ASSESSING THE ECONOMIC AND FINANCIAL IMPLICATIONS OF THE NIGERIA-NIGER BORDER CLOSURE: A COMPARATIVE ANALYSIS OF TRADE AND GROWTH DYNAMICS

Abstract

This study aims to assess the economic and financial implications of the Nigeria-Niger border closure, focusing on trade and growth dynamics. The primary objective is to analyze the economic consequences of the border closure and provide actionable policy recommendations to enhance trade resilience and financial stability. The research addresses the problem of disrupted cross-border trade, heightened inflation, declining customs tariff revenues, and increased strain on financial systems resulting from the border closure. A qualitative research methodology was employed, utilizing semi-structured interviews with key stakeholders, including government officials, business representatives, and financial institutions operating in border regions. Purposive sampling was used to select 25 participants from both Nigeria and Niger. The findings reveal that the border closure significantly disrupted formal and informal trade, adversely impacting border communities and reducing market access for local producers. Heightened inflation was evident through increased prices of essential goods, supply chain disruptions, and rising transportation costs. Declining customs tariff revenues limited government fiscal capacity, while smuggling activities surged, compounding economic strain. Additionally, financial systems experienced increased pressure, including currency depreciation, reduced trade financing, and rising non-performing loans. To mitigate these challenges, the study recommends fostering regional collaboration to improve border management, developing policies to support border communities and trade-dependent businesses, and strengthening financial systems to withstand shocks. These measures can help address the adverse effects of border closures and promote sustainable economic growth in the region.