INFORMAL CROSS BORDER TRADE NIGERIA – 2013/14 ESSD – CBN – Mohammed Tumala
Discussion Outline
1
Motivation and Objective
2
Approach and Findings
3
What Next?
Motivation 1
2
3
3
Sub-Saharan Trade still
ECOWAS Group
Border
BOP Reporting
active
finds growing
Communities
with Current
trade volume
dependent on
account data
The trade tradition has continued. The ECOWAS is also promoting free movement of persons, goods, services, and capital within the sub-region. The bulk of the transactions on duty free goods are not of primary concern to the customs authority and therefore
ECOWAS-WAMA (integration) established a BOP compilation Harmonization Group which found that "goods traded with immediate neighbours that are transported by road and relevant to inter ECOWAS trade goes largely unrecorded because much of it does not
trade
gaps
These communities are
Nigeria has over 2500
inhabited by peasants, herders,
miles of land border with
and informal/micro business
four countries (Cameron,
operators involved in staple
Chad, Niger, and Benin
foods exchange which goes
Republic). ECOWAS Group
mainly unrecorded by the
observed growing volume
customs authority.
of trade with no corresponding data.
Objectives 2
1 BOP Objective
Knowledge of Items of Trade
The Statistics Department of the Central
Identify the category of
Bank of Nigeria compiles the BOP for Nigeria,
commodities of trade and how
and the ICBT study was undertaken to close
these are ferried across the
data gap in the current account. Specifically
borders.
to Estimate quarterly value of informal/unrecorded trade between Nigeria
Approac h Step One
Step Two
Step Three
Reconnaissance visits to border
Data collection: 7 days
Data processing: cleaning,
communities, selection of sixteen
(continuous) in each month of
analysis, report writing.
(16) active border sites between
June 2013 to May 2014. The
Stakeholder engagement and
Cameroon, Benin Republic, and
starting dates in each month
report dissemination. It should be
Niger. Identification of monitors.
were randomly selected.
noted that stakeholders were
Some borders in the northeast of the
Paying attention to: Units and
engaged from conception to
country (mainly with Chad and
Prices! Monthly visits to sites to
dissemination. Aa Inter Agency
Cameroun) were excluded in view of
monitor and retrieve records
Technical Group coordinates the
the active insurgents’ activities in those locations.
2013
BOP compilation and data
2013/14
harmonization. 2014/2015
Findings – Total trade – N1,090.89 billion ($6.91 billion) 1,200.00
Total trade was N1,091 billion or $6.91 billion
1,000.00
N825.74 billion or 75.7% on Food
800.00
N557.68 of N825.74 billion on Food within ECOWAS Region N139.37 is non-food
600.00
400.00
200.00
-
To tal Trade
Import
Export
Veg. & Animal Prod. & Food stuffs
ECOWAS - Veg. ... & Food stuffs
Findings – Total Exports – N435.28 billion ($2.76 billion) N435.28 Billion Exports
N33.31
74.31
327.66 Cameron
Benin Republic
Niger
Findings – Total Imports – N655.61 billion ($4.15 billion) N655.61 Billion
Imports
N59.54
94.96
501.12
Cameron
Benin Republic
Niger
Findings – merchandise trade estimates
Quarter
2013:Q3
2013:Q4
2014:Q1
2014:Q2
Total Export (N'Millions)
49,069.42
249,861.90
78,714.52
57,632.23
Total Imports (N'Millions)
169,968.66
140,915.72
138,144.34
206,583.78
Findings –items of trade Total Trade in N'Billions Product Category Vegetable Products Animal and Animal Products Transportation Equipment Foodstuff Textile Products Machinery and Equipment Chemical and Allied Products Mineral Products Raw Hides, Skins and Leather Wood and Wood Products Plastic and Rubber Products Metal Products Footwear and Headgear Miscellaneous Products Stone and Glass Total
Exports 295,710.60 4,008.83 684.58 32,450.78 28,165.60 24,759.32 13,536.72 18,070.00 303.54 7,781.69 2,787.73 3,302.36 1,621.53 1,701.39 393.42 435,278.09
Imports 322,560.75 133,898.70 92,637.43 37,109.80 18,741.41 11,620.16 21,104.88 2,285.28 9,437.86 360.94 4,664.99 176.17 661.34 341.05 11.76 655,612.52
Total Trade 618,271.34 137,907.53 93,322.01 69,560.58 46,907.01 36,379.47 34,641.61 20,355.28 9,741.39 8,142.62 7,452.72 3,478.54 2,282.87 2,042.44 405.18 1,090,890.59
Share in Total 56.7 12.6 8.6 6.4 4.3 3.3 3.2 1.9 0.9 0.8 0.7 0.3 0.2 0.2 0.0 100.0
Findings – Every food item in the market were traded Live animal & products (goats, sheep, cows, camels, chickens, eggs, meat, etc.); Grains (millet, maize, sorghum, rice, wheat); Beans; Sesame Seeds; Vegetables (veg. leaves; onions, Moringa leaves, Cabbage, potatoes, tomatoes, etc.); Yam/cassava & flour; Cooking Oil; Sugar; Fruits (Dates, oranges, banana, Plantain, apples, pineapple, etc.), Kolanuts, Bread; Fish; Groundnuts; Soya Beans; Beverages; Tiger Nut; Garlic; Semovita; Spaghetti; Ginger; Noodles; Cotton Seed, bread; Sugarcane, Pumpkin, Cashew Nuts; Cheese Balls; Coconut, Tea; Shear Nut; Cocoyam; Herbal Products; Watermelon; Ice block, Water; Grasshopper, Tobacco leaf;
Way Forward – Policy Developments 1. This study was not repeated because of insecurity. Niger Republic showed interest in collaboration in future studies. 2. BOP compilers monitored the importation of key food items by neighboring countries against their food demand. Substantial part of these imports ended up in the Nigerian markets. This had informed trade policy actions by Nigeria. 3. Promotion of local production of Rice and Maize in Nigeria – 2015 - 2017 recorded substantial growth in rice importation to Nigeria mainly through the Benin/Niger borders. This affected local production.
Way Forward – Policy Developments 4.
In 2019 Afreximbank funded UNECA to conduct a one-year pilot project to collect data on ICBT along the Abidjan-Lagos corridor of West Africa as part of the implementation of AfCFTA. The project was conceived to provide a framework for a national, regional and continental policy by identifying the scale, magnitude and characteristics of informal cross-border trade in the continent.
5.
The Continental Methodology for ICBT Data Collection in Africa has been developed by the African Union Commission following this project and the decision of the third AU Extra-Ordinary Special Technical Committee on Finance, Monetary Affairs, Economic Planning, and Integration.
6.
Nigeria participated in the finalization of the ICBT draft report which included institutional arrangements for ICBT. Future ICBT data collection will follow the methodology to be issued by the AU.
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