
Conversely, the Commodities sector topped the laggards, declining by 1.30 per cent. The Insurance index fell by 0.44 per cent, the Consumer Goods index dipped by 0.43 per cent, while the Oil and Gas index edged down by 0.06 per cent.
Activity level on the exchange weakened as investors traded a total of 671.27 million shares valued at N26.13 billion in 58,792 deals.
This represents a decline of 8.61 per cent in volume, 5.18 per cent in value and 9.31 per cent in the number of transactions compared with the previous trading session.
Wema Bank Plc emerged as the most actively traded stock by volume and value, accounting for 106.36 million shares worth N2.75 billion.
Analysts said the cautious mood in the market reflects continued portfolio rebalancing by investors following the strong rally recorded earlier in the year.
They noted that trading may remain mixed in the near term as investors react to corporate earnings releases and macroeconomic development.
Continue Reading

Business

Wema Bank Admits 10 Startups into Hackaholics 2026

Published

on

Wema Bank has admitted 10 Nigerian startups into the 2026 edition of its Hackaholics Accelerator Programme as part of efforts to strengthen innovation, entrepreneurship, and sustainable business growth in the country.
The 10 cohort selected startups for the 2026 edition such as; Farmslate, Ploy, Stocmed, Feest , Varsityscape, MamaAlert, Sane, Cyclex, Kieva and Loocomo were drawn from the top performing finalists of Hackaholics 6.0.
The Hackaholics Accelerator, a selective growth programme under the bank’s Hackaholics platform, is designed to help promising startups reinforce their business foundations while preparing them for scalable growth and investment readiness.
Wema Bank said the programme represents a strategic expansion of its support for innovators, moving beyond ideation and competition to hands-on startup development after six years of driving innovation through the Hackaholics initiative.
According to Wema bank, the accelerator provides founders with structured mentorship, industry guidance and access to networks required to transform innovative ideas into viable and scalable businesses.
Speaking at the programme, Managing Director and Chief Executive Officer of Wema Bank, Mr. Moruf Oseni, said the accelerator demonstrates the bank’s commitment to supporting founders beyond the early stages of innovation.
He noted that Hackaholics has evolved from a competition into a platform that showcases Nigeria’s entrepreneurial potential and technological creativity. Where he explain that the second edition of the accelerator focuses on helping founders transition from ideation to building sustainable business capable of long trem projects .
“Over the past six years, Hackaholics has grown into more than a competition; it has become a platform that reveals the depth of innovation and entrepreneurial potential that exists across Nigeria,”Oseni said.
Oseni stressed that the startups selected are representing some of the most promising solutions emerging from the Hackaholics ecosystem, and the back remain committed to helping them refine their business models, strengthen their operational foundations, and scale their impact.
Also speaking at the program , Wema Bank’s Chief Transformation Officer,Mr. Babatunde Mumuni, said the accelerator would guide founders through a structured process aimed at strengthening their operations and positioning them for sustainable growth.
As part of the programme, startups founders will participate in intensive training sessions facilitated by industry experts across key areas of business growth. Facilitators include Wema Bank executives such as Chief Transformation Officer, Babatunde Mumuni; Head of Strategy and Investor Relations, Femi Akinfolarin; Head of Data Transformation, Olamide Jolaoso; and Team Lead, Corporate Social Investment, Oluwatoyin Adetunji. While External facilitators include Managing Director of Impact Hub Lagos, Idowu Akinde; Managing Director of B4B Partners, Napa Onwusa; startup advisor and scout, Onaopemipo Dara; Google for Startups mentor, Rosemond Phil-Othihiwa; Head of Growth at Africhange, Tega Ogigirigi; and startup advisor and mentor, Ademola Adewuyi.
The Hackaholics Accelerator is also supported by Wema Bank’s broader innovation ecosystem, including IDEAx Labs, the bank’s innovation and venture platform, and its corporate venture programme focused on enabling startup growth through partnerships, infrastructure and access to capital.
Since its launch in 2019, Hackaholics has grown into one of Nigeria’s leading youth innovation platforms, attracting more than 15,000 applicants and supporting hundreds of digital solutions across multiple sectors.
Through the initiative, Wema Bank said it has disbursed more than $400,000 in funding to young innovators and startup founders nationwide.
Previous participants such as Feegor, Myitura and Bunce have emerged from earlier editions of the programme, highlighting the accelerator’s focus on nurturing growth-ready companies. Meanwhile the 2026 edition builds on this progress by supporting startups as they transition from innovation to sustainable business growth.
Continue Reading

Trending