Weak ECOWAS agreement frustrating Nigerian traders in Ghana

Janet Ogundepo writes about the life and business of Nigerians living in Ghana and how they fare amid government’s policies.

It was a beautiful evening at the popular Nkrumah Circle, Greater Accra Region, Accra, when the feet of this reporter graced the ever-busy area renowned for sales and repairs of gadgets.

Nkrumah Circle is one of the six traffic interchanges in Accra and it is named after Ghana’s first president and leading figure in the country’s fight for independence from Britain, Kwame Nkrumah.

A huge statue of Nkrumah with a hand raised as a symbol of solidarity is seated in an elaborate water fountain park. This place is known to be the central point in Accra known for its everyday hustle and bustle.

Circle, as it is known for short, is touted to be the hub for the sale and repair of phones, laptops, and other communication accessories.

This place is likened to Computer Village in Ikeja, Lagos State. It is also likely the first place one would be told to see a cluster of Nigerian traders.

Nigerians, as this correspondent learnt, were also found in several popular markets in Accra as the Madina Market, Makola, and Tema, among others.

A narrowed-down search of the stalls of Nigerians led this correspondent to a busy lane called Odo Rice and a street with the name, Tip Toe Lane. Several pockets of shops with several signs and displays of phone and laptop accessories were rife in this area. But none was seen with a name synonymous with a Nigerian.

A cluster of three men conversing in Igbo language in one of the complexes at the far end of Tip Toe Lane brought the long walk and frequent requests to an end.

An importer and retailer of phone and laptop gadgets, Mr Innocent Benjamin, an indigene of Ebonyi State, sat on a plastic stool in front of his office at Tip Toe Lane, Odo Rice, Nkrumah Circle, Accra, conversing in Igbo language with his three other colleagues.

 Benjamin, who is married to a Ghanaian, stated that he left Akure, Ondo State, where he lived and worked for 14 years as a trader in nylon and stationeries, to Ghana when the Chinese company he worked for as a wholesaler left Nigeria for Ghana.

“I’ve been in Ghana since 2016. I came in seven days to the 2016 presidential election,” he gently declared.

On his experience living in Ghana, the phone dealer stated that he experienced “weather, security and business comfort.”

He further noted that asides from the challenges faced during the implementation of the Ghana Investment Promotion Centre Act, Nigerian traders who traded legally and paid their taxes and necessary dues were not harassed or disturbed by trade unions or government officials.

Benjamin added, “Some shops owned by Nigerians were locked for a year and three months. In December last year, some shops were also locked. But some of the shops were reopened when the shop owners took their documents to the Ministry of Trade. We are closely working with the government so that such does not happen anymore.”

Price and market competition were reportedly the reason for the miff between Nigerian and Ghanaian traders.

Benjamin noted that because Nigerian traders bought their goods in large quantities, they sold them at a reduced price than their Ghanaian counterparts.

He said, “Another problem, although not limited to Ghana, is that when business persons conduct their businesses peacefully and pay tax to the government, the government does not support you during a business crisis. For example, when there is a fire incident or flooding.”

He lamented the destruction of his and other traders’ shops and unsold gadgets in an unexpected flood in 2022 without any aid from the government.

“The goods here are currently got on a loan. I hate when I do my business and I have to keep paying interest to someone. I was not the only one affected by the flood but since we pay tax to the government, we are supposed to receive support from the government during a crisis,” he stated.

“We are happy to escape!” were the first few words a Nigerian retailer in computer accessories, identified only as Onyeaka, uttered when he met with our correspondent.

Onyeaka said he came to Ghana to study at the Zenith University, Labadi, Accra, in 2015, but dropped out due to lack of funds.

“There was no support. I was the one paying my school fees, but due to the stress, I had to drop out. Combining study and business here is difficult,” he stated.

Onyeaka, further corroborating Bejamin’s claim, stated that though Nigeria had been exempted from the GIPC Act, the Ghanaian traders did not accept the verdict, which generated a lot of controversies.

“I know of some persons whose shops were closed in December 2020 and some of them, after their documents were assessed and found to be complete, had their shops reopened in November 2022.

“As a result, Nigerian traders are no longer as many and strong as before in the market. Now, we don’t know where we are standing because the government has announced that Nigerians have been exempted but some of the time, traders are still being disturbed,” he added.

The worry lines on Onyeaka remained as he recalled the tales of events such as the 2020 incident that happened to Nigerian traders in the country.

He stated that some shops that had been locked since 2020 were yet to be reopened.

Despite the challenges, Onyeaka doubted his return to Nigeria. He hopes to return to complete his university study someday but in another country of his dream.

The Nigerian traders our correspondent interacted with all admitted that Nigeria had a big market that favoured the fast sale of goods, but lack of basic amenities and recent rising inflation was a deterrent to returning to their country of birth.

Teeming Nigerians in Ghana

Migration and emigration between Nigerians and Ghanaians had existed since Ghana’s independence.

An American intelligence gathering group, The World Factbook, stated that a few years after Ghana’s independence, the country became known for immigration as it attracted labour migrants from Nigeria and other neighbouring countries to mine minerals and harvest cocoa.

In 1960, immigrants were about 12 per cent of Ghana’s population. But the worsening economic and social conditions in the late 1960s discouraged immigration; as a result, hundreds of thousands of immigrants, mostly Nigerians, were expelled.

It added that severe drought and an economic downturn in the 1970s later transformed Ghana into a country of emigration, with Cote d’Ivoire as the initial destination.

Later, hundreds of thousands of Ghanaians migrated to Nigeria to work in its booming oil industry, but most were deported in 1983 and 1985 as oil prices plummeted.

Many Ghanaians reportedly turned to more distant destinations, including other parts of Africa, Europe, and North America, but the majority continued to migrate within West Africa.

In 2019, Ghana’s Foreigner Identification Management Systems revealed that citizens from about 167 countries resided in the country.

Nigerians are not left out. As of June 2020, the United Nations Department of Economic and Social Affairs estimated that 1.7 million Nigerians were in diaspora.

A specialised market and consumer data company, Statista, stated that in 2021, about 77,000 Nigerians lived in several regions of Ghana. Nigerian male and female residents were 50,329 and 26,632, respectively.

The $1m levy

According to the Ghana Investment Promotion Centre Act, 2013 Act 865, Section 28 (Enterprises eligible for foreign participation and minimum foreign capital requirement) subsection two states that non-citizens may engage in a trading (purchasing and selling of imported goods and services) enterprise if they have an investment of not less than $1m in cash, goods or services relevant to the investment.

Due to the implementation of this act, over 600 shops belonging to Nigerians were closed for months in December 2019.

The Nigerian traders were told to pay the $1 million foreign equity/capital base for the Ghana Investment Promotion Council registration.

The shop closures, according to the President of the Nigerian Union of Traders in Ghana, Mr Emeka Nnaji, was an experience they had long endured but resurfaced at intervals.

But Nigeria and Ghana are members of the Economic Community of West African States and are covered by the ECOWAS Promotion of Free Trading Policy.

In August 2020, The PUNCH reported that the Ghanaian Minister of Information, Kojo Nkrumah, defended the imposition of the trade levy on Nigerians, stating that Nigeria had “equally issued executive orders preventing foreigners from getting jobs Nigerians can do.”

He noted that the then closure of the Seme Krake borders in August 2019 by the Nigerian government affected neighbouring countries.

In his response to the shop closure over the non-payment of the trade levy, Nkrumah said, “The compliance exercises conducted in the selected markets revealed gross violations of retail trade laws and regulations by Ghanaians and foreigners, including Nigerians.

 “These violations included tax evasion, immigration offences, trading in substandard products, violation of the Ghana Investment Promotion Centre Law, improper registration of firms, under-payment of business operating permits, falsification of documents, among others.”

In a bid to resolve the issue, the Speaker of the House of Representatives, Femi Gbajabiamila, arrived in Ghana on September 2, 2020, on a “legislative diplomacy” and to meet with the Speaker of the Ghanaian Parliament, Prof. Mike Oquaye.

Sequel to Gbajabiamila’s visit, a statement was issued on September 5 by the Chairman of the House Committee on Media and Public Affairs, Benjamin Kalu, titled, ‘Ghana to Consider Resolutions from Legislative Diplomacy in Resolving Trade Dispute – Ghana’s President Akufo-Addo tells Gbajabiamila… as Nigeria’s Speaker Makes Case for the Amendment of Ghana’s GIPC Act.’

The President of Ghana was quoted to have said that Gbajabiamila’s request for a review “makes a lot of sense.”

He added, “I think the way forward, which is really what matters in situations like this, that is being suggested, one that I find very acceptable, the idea of legislation. Nigeria-Ghana Business Council, which will superintend over trade and investment matters between our two countries, may be long overdue.

“The time has come for us to take these worthwhile steps. I suggested to Mr President (Nigeria’s president, Muhammadu Buhari) that it will be a good idea to set up a joint ministerial committee of ministers from both sides who will be responsible for shepherding Ghana and Nigeria issues, reporting to both presidents at any time, and that is how they should be resolved.”

A jointly issued communiqué at the end of the bilateral meeting between members of the two parliaments, led by their speakers, Gbajabiamila and Oquaye, stated that “measures will be adopted to support law-abiding traders to properly regularise their business operations to alleviate the trade challenges occasioned by the alleged closure of the retail stores, because of the ravaging impact of COVID-19 pandemic on businesses and families in both countries.”

But on November 11, 2020, a save our soul letter from the Nigerian Union of Traders Association in Ghana was presented to the Chairman of Nigerians in Diaspora Commission, Mrs Abike Dabiri-Erewa, requesting a “peaceful and secure evacuation of Nigerians in Ghana” back to Nigeria.

According to the commission’s Twitter handle, this letter was signed by 753 members seeking support to be repatriated to Nigeria.

It further listed the constant and consistent harassment, intimidation, torture and threat to life, more importantly, the total lockdown of their shops.

The statement read in part, “Their request is, among others, to secure a peaceful and secure evacuation of Nigerians in Ghana back home to Nigeria. The letter has a list of 753 members who signed to be supported to return home.

“They explained that the evacuation had become necessary because of the constant and consistent harassment, intimidation, torture and threat to life, as well as a total lockdown of their means of livelihood, as their shops have been locked for almost one year by the Ghanaian authorities.

“More so, since all diplomatic niceties at the highest level between Nigeria and Ghana have not yielded positive results. Now, landlords are coming to ask us for rent. How do we pay with our shops locked up for so long? We are dying here.”

Responding to the call, Dabiri-Erewa called for peace and promised to engage relevant stakeholders.

She expressed sadness over the locked shops “citing draconian conditions against the Economic Community of West African States Protocols of Free Trade and movement of goods and services.”

The ECOWAS Protocol

ECOWAS was established in 1975 to facilitate free trade and movement of persons, goods and services within West Africa.

 The ECOWAS Protocol on the free movement of persons and goods was established in 1979 to convert the borders of West African countries to “bridges.” This implies that citizens of member states would be able to move and trade freely.

Findings from a research study titled, “A ‘Schengen’ agreement in Africa? African Agency and the ECOWAS protocol on free movement” by Samuel Okunade and Olusola Ogunnubi revealed that some Community states still restricted citizens of member states from participating in certain kinds of economic activities, expelled immigrants and created measures to limit entry and actions of “illegal immigrants.”

Due to the violations and lack of implementation of the protocol, the ECOWAS Court was established in 1993 and inaugurated in January 2001 as the supreme legal institution of the Community charged with the responsibility of ensuring the “law, principles of equity in the interpretation of the provision of the treaty was observed” and to resolve issues that arose from the policy and treaty to ensure a seamless integration process.

An analysis of the protocol further attributed the “lack of political will, incessant political instability and inter-state border disputes, wars and countries’ reluctance to surrender national sovereignty to a sub-regional organ” had rendered the ECOWAS protocol of little effect.

Still on the “Jollof wars”

A mother of two and dealer in phone accessories at the Madina Market, Accra, Mrs Blessing Blessed, stated that the marketing strategy of Nigerians that endeared them to their customers was one of the reasons for the “unfavourable atmosphere” between Nigerian and Ghanaian traders.

She claimed, “There is a sentiment between Ghanaians and Nigerians. From what I have observed, there are some things you’ll do as a Nigerian and you would be told you are a foreigner you don’t have the right to such.”

Blessed further explained that the closure and reopening of shops was a constant battle they dealt with.

She added that her other counterparts were mostly involved in importing and sales of goods.

Despite the challenges, Blessed noted that her business still thrived as her marketing skills endeared her to her customers.

She praised the available and constant social amenities and noted that the cost of living and naira to cedi exchange rate was higher.

The need to move

Due to several upheavals, unemployment and the need for a better life, many Nigerians have left the country for “greener pastures” or “the abroad.”

Japa, a Yoruba slang which means “to run or escape” and loosely translated to mean relocate has become common parlance.

Several ways and routes, both legal and illegal, on how to leave the country are common features on the Internet.

In 2018, a non-partisan American think-tank, Pew Research Centre, reported that 45 per cent of Nigerian adults planned to migrate within five years.

Five years after, the immigration rate had increased exponentially.

A retail clothier, Blessing Matthias, was in an excited conversation with two other colleagues at one of the plazas on Tip Toe Lane, when our correspondent met with her.

Her immigration to Ghana began when “a friend, a Nigerian from Edo State, I met on Facebook invited me to come to Ghana. He (the friend) said he had a business in Ghana and that I should come over to work with him.”

Matthias said she resigned from her job as a fuel attendant in Lagos State to embark on the journey to a supposed better working experience in Ghana.

On her arrival in Accra in 2018, she began working with her benefactor in the bar he owned but was not “paid after working for him for six months.”

“We disagreed with the non-payment and I told him to pay me so that I could return to Nigeria,” she added.

She stated that with further pressure from other Nigerians, she was paid and returned to Nigeria.

After leaving the new life she had become adjusted to, Nigeria no longer held its appeal as Matthias said she returned to Accra after spending only three days in Nigeria.

She later met another Nigerian benefactor who helped her settle in the country and became a supplier of Nigerian foods in Accra.

In a sing-song voice, she said, “Today, I am doing my business and I am here to meet with my customers. I now sell male underwear and although I have a shop a few metres away, I still go from shop to shop to advertise my wares. I’m a Nigerian girl in Ghana doing my business.”

On policies affecting her business, Mathais opined that a non-Ghanaian was fine once they obeyed the trading laws.

She, however, stated that since was in the clothing line and purchased her wares from the warehouse in Accra, her shop was not locked.

Mathias further stated that the Nigerian market system of trading made them “the envy of Ghanaians and made them face some discrimination.”

ECOWAS treaty should be respected – NUTG

Commenting on the policy and the intervention of the Nigerian government in 2021, the NUTG president stated that despite the ECOWAS treaty, Nigerians were still being affected by the GIPC Act.

He pinned the situation on the lack of proper implementation and respect for the ECOWAS treaty.

Nnaji said, “The policy that requires $1m basic capital for foreigners trading in Ghana is a challenge to not just Nigerians but to other foreigners. Our view on the policy is that Nigerians are not supposed to be affected because of the ECOWAS treaty that says that West African nationals are the same in terms of living, working and trading.

“The problem we have been facing is the lack of respect of and implementation of the ECOWAS treaty by countries signatory to it. This has made it ineffective that none of the countries, including Nigeria, keep to those rules and we have now become victims of such circumstances.”

He further stated that Nigerians trading in Ghana registered their businesses with the business regulating body in Ghana and were given the certificate to conduct their business.

He added, “What is being charged for that registration is 0.5 per cent of the $1m which is $5,000 and paid to the government (of Ghana) excluding other payments. This amount of money, both in previous years and now, is not a small amount of money. Now, it is over N3m; this is somewhat of a huge amount of money to raise. I am sure most of the people that came to Ghana have such an amount. So, as a union, we encourage them to partner others; this is permissible under the law so that they can register their businesses.”

The NUTG noted that the requirement to employ 20 Ghanaians was a challenge faced about three years ago, which had been resolved.

Nnaji said, “It used to be calm because the government was fair to the nationals from the West African nations but after the closure of the Nigerian border, the tide turned against us. This led to some of our shops being locked. Some of the shops were locked for three years. Mine was locked for two years with goods in it. There are a few ones that have been locked but have yet to be reopened.”

He, however, stated that following the intervention of the Nigerian government in 2021, concession was given to businesses that were registered and operational before 2020, which led to the reopening of some of the shops.

On the current situation of things, Nnaji said, “Some of the shops that were closed two years ago are still closed. Some shops have been reopened and were closed in November last year.”

On a lighter note, he added that Nigerians’ decision to live in Ghana as against living in Nigeria was a matter of choice.

Nnaji noted that his love for adventure and the need to begin his business prompted his move to Ghana 28 years ago.

He said, “Generally, Ghanaians have a structure they are working on and we see them move forward with it. There have been improvements since I came here some 20 years ago. I remember in 2004 when my wife first came here, she refused to stay with me but after three years, she decided to return. The difference between 2000 and 2007 is the improvement made here as against the lack of improvement there. In terms of business, we expect that the population in Nigeria should make business boom but I can also tell you that many people thrive here despite the difference in the population and the controlled competition.”

The NUTG president stated that despite the challenges faced in the previous years, their businesses were thriving.

He further decried the long years of unstable social amenities in Nigeria, stating that whenever he visited his hometown, he had to rely on his generator set for electricity supply due to long power outages.

“If we had the basic amenities in Nigeria, I don’t think anybody would want to move. In Lagos, almost every house has a borehole. Meanwhile, in Accra, there is constant electricity and when it is disrupted, those affected will be informed,” he added.

Shops of traders without documentation remain closed – GUTG

On his part, the President of the Ghana Union of Traders Association, Joseph Obeng, stated that Nigerian traders were affected during the shop closures because they formed a majority of non-Ghanaian businessmen.

He noted that Nigerians formed about 85 per cent of West African citizens in the country.

“So, whenever we mention foreigners, they feature prominently to think they are been targeted. What the government has done for the sake of the ECOWAS protocol, though they (the traders) do not qualify under the protocol because they do not trade in the goods manufactured in their country of origin, the President gave them special dispensation that those who have been here before 2020 should be exempted from the exercise and allowed to do their trading. That is if they produce their documentation and it is okay,” he added.

The GUTA president emphasised that the agreement was between Nigeria and Ghana, with representatives from the Nigerian embassy, the trade ministry in Ghana, GUTA and the NUTG present.

He noted that only a few traders who presented their documents had their shops reopened.

Obeng stated, “We started the exercise from Circle where the mobile dealers are, to the area where the electrical dealers are and then to Abossey Okai, where the spare parts dealers are in Accra.

“But the task force is yet to go to other regions and sectors. This time, nobody is protesting because of the special dispensation and the time frame the government has given them to submit their documentation. Some were able to submit their documents, while many others were not able to submit any documentation.”

He clarified that those who traded in Nigerian goods were not affected by the closures but those who traded in goods imported outside the West African state.