Nigeria’s Borderlands: The Untapped Goldmine of Regional Trade and Economic Power

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By Idris Muhammed Abdullahi

For decades, Nigeria’s economic architecture has been heavily concentrated around the ports of Lagos, inadvertently sidelining the vast potential of its border regions. Yet, these frontier zones—from Sokoto to Seme, Mfum to Maiduguri—are not merely peripheral zones; they are strategic gateways to regional trade, economic diversification, and national development.

The Overcentralization of Trade in Lagos

Lagos ports account for over 70% of Nigeria’s imports and exports. While this concentration may offer logistical efficiencies, it has produced serious structural challenges:

• Congestion and Delays: The sheer volume of cargo results in prolonged clearance times, inflating costs for businesses.

• Infrastructure Strain: Roads around the ports are frequently in disrepair, causing severe logistical disruptions.

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• Economic Disparities: The concentration of trade in Lagos leaves other regions underdeveloped and economically marginalized.

This overreliance on Lagos has inadvertently created regional imbalances and stifled the economic potential of Nigeria’s vast hinterlands.

The Economic Promise of Nigeria’s Borderlands

Nigeria shares borders with Benin, Niger, Chad, and Cameroon—each offering vibrant yet underregulated trade dynamics:

• Informal Trade Dominance: Roughly 90% of cross-border trade occurs informally, without government oversight or registration.

• High Trade Volume: Informal cross-border trade is estimated to contribute over $12 billion annually to the national economy.

• Job Creation: These trading activities sustain millions of livelihoods, especially in rural and border communities.

However, the lack of formal regulation results in significant revenue leakages and security vulnerabilities.

Border Communities as Case Studies in Economic Potential

1. Seme Border (Lagos State)

• Economic Activity: In 2024, the Seme Customs Command processed export goods valued at ₦13.057 billion.

• Challenges: Traders report harassment, poor infrastructure, and excessive checkpoints that hinder smooth transactions.

2. Jibia Border (Katsina State)

• Economic Activity: A critical corridor for trade with Niger, especially in agricultural produce.

• Challenges: Insecurity and inadequate infrastructure limit the full utilization of the route.

3. Mfum Border (Cross River State)

• Economic Activity: A vital trade point with Cameroon, facilitating movement of timber, food, and agricultural commodities.

• Challenges: Deteriorating roads and outdated facilities hamper trade efficiency.

Policy Recommendations

To unlock the full economic potential of Nigeria’s borderlands, the following actions are essential:

• Infrastructure Investment: Upgrade roads, build modern storage facilities, and improve customs operations at border points.

• Formalization of Informal Trade: Introduce frameworks to register, train, and financially empower informal traders.

• Trade Decentralization: Encourage the use of border trade corridors and regional ports to decongest Lagos and promote balanced development.

• Enhanced Border Security: Improve security architecture to protect trade routes and curb smuggling or insurgent activity.

• Regional Policy Harmonization: Strengthen collaboration with neighboring countries to align trade policies and remove non-tariff barriers.

Conclusion

Nigeria’s borderlands are more than geopolitical boundaries—they are economic lifelines waiting to be fully activated. By investing in strategic infrastructure, formalizing trade, and decentralizing economic activity, Nigeria can transform its border communities into vibrant engines of growth and regional integration. Doing so will not only reduce the economic burden on Lagos but also pave the way for a more inclusive and prosperous national economy.

Idris Muhammed Abdullahi, from Sokoto State, is a country specialist and expert on Finance, Anti-Corruption, Beneficial Ownership, AML/CFT/CPF, Illicit Financial Flows, Asset Recovery, and Tax Evasion.