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By Merit Ibe
Nigeria’s participation in the ECOWAS Trade Liberalisation Scheme (ETLS), designed to promote regional trade and industrial growth, has yet to translate into meaningful industrialisation due to persistent structural and implementation challenges.
The ETLS remains ECOWAS’ principal operational framework for creating a free trade area and strengthening economic cooperation within West Africa. In principle, the scheme offers Nigerian manufacturers access to a large regional market, positioning local industries to become more competitive and stimulate wealth creation.
Established in 1979, the ETLS initially covered agricultural products, mineral goods and handcrafted items. In 1990, it was expanded to include industrial products, accompanied by clear rules of origin defining which goods qualify as ECOWAS-origin products eligible for trade benefits. The scheme also envisaged the progressive removal of tariff and non-tariff barriers to intra-regional trade.
Nigeria has participated in the ETLS for more than four decades, with expectations that it would boost manufacturing productivity, drive structural transformation and diversify the economy through increased exports. However, experts argue that the opposite has occurred, as Nigeria has increasingly become a dumping ground for foreign goods, resulting in de-industrialisation, factory closures and job losses.
Analysts note that Nigeria’s exports within ECOWAS, largely crude oil, have not grown at the same pace as imports, creating an unfavourable trade balance. Industries such as textiles have been particularly exposed to intense competition, leading to significant declines in local production.
Several factors have been identified as undermining the effectiveness of the ETLS. These include poor awareness of the scheme, complex and inconsistent procedures, multiple levies, border harassment, corruption and weak enforcement of agreed rules. The influx of cheap and sometimes substandard products has further weakened local manufacturing capacity, particularly for small and medium-sized enterprises (SMEs).
Experts maintain that the scheme still holds strong potential if implementation challenges are addressed. They recommend targeted investment in technical and institutional capacity at both national and regional levels, simplified customs processes, reduced tariffs, removal of roadblocks at borders, and stronger engagement with the private sector, member states and development partners. Special attention, they argue, should be given to SMEs and women traders to help them benefit from the wider ECOWAS market.
The experts agree that while the ETLS remains a sound framework in theory, Nigeria’s experience underscores the urgent need for stronger implementation, policy coherence and institutional reforms to ensure the scheme supports industrialisation and inclusive economic growth, rather than deepening existing structural weaknesses.
Commenting on the issue, the Chief Executive Officer of Zevland Ventures and SME expert, Daniel Dickson-Okezie, said the core objectives of the ETLS have not been achieved due to infrastructure deficits, tariff and non-tariff barriers.
According to him, poor road networks, weak logistics systems and inadequate communication infrastructure have increased the cost of trade and slowed movement of goods. He also cited bureaucratic delays, excessive documentation, extortion at checkpoints and unofficial transit charges as major obstacles.
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Dickson-Okezie, a member of the Lagos Chamber of Commerce and Industry (LCCI), highlighted frequent extortion along trade corridors such as the Benin Republic–Badagry Expressway, noting that such practices violate ETLS provisions. He added that policy inconsistency arising from changes in government across ECOWAS countries, weak harmonisation of national laws, political instability, terrorism and insecurity have further disrupted regional trade.
“Infrastructure deficits, which include poor roads, limited logistics, and weak communication networks have slowed down trade and also increased costs.
“The issue of non-tariff barriers (NTBs), bureaucracy and delays at the ports, points of entry and leaving, complex customs, long processing, excessive documentation at borders have been a bane.
“Extortion, informal payments demanded by officials at checkpoints are also part of the weaknesses to achieving the scheme’s target.
“Policy inconsistency varying national laws, poor harmonisation or synchronization of policies at the border, weak enforcement of rules.Another thing is political and security issues. Some ECOWAS countries have gone to the point of withdrawing themselves from ECOWAS.
“The issue of terrorism, organised crime, have also disrupted trade routes, as you can see in the case of Nigeria.
“The countries that have borders with some of the ECOWAS members where terrorism thrives , are finding it difficult to move goods and it has been a major hindrance.
“Some of these barriers eventually encourage people to smuggle goods. Others are supply chain issues, the lack of real-time data skills gaps.
“These barriers encourage smuggling and undermine legitimate trade,” he said, calling for capacity building for small traders on ETLS procedures, improved supply-chain traceability, better data systems and exchange rate policies that reflect market realities.
Similarly, David Etim, Project Implementation Team Lead at Calabar and Gulf of Guinea Municipal and Trade Centre Limited by Guarantee, said the ETLS concept has failed to work effectively due to numerous official and unofficial tariffs.
He explained that the scheme was designed to link industrial hubs across West Africa, enabling regional value chains, but corruption and non-tariff barriers have frustrated this objective. Etim also pointed to language divides and colonial legacies between Francophone and Anglophone countries, including the influence of the CFA system, as major impediments to trade and financial flows within the sub-region.
According to him, poor regional connectivity, inefficient transport systems and the continued focus on exporting raw materials to Europe rather than promoting intra-African trade have further weakened the scheme’s impact.
