Alliance of Sahel States: New 0.5% tariff could hurt small businesses in Nigeria and Niger – traders
On Thursday, April 3, some traders in Mai’adua Local Government Area of Katsina State expressed concerns about a new 0.5% tariff added by the Alliance of Sahel States on imports into Nigeria and Niger.
The traders, speaking in interviews with the News Agency of Nigeria (NAN) in Kongolom, a border town in Mai’adua, worried that the extra cost would hurt their businesses. They pointed out that this new tariff could particularly affect businesses along the Nigerian/Niger Republic border.
NAN shared that Mali, Niger, and Burkina Faso recently left ECOWAS, a group of West African countries, and formed the Alliance of Sahel States. These countries also decided to add a 0.5% tariff on goods imported from outside the three countries.
Alhaji Muhammad Mamman, a trader who works near the border, said the new tariff could hurt the long-standing trade between the countries in the region. “Small and medium-scale businesses may not be able to afford the expenses forced by this new tax. If fewer goods move across the border, markets in Mai’adua and other areas will suffer, leading to economic stagnation,” he explained. Mamman also noted that this could lead to more smuggling, as small traders might try to avoid the official taxes, causing a loss of revenue.
Malam Abubakar Sagir, another trader in the area, suggested that instead of adding more taxes, both countries should work together to create better trade policies that support economic cooperation. He pointed out that businesses in the border areas had already been impacted by previous border closures and tensions between Nigeria and Niger. Some traders might choose to reduce their imports or find other ways to get their goods, but that could bring new risks.
Alhaji Kabir Sani, a businessman, explained that many traders rely on small profit margins. “Any extra cost will affect our ability to compete; adding a 0.5% duty will only make things worse,” he said.
The traders are hoping for a solution that won’t hurt their livelihoods or their communities.
