Assessing Frictions Within The Ecowas Free Trade Protocol. The Case Study Of The Nigerian Border Closure On Trade Relations With Ghana

Abstract

The research was aimed at assessing the frictions within the ECOWAS Free Trade Protocol, with a focus on the closure of the Nigerian boarder to trade relations with Ghana. A sample size of 10 Executives of GUTA and GEPA officials were interviewed. The research had three key objectives, and these were to identify the consequences of the border closure on Ghana’s trade sector, to examine the effects and implications of border closure on Ghana’s trading with Nigeria and to evaluate the lessons drawn from the closure of the border. For the first objective, the study findings indicated that, the Nigeria Border closure had had an adverse effect on ECOWAS Free Trade Policy. This study found out that again, the primary cause for the 28-days closure of Nigeria Border, was to stop the illegal importation of smuggled rice from Benin to Nigeria as well as the importation of other goods. The findings stated that, instead of the border closure to all, it could have been limited to a total ban of goods from Benin. The study’s second objective focused on the effects and implications of the border closure on Ghana’s trade sector. In assessing the effects and implications, findings pointed out that, there were several negative impact and implications for the Ghanaian trade sector. Some included low revenue, job loss and low trade flow. The third and final research objective of the study focused on the lessons learnt from the Nigeria border closure. The findings pointed out that, the Nigeria border closure had had a bad effect on ECOWAS free trade policy and Nigerians could have ban importation from Benin and dealt with only Benin instead of closing its border to all countries. It has also been learnt that Ghanaian traders must diversify its business market and not rely too much on Nigeria. Additionally, there is the need for regular consultation between Nigeria and Ghanaian authorities to ensure that, in the event of a future border closure, there would be another route for Ghanaian products to be allowed into the Nigeria market with proper labelling. Lastly, Nigeria must come out clear if they want to be part of the ETLS or not. The study therefore recommended that, ECOWAS states must respect all provisions in all protocols that they have signed unto at all times. The ECOWAS Commission should take advantage of this issue and embark on an intensive education for all its members on the provisions of the ELTS. Additionally, the ECOWAS commission should be bold enough to crack the whip in such instances to ensure that, this border closure that not repeat itself. Lastly, the ECOWAS Commission must initiate a dialogue which will end up in the signing of a trade treaty between Nigeria and Benin.