Nigeria's Border Closure: Implications for Africa Continental Free Trade Area Agreement

Abstract

African Continent Free Trade Area Agreement (AFCFTA) has long been considered as a mechanism for accelerating economic growth and engendering visible reductions in income inequality. Trading activities under the AFCFTA arrangement was expected to kick start in July 2020 but recent developments suggest that the implementation may be slowed down. The closure of Nigerian border barely 3 months after signing the pact is an indication of the low level of preparedness and commitments by most member states. The argument in favour of the border closure is further strengthened by the current reality of Coronal virus pandemic which suddenly hit the world's population. Moving forward, Nigeria's actions render the seriousness and prospects of regional integration in Africa a little doubtful. Apart from diverting focus from areas that can enhance free trade agreement such as trade data capture, transportation infrastructure, and border protection, the Nigeria's border closure may dampen the enthusiasm of other countries towards the free trade deal. The effect of the land closure placed a downward strain on the national income and GDP of Nigeria's neighbouring countries particularly Benin republic, Niger republic, Cameroun and Ghana. As a way forward, AFCTA should encourage member countries to diversify and specialize in the production of goods for which they have comparative advantage in order to deepen intra-African and intra-regional trade and for participating countries to benefit from economies of scale.