Exporters bemoan excise duty on transit goods by Benin Republic

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By Merit Ibe, [email protected] 

Nigerian exporters have decried a new duty policy imposed by Benin Republic on goods transiting from Nigeria  to other Economic Community of West African States (ECOWAS) countries.

They noted that  the policy by government of the tiny francophone nation was against the ECOWAS protocols and other international transit agreements. 

According to them, the development has left hundreds of trucks laden with transit goods worth several billions of Naira and bound for ECOWAS countries trapped at the border.

Some manufacturers and exporters who suffered losses on their cargoes abandoned  within the  border described  it as a retaliatory move by government of Benin Republic against the Nigerian border closure policy which badly affected the country.

They noted that efforts to get  the ECOWAS to act on the stalemate have remained futile. 

A manufacturer and Managing Director of Aarti Steel Nig Ltd, Imokhai Ehimigbai, who is also a member of the Manufacturers Association of Nigeria MANExport Group (MANEG), lamented the policy, saying  at a point in December, Benin Government  jettisoned the policy, only for them to resume it in  February.

Ehimigbai disclosed that the challenge was made open to a task force set up by ECOWAS Commission to look into proper implementation of ECOWAS Trade Liberalisation Scheme (ETLS).

He further explained that the committee headed by  Ambassador Mohammed Ibn Chambers, visited Nigeria  and met  with  MANEG in Abuja to resolve the Nigeria Benin border imbroglio.

In the course of the meeting, MANEG members discussed the issue of excise duty by Benin Republic, arguing that the policy breaches the principles of ECOWAS Trade Liberation Scheme ((ETLS), which says no  duty on goods manufactured in West Africa.

According to them,  the manufacturers and exporters opened up on how several trucks were stopped at the border and not allowed to cross over as long as they were carrying Nigerian goods probably for Ghana, Togo.

Responding, the task force, according to MANEG, admitted that there was a problem from Nigeria to Ivory Coast, promising to look into the issue  after meeting with Benin Republic.   

“So, if they can solve the problem between Nigeria to Ivory Coast corridor, they have solved over 80 percent of the hurdle to free movement of goods and services.

Lamenting the challenge, MANEG said; “Along ECOWAS region, we are blessed by sea, we cannot see ourselves moving goods and passengers by sea. If you look at it, about 90 per cent of  ECOWAS countries are by the sea shore apart from Niger, Burkina  Faso and Mali, no sea linking us and so we have to resort to road travel, now Benin Republic is coming with this problem.” 

Lukmon Fafoye, an export agent complained that three  of his trucks were stranded at the border, accumulating demurrage.

He said when Nigeria closed its border it affected Benin Republic, “so we see it as a retaliation. They don’t want any Nigerian products to cross their country.

It’s only goods that will be offloaded at Benin that they allow but any truck transiting to other countries through Benin are not allowed. They must pay duty.”

Lukman, who disclosed that  the move has been on for over a month now, noted that letters have been written to ECOWAS to intervene but nothing has been done to resolve the matter.

  He however called on ECOWAS  to intervene.

Alhaji Salami Alasoadua, Executive president of Association Quest African Du Commerce (AOCTAH/WACTAF) said the government of Benin Republic and the Federal government of Nigeria need to meet to discuss and resolve the issue.

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