Nigeria has witnessed a remarkable increase in export volumes to the Niger Republic in the second quarter of 2024, following the reopening of borders—a decision made by President Bola Tinubu in March amidst political tensions stemming from a coup in Niger.
Data from the National Bureau of Statistics (NBS) shows that Nigeria’s exports to Niger Republic surged by 204 per cent, rising from N6.72 billion in Q1 2024 to N20.46 billion in Q2 2024. This significant change comes after a period of limited cross-border trade due to political instability in Niger.
Niger now stands as Nigeria’s 8th largest trading partner in Africa, contributing to 0.87 per cent of Nigeria’s total export volume in Q2 2024, up from just 0.30 per cent in the previous quarter. This surge in exports is closely tied to the reopening of borders, which had been closed due to security concerns following the coup, which had destabilized the region.
The border closure was aimed at managing the political crisis and curtailing smuggling, but it severely restricted legitimate trade and negatively impacted Nigeria’s export activities in the area.
The Q2 2024 figures indicate a revival in trade, especially in non-crude oil exports, as Niger predominantly imports agricultural products, manufactured goods, and other non-oil commodities from Nigeria. Unlike larger African economies such as South Africa and Ivory Coast, which heavily depend on Nigerian crude oil, Niger’s economic ties with Nigeria focus on a diverse range of goods to meet local demand.
In March, President Bola Tinubu ordered the immediate reopening of Nigeria’s land and air borders with Niger and lifted other sanctions against the country. This decision was confirmed in a statement by the former Special Adviser to the President on Media and Publicity, Ajuri Ngelale, on March 13, 2024.
Following the announcement, the minister of transportation, Senator Said Ahmed Alkali, reported that Nigeria secured $1.3 billion in financing to complete a railway line connecting Kano, the largest city in northern Nigeria, to Maradi in Niger. This project will be funded primarily by the China Civil Engineering Construction Company (CCECC), which will cover 85 per cent of the costs, with the remaining 15 per cent funded by the African Development Bank (AfDB).
However, the construction of the Kano-Niger rail project is expected to lead to significant displacement, according to a report by Environmental Resources Management (ERM) and EnvAccord Limited, commissioned by the Africa Finance Corporation (AFC). The report estimates that the project will result in the loss of approximately 12,695 residential homes and 2,064 additional assets across several northern Nigerian states.
