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Center for Open Access in Science ▪ https://www.centerprode.com/ojre.html
Open Journal for Research in Economics, 2024, 7(1), 9-22.
ISSN (Online) 2620-102X ▪ https://doi.org/10.32591/coas.ojre.0701.02009j
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© Authors. Terms and conditions of Creative Commons Attribution 4.0 International (CC BY 4.0) apply.
Correspondence: Augustine Okon Jacob, Heritage Polytechnic, School of Management Science,
Department of Business Administration, Ikot Udot, NIGERIA.
A Review on Economic Implications of
Nigeria’s Border Closure on Rice Importation
Augustine Jacob
Heritage Polytechnic, School of Management Science, Ikot Udot, NIGERIA
Department of Business Administration
Received: 9 October 2023 ▪ Revised: 2 April 2024 ▪ Accepted: 22 April 2024
Abstract
Nigeria’s border closure on rice importation has significant economic implications that require
comprehensive analysis. Policymakers must consider both the short-term and long-term effects,
as well as broader socioeconomic factors. Balancing economic considerations with employment,
food security, and regional disparities is crucial for inclusive and sustainable development. By
adopting a holistic approach, Nigeria can navigate the challenges and opportunities presented by
the border closure, achieve self-sufficiency in rice production, and promote the well-being of its
citizens. Gradually phasing out the border closure while enhancing the competitiveness of local
rice producers through incentives and support will ensure market efficiency. Investing in
agricultural research, extension services, and infrastructure development will improve
productivity and quality. Strengthening border control mechanisms will prevent smuggling. To
sustain regional economic partnerships, it is critical to collaborate with neighboring countries.
Nigeria's border barrier for rice imports presents numerous obstacles and opportunities. Nigeria
has the power to attain rice self-sufficiency and promote all-encompassing and sustainable
development by implementing a comprehensive strategy that successfully balances economic
considerations with broader social factors. This includes gradually phasing out the border closure
while enhancing the competitiveness of local rice producers, investing in agricultural research
and infrastructure development, strengthening border control mechanisms to prevent
smuggling, and collaborating with neighboring countries to maintain regional trade
relationships.
Keywords: border closure, Nigeria, rice sector, food security, regional disparities.
1. Introduction
Understanding how significant events and policy decisions influence diverse
industries and stakeholders necessitates an examination of the economic implications. Two
instances of significant occurrences are the closure of Nigeria’s borders and the varied
consequences it had on rice importation (Nwagu, 2023). Understanding the economic
consequences of policy acts allows individuals, businesses, and politicians to develop effective
strategies and make sound judgements (Carpenter, 2017). A thorough investigation of the
consequences of Nigeria’s border ban on rice importation is critical for a variety of reasons.
Because rice accounts for such a large amount of the Nigerian diet, the country is
significantly reliant on imports to meet its domestic food demands (Gyimah-Brempong et al.,
A. Jacob – A Review on Economic Implications of Nigeria's Border Closure on Rice Importation
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10
2016; Ishaq Ibrahim, 2018). Rice import disruptions might have a substantial impact on food
prices and security. Economic ramifications research can give information on potential benefits
and obstacles that may result from border closure (Mendoza & Torres, 2019). The rice industry is
significantly important in Nigeria’s agriculture sector and overall economy. The aforementioned
factors lead to the formation of job opportunities, the generation of revenue for farmers, and the
acquisition of foreign currency earnings. A full investigation of the economic effects of border
closures in connection with rice importation is required to determine the implications on the
industry's growth, productivity, and competitiveness (Abbas et al., 2018; Ugwuja & Chukwukere,
2021). Investigating the economic ramifications of the border closure could provide valuable
insight into the greater trade dynamics and interdependence between Nigeria and its trading
partners. This allows for the evaluation of trade policies’ effectiveness and alignment with national
objectives (Ekanem, 2021; Enyiazu, 2022; Uwak & Ebong, 2023). Before designing trade policies
that encourage both regional integration and economic progress, policymakers must thoroughly
understand this concept.
The closure of Nigeria’s borders in August 2019, mainly the land borders, had a severe
impact on economic activity, particularly rice imports. The strategy was developed with the goal
of minimizing illegal smuggling activity, boosting the development of domestic enterprises, and
improving the nation’s overall security. However, the repercussions of this phenomenon on rice
importation have varying periods of economic consequences, including both short-term and long-
term effects. The border restriction had an immediate impact on the availability of imported rice
on the Nigerian market. Due to a scarcity of resources, fulfilling the domestic rice need through
local production became critical. This condition provided a wonderful chance for local rice growers
to boost their production capacity and earn a larger market share. However, due of an imbalance
between consumer demand and rice supply, this occurrence has resulted in price instability,
making rice less economically accessible to consumers (Azifuaku et al., 2020; Ugwuja &
Chukwukere, 2021; Sherif et al., 2023).
Market dynamics and trade patterns have also changed as a result of the border
closure. Several neighboring countries that acted as centers for rice smuggling into Nigeria have
experienced a decrease in supplies to that country. In contrast, domestic rice output increased
noticeably, prompting the formation of local rice brands and a significant gain in market
recognition. The changes in trade patterns had a significant impact on regional trade alliances and
underlined the importance of implementing effective border control techniques (Salik & Aras,
2020; Ekanem, 2021; Udeh & Nwokorobia, 2022; Nwagu, 2023). The border closure has financial
ramifications for the government, affecting budgetary and revenue-related issues. Nigeria’s
customs revenue grew as a result of a decrease in smuggling activities, providing the government
with an opportunity to collect more import taxes and levies. However, the suspension of
operations had negative impact on enterprises and job opportunities in border regions as a result
of a decrease in income from lawful international commerce (Omale et al., 2020; Nwozor &
Oshewolo, 2020; Abiodun, 2021; Idoniboye-Obu, 2022).
The major purpose of the border closure was to increase self-sufficiency in rice
production and minimize Nigeria’s dependency on imported rice in the near future. This goal is
congruent with the government's agricultural growth objectives and commitment to economic
diversification. It is critical to examine the economic effects of the border closure on rice
importation in order to assess progress towards self-sufficiency, recognize the challenges faced by
domestic rice farmers, and propose solutions to increase the sector’s competitiveness (Johnson et
al., 2013; Abbas et al., 2018).
Understanding the effects on various sectors and stakeholders necessitates a full
assessment of the economic consequences of Nigeria’s decision to close its borders to rice imports.
Using data allows governments, corporations, and individuals to make informed decisions and
establish successful plans. By focusing on rice imports, we can examine the effects of the border
Open Journal for Research in Economics, 2024, 7(1), 9-22.
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closure on food security, the rice industry, trade dynamics, and government revenue. The current
analysis provides significant information that policymakers may utilize to develop trade policies
that promote regional integration, economic growth, and self-sufficiency in rice production.
2. Overview of Nigeria’s border closure
In August 2019, the Nigerian government implemented a policy to tighten its borders,
with a focus on land borders. This measure was taken to combat smuggling issues, stimulate the
development of indigenous businesses, and strengthen national security. The purpose of the effort
was to reduce the unlawful transit of items such as rice into the country (Nwozor & Oshewolo,
2020; Udeh & Nwokorobia, 2022). Rice smuggling has long been a problem in Nigeria, slowing
the expansion of the domestic rice industry and impeding progress towards rice production self-
sufficiency.
The decision to close the border was prompted by the desire to safeguard and support
Nigerian farmers, boost domestic production, and lessen the country’s reliance on rice imports.
The government’s reasoning for enforcing import restrictions, according to Emeka and Nwangene,
2021; Enyiazu, 2022, and Idoniboye-Obu, 2022, was based on the expectation that such actions
would facilitate the emergence of favorable conditions for domestic farmers to adequately satisfy
internal rice demand, thereby fostering agricultural industry expansion. The border closure, which
was intended to be a temporary measure, has lingered for an extended period of time and has
greatly impacted business activities. The restriction affected not only rice imports, but also other
goods and commodities sold across international borders. Consumers, businesses, and dealers in
Nigeria and adjacent countries felt the effects. The closure reduced legitimate cross-border trade
due to restrictions on goods transportation, and the aforementioned conditions had a negative
impact on businesses and employment, particularly in border regions where a large portion of the
local economy was dependent on cross-border trade (Abbas et al., 2018; Odebode & Aras, 2019;
Abiodun, 2021). Limitations on products and services harmed supply networks, affecting
industries and businesses that relied heavily on imported raw materials and inputs.
Nigeria has become a large rice importer on the African continent, with imports
meeting a sizable amount of its domestic demand. The border closure reduced the availability of
imported rice in the Nigerian market, leading to a rise in demand for locally cultivated rice
(Babatunde, 2023). The closing of rival rice fields provided an opportunity for local rice producers
to improve production capacity and earn a larger market share. Due to the fall in rice imports,
customers were driven to seek for domestically farmed rice as a replacement. The change in
customer preferences benefited the local rice industry and was in line with the government’s goal
of fostering rice production self-sufficiency (Mendoza & Torres, 2019; Alvarez et al., 2022).
To fulfil the rising demand, the region’s rice production capacity must be rapidly
enhanced. Farmers must contend with difficulties such as inadequate infrastructure, limited
financial access, and insufficient mechanization. The restrictions discussed above show the
importance of supporting and investing in the local rice value chain in order to achieve sustainable
growth and boost competitiveness. The border closure caused price volatility in the rice market.
Rice prices grew dramatically as a result of a combination of restricted supply and high demand,
making it less affordable for consumers, particularly those with lower incomes (Abbas et al., 2018;
Oetgy & Frec Erdw, 2019). The consequences of price fluctuation on food security were observed
as cost became a key concern for a sizable portion of Nigerians.
The Nigerian border blockade had a substantial impact on trade activities, particularly
rice imports. The shutdown was meant to improve overall national security, allow for increased
domestic rice production, and lower the chance of smuggling. According to Ekanem (2021), the
rise of the local rice business presented both opportunities and challenges. On the one hand, it
A. Jacob – A Review on Economic Implications of Nigeria's Border Closure on Rice Importation
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provided prospects for growth and development. On the other hand, it made it difficult to meet
rising demand while keeping customer prices affordable. Examining the focus on rice imports in
particular provides crucial insights into the domestic rice industry’s potential and limitations, as
well as the necessity for deliberate actions to encourage its growth and long-term survival.
3. Economic implications of the border closure on rice importation
The Nigerian government’s decision to seal the border has had severe economic
consequences, particularly for rice imports.
3.1 Decreased availability of imported rice
The reduced supply of imported rice was a direct result of the Nigerian market’s border
restrictions. The implementation of import limits drastically reduced the availability of imported
rice. Nigeria, a major rice importer on the African continent, has relied largely on imported rice to
meet domestic consumption demands (Coker et al., 2018; Yusuf et al., 2020; Nwagu, 2023).
Because imported rice was becoming less available, a market vacuum needed to be filled with
alternate sources.
3.2 Impact on local rice production and farmers
The border closure offered excellent conditions for the local rice sector to expand and
meet the increasing demand caused by the difficulty in obtaining imported rice. Nigerian rice
producers reportedly increased production to compensate for the scarcity caused by a lack of rice
imports. According to Okodua (2018), this resulted in a substantial increase in agricultural work
options, enhancing the economic prospects of farmers in the surrounding area.
However, efforts to increase local rice production have hit a number of stumbling
barriers. Farmers faced challenges such as a lack of mechanization, weak infrastructure, and
limited financial access. The issues outlined above underlined the need for more investment and
assistance in the local rice value chain in order to raise output and competitiveness in the near
future.
3.3 Price fluctuations and affordability for consumers
The border closure had a substantial impact on the dynamics of rice pricing in the
Nigerian market. As a result of the reduced availability of imported rice, demand for domestically
cultivated rice has surged dramatically. Rice prices rose dramatically as a result of price volatility
induced by a surge in demand and a scarcity of supply. Price changes have a considerable impact
on rice availability, particularly for persons with lower socioeconomic status (Lucky, 2020; Sadiq
et al., 2021; Udeh & Nwokorobia, 2022). As a result, some parts of the population found it more
difficult to get a fundamental necessity, potentially affecting food security.
3.4 Changes in trade patterns and market dynamics
The border closure had a substantial impact on rice market dynamics and trading
patterns. Previously, Nigeria’s neighboring nations were utilized as transit locations for rice
smuggling, but this practice has declined. The aforementioned transition necessitated
modifications to supply chains and distribution networks, as well as the disruption of pre-existing
trade links (Johnson et al., 2013). Local rice growers benefited from the shift in market dynamics,
Open Journal for Research in Economics, 2024, 7(1), 9-22.
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as their market share increased. As a result, revenue increased noticeably, significantly boosting
the domestic rice business.
Concurrently, when activities ceased, there were less legitimate international
economic transactions, which impacted businesses and people in border communities that relied
heavily on such trade. Restricted movement and market accessibility posed obstacles for small-
scale traders and enterprises engaging in authorized cross-border initiatives. Because of the
aforementioned disruption, it is now more vital than ever to implement strong border control
systems that can combat smuggling while still supporting lawful trade.
The border shutdown had a substantial impact on the government’s revenue and
spending forecasts. On the one hand, the closure reduced the amount of money earned by
legitimate cross-border company activities. The aforementioned drop has a substantial impact on
firms, particularly those involved in lawful import and export activity. Reduced rice smuggling, on
the other hand, increased customs revenue because rice that was lawfully imported was subject to
import duties and taxes. These varied outcomes impacted the government’s fiscal status,
prompting a full examination of the broad financial ramifications of the border closure.
Nigeria’s border shutdown has had a number of severe economic consequences for rice
imports. Because of the decrease in the supply of imported rice, domestic rice production has filled
the market gap. However, as a result, new difficulties such as price volatility and limited client
affordability have evolved. According to the authors Akpan et al. (2015) and Arigor et al. (2015),
supply chain adjustments have become required as a result of changes in trade patterns and
market dynamics. Divergent outcomes from the establishment’s closure were also observed in
terms of revenue and government budgetary management. Understanding the economic
ramifications stated above is critical for policymakers working to develop successful policies for
developing a competitive and sustainable rice sector while also protecting food security and
adhering to fair trade agreements.
4. Analysis of short-term and long-term effects
The closure of Nigeria’s borders has had an immediate and long-term impact on the
rice business. The impacts of the closure on supply and demand dynamics, degrees of self-
sufficiency, market stability, and potential benefits and downsides for the rice industry are
examined in this paper.
4.1 Short-term effects on supply and demand
The supply chain for rice in Nigeria has been temporarily affected due to the border
blockage. Foreign rice availability has reduced dramatically as a result of the minor intake of
imported commodities. The growing demand has put local rice producers under pressure, causing
them to try to satisfy it. Farmers have boosted their output in response to growing demand.
However, due to constraints such as insufficient mechanization and inadequate infrastructure
(Ajala & Gana, 2015; Ayinde et al., 2017), they have struggled to supply this demand adequately.
As a result, there may be short-term constraints on rice supply on the market, causing significant
price variations and forcing consumers to make adjustments.
As a result of the limited availability of imported rice, customer behaviors and
preferences have shifted. Consumers who were previously reliant on imported rice have been
compelled to substitute domestically cultivated rice. Because of the shift in consumer demand,
local rice farmers now have the chance to boost their market presence and sales (Nwachukwu &
Achike, 2020). Customers, on the other hand, have had to acclimatize to the potentially changing
qualities and characteristics of rice in different locations.
A. Jacob – A Review on Economic Implications of Nigeria's Border Closure on Rice Importation
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4.2 Long-term effects on self-sufficiency and market stability
The border blockade may have a long-term impact on Nigeria’s ambition of being self-
sufficient in rice production. To stimulate indigenous production and lessen reliance on imported
rice, the government has imposed import restrictions. According to Ugwuja and Chukwukere
(2021), the closure has provided a favorable atmosphere for neighborhood farmers to expand their
operating reach and output capacity. The existing situation suggests that future self-sufficiency
and reliance on other sources can be increased.
Long-term strategic planning and major financial investment in the rice value chain,
on the other hand, are required for long-term self-sufficiency. Farmers’ difficulties, including as
inadequate infrastructure and limited financial access, must be addressed in order to maintain the
local rice industry’s long-term existence. It is critical to undertake efforts in Nigeria to expand rice
production, stimulate innovation, and improve product quality and competitiveness (van Oort et
al., 2015; Uduma et al., 2016). The success of these tactics will determine the level of self-
sufficiency that can be attained and maintained.
Border closures also have an impact on market stability. The government is imposing
import restrictions in an effort to prevent rice price volatility and establish a more stable market
environment. However, price changes are possible in the near future as supply reacts to changing
dynamics. Customers, particularly those from lower income groups, may be affected by this issue
since they may find it difficult to purchase rice. The ability of the local rice industry to constantly
meet demand while maintaining competitive price will be critical to the market's long-term
stability.
4.3 Potential benefits and drawbacks for the rice sector
The shutdown of the Nigerian border may have both beneficial and negative
consequences for the rice business. One of the primary advantages is the potential of local farmers
to expand their production capacity while improving their quality of life. The increased demand
for rice cultivated locally has the potential to raise farmer incomes, offer job opportunities, and
greatly contribute to the development of rural communities. Furthermore, it may encourage
investments in agricultural infrastructure and the expansion of auxiliary businesses along the rice
value chain.
Closure measures could be employed to lower the trade deficit and safeguard foreign
currency reserves. Nigeria has the capacity to utilize its resources efficiently in order to assist
indigenous firms, with a focus on the rice industry, by implementing import reduction measures.
This phenomenon has the potential to considerably improve the overall state of the economy and
encourage economic diversity.
It is, nevertheless, critical to be aware of any potential downsides. The installation of
the shutdown may lead to an increase in the number of people attempting to sneak illegal products
in order to circumvent the limitations. This issue may stymie the government’s efforts to expand
the domestic rice industry and achieve self-sufficiency. Farmers' difficulties, such as inadequate
infrastructure and mechanization, must be addressed in order to ensure the agricultural sector’s
long-term viability and competitiveness (Rafeek & Samaratunga, 2011; Mendoza & Torres, 2019).
Economic disruptions have the potential to have a significant influence on economic
relations between surrounding countries. The closure of Nigeria’s borders has caused diplomatic
problems with its neighbors due to disruptions in established trade patterns and the resultant
economic impact on these countries. To strike a healthy balance between the need for
independence and market stability while retaining strong trade alliances, careful consideration
and teamwork are required (Olukunle et al., 2020; Abiodun, 2021; Uwak & Ebong, 2023).
Open Journal for Research in Economics, 2024, 7(1), 9-22.
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The Nigerian border closure has both short-term and long-term implications for the
rice industry. Despite the fact that the current state of affairs provides local farmers with favorable
prospects and the opportunity for self-sufficiency, it is vital to understand and solve the associated
obstacles and disadvantages. It is critical to engage in extensive long-term planning, offer funding
for infrastructure and technology development, and provide major assistance to the local rice
industry in order to achieve sustainable self-sufficiency and market stability (Ojo et al., 2019). The
effectiveness with which these objectives are managed while maintaining trade links will decide
how the border closure affects the rice industry and the economy as a whole.
5. Socioeconomic factors and considerations
Beyond the rice industry, the Nigerian border closure has far-reaching socioeconomic
consequences. The main issues of this study are the consequences for jobs and livelihoods, the
implications for food security, and any potential injustices encountered by inhabitants living in
border regions.
5.1 Impact on employment and livelihoods
In terms of livelihoods and jobs, the border closure will have a profound impact on all
sectors of the economy. Import restrictions have affected enterprises’ cross-border business
operations, resulting in undesirable results such as job losses and income drops. Significant
repercussions have been documented on the livelihoods of small-scale traders and entrepreneurs,
who rely heavily on international trade (Johnson & Dorosh, 2017; Paul et al., 2021).
The shutdown of the rice sector, on the other hand, has created chances for local
individuals to find work and make money. The increase in local rice production has resulted in the
establishment of new job opportunities in the domains of cultivation, processing, and distribution.
The aforementioned plan offers potential in terms of promoting rural development and poverty
alleviation, particularly in places where rice growing is common (Emeka & Nwangene, 2021).
However, it is critical to acknowledge that the distribution of the job’s immediate
rewards may not be equitable. Due to limited access to resources such as land, money, and
technology, small-scale farmers may be unable to capitalize on the expanding demand for locally
cultivated rice. It is critical to resolve these disparities and support small-scale producers in order
to foster equitable socioeconomic progress.
5.2 Food security implications
Food security is a major concern in Nigeria, and the country's inability to provide a
sustainable supply of rice for its inhabitants is hampered by the closure of its borders (Ozkan &
Fawole, 2021). Given the difficulty of getting imported rice, it is critical to prioritize local rice
production to close the supply gap and meet domestic demand (Amaechi, 2018). It is critical to
improve domestic rice sector growth in order to increase food security by lowering dependency on
foreign imports.
Domestic rice production, both in quantity and quality, is required for food security.
Increased productivity and a consistent supply of affordable rice for consumers are contingent on
adequate investment for agricultural infrastructure, R&D, and comprehensive farmer training
programs. To avoid any potential negative consequences from growing rice output, strategies
aimed at protecting the production of other key crops must be implemented. This method is
essential for maintaining a diverse and well-balanced food supply.
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5.3 Regional disparities and border communities
The border closure may have various effects in different parts of Nigeria. The
shutdown’s aims are to promote domestic manufacturing and reduce dependency on imports.
However, the impact of this strategy may be higher in places closer to the borders (Mohammed,
2017; Nwozor & Oshewolo, 2020). These geographical locations usually have higher levels of
engagement in international trade activities and may encounter more major disruptions.
People who live near borders may face unique challenges as a result of border closures.
The economic activities and means of subsistence of these people are heavily reliant on foreign
commerce. As a result of certain firms closing, residents in particular regions may notice a
decrease in their economic possibilities and income. Prioritizing comprehensive research of
border towns’ particular requirements and vulnerabilities, officials must then implement tailored
measures to strengthen economic resilience and encourage growth (Enyiazu, 2022).
To address regional imbalances, a comprehensive strategy that considers a variety of
factors, such as infrastructure development, market access facilitation, and the implementation of
inclusive policies that promote economic diversification beyond the scope of cross-border trade,
is required. According to Teriba (2014), by targeting resources to these specific areas, the
government may reduce any detrimental impacts on regional economies while also promoting
equal socioeconomic progress throughout the country.
Beyond the rice trade, Nigeria’s border shutdown has socioeconomic ramifications.
The subject under consideration has a substantial influence on regional inequality, food security,
employment, and other issues. The shutdown of the local rice sector may provide job possibilities,
but it is critical to prioritize eliminating inequities and supporting inclusive growth. To attain food
security and mitigate any negative impacts on border communities, it is critical to invest in the
local rice industry and implement supporting policies (Odunayo, 2014; Adeyinka, 2014; Favour,
2023). Fostering sustainable and equitable growth within the constraints of the border closure
would necessitate the implementation of a comprehensive plan that takes socioeconomic
considerations into account.
6. Policy implications and recommendations
The closing of the Nigerian border has attracted attention to the need for effective
government actions to handle the economic ramifications, notably in the rice business. This
section examines the policy implications and offers recommendations to aid decision-making in
the aftermath of the closure.
6.1 Balancing trade protection and market efficiency
One of the primary policy issues is finding the best balance between trade protection
and market efficiency. Border closures are generally used to safeguard local companies, such as
the rice sector. Extensive protectionist policies must be applied with considerable caution to
prevent strangling market efficiency and competitiveness. To increase the competitiveness of local
rice growers, policymakers must carefully consider removing the border restriction gradually
(Ugwuja & Chukwukere, 2021; Ajoje & Adegboyo, 2022; Idris et al., 2023). This might involve
implementing a slew of regulations aimed at encouraging creativity, simplifying technological
adoption, and boosting financial choices for small-scale farmers.
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6.2 Enhancing local rice production and value chains
It is critical to expand domestic rice farming and develop the entire value chain in
order to maintain the benefits of border closure and attain self-sufficiency in rice production. To
boost rice production productivity and quality, policymakers must prioritize investments in
agricultural research, extension services, and infrastructural development. These initiatives are
expected to increase crop yield, decrease harvest-related losses, and raise Nigerian rice’s
competitive position in terms of both price and quality (Adebowale, 2016; Uduma et al., 2016;
Abdulwaheed et al., 2017; Okunlola et al., 2020).
Prioritizing the expansion and upgrading of rice production value chains is critical.
This includes allocating cash to build processing facilities, storage infrastructure, and distribution
networks to make it simpler to supply locally produced rice to clients promptly and efficiently
while keeping specified quality requirements. Improving the value chains of the local rice sector
would increase its overall effectiveness and competitiveness.
6.3 Strengthening border control mechanisms
It is critical to strengthen border control systems in order to prevent smuggling
operations and maintain compliance with trade regulations in light of the relaxing of border
restrictions. To offer effective monitoring and enforcement, resources must be allocated to
technical upgrades and human capital development (Emodi & Madukwe, 2011). When it comes to
effectively fighting smuggling-related concerns, the importance of collaboration with neighboring
nations cannot be overstated. It is possible to achieve the desired objective of developing regional
trade harmony while boosting local production by doing so (Ugwuja & Chukwukere, 2021).
In order to facilitate lawful commercial activity, efficient and transparent customs
procedures are required. The introduction of legislation aimed at speeding trade processes,
lowering administrative barriers, and improving transaction visibility will enable more successful
cross-border business activities. Furthermore, creating such an environment will make it simpler
for informal trade operations to become formalized, encouraging economic integration and
decreasing the incentives for smuggling (Igwe et al., 2015; Sherif et al., 2023).
6.4 Promoting regional trade partnerships
Prioritizing the protection of small businesses is crucial, but so is developing regional
trade alliances. Nigeria’s border blockade has strained its diplomatic connections with its
neighbors, necessitating coordinated efforts to repair and enhance these bilateral alliances. To
deepen regional economic integration and improve the overall business climate, good
communication and negotiation are required to resolve difficulties and establish mutually
beneficial solutions (Anaele & Ogali, 2022; Nebeife et al., 2022).
Collaboration projects can increase the flow of products and services while
simultaneously encouraging fair competition. Implementation of regional trade agreements and
trade policy synchronization are two examples. According to Udoh (2021), Nigeria has the ability
to leverage regional trade alliances in order to capitalize on the comparative advantages of
neighboring nations and benefit from a diverse and resilient regional market.
To handle the economic consequences from the Nigerian border closure, thorough
policy considerations and strategic actions are required, particularly in the rice industry. Policy
implications and recommendations include the need to strike a balance between trade protection
and market efficiency, the strengthening of regional trade alliances, the development of local value
chains for rice production, and border control measures. Nigeria has the chance to exploit the
A. Jacob – A Review on Economic Implications of Nigeria's Border Closure on Rice Importation
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benefits of the border closure by achieving self-sufficiency in rice production, encouraging
economic growth, and contributing positively to regional integration and stability by putting these
plans into reality.
7. Conclusion
The closure of Nigeria’s borders has major and varied economic ramifications for rice
imports. The current study looked at the decline in imported rice availability, its effects on
domestic rice production and farmers, price fluctuations and consumer affordability, changes in
trade patterns and market dynamics, and the implications for taxation and other financial matters.
However, these economic implications must be considered in the context of broader
socioeconomic concerns.
Finally, the border restriction has restricted the availability of imported rice, as well as
the number of options and alternatives available to customers. The aforementioned phenomenon
has had a significant impact on local rice production and farmer livelihoods, providing both
chances for higher output and employment as well as obstacles due to a lack of resources and
support for small-scale farmers. Furthermore, as a result of price increases caused by the closure,
many consumers, particularly those in lower socioeconomic groups, now have less access to rice.
Changes in trade patterns and market dynamics have impacted not only the rice business, but also
countless other industries and the entire economy. The government has seen both good and
negative fiscal consequences, as indicated by revenue gains from increased domestic output and
potential losses from lower trade with neighboring countries.
Making informed policy decisions and conducting extensive analyses are critical for
effectively handling the current economic challenges. Decision-makers must carefully consider the
possible benefits and downsides for the rice sector, as well as the short- and long-term effects on
supply and demand dynamics. This necessitates a full grasp of the complex dynamics at work, such
as the connections between home production and offshore sourcing, the effects on various
stakeholders, and the broader economic and social consequences.
Furthermore, it is critical that public policy decisions extend beyond the rice business.
It is critical to consider the larger socioeconomic variables associated with border closures. This
includes regional inequities, food security implications, employment and livelihood consequences,
and employment and livelihood repercussions with a focus on border communities. Adopting a
comprehensive plan that takes into account not only economic reasons but also the goal of
supporting inclusive and sustainable economic development in Nigeria is critical if these concerns
are to be effectively addressed.
It is critical to strike a balance between economic and bigger societal considerations.
While increasing rice self-sufficiency is crucial, policymakers must also consider the possible
impacts on employment, food security, and regional inequities. Adopting a holistic plan that
considers economic, social, and environmental variables can assist policymakers in effectively
improving the overall well-being of the population.
The blockade of Nigeria’s borders has a significant economic impact on rice imports.
In order to make sound policy decisions, these ramifications must be thoroughly examined. It is
critical to integrate economic concerns with broader societal issues in order to achieve equitable
and sustainable growth. Nigeria has the potential to address the difficulties and opportunities
posed by border closures by implementing a comprehensive and coordinated approach. With this
method, the country might become self-sufficient in rice production and increase the overall well-
being of its people.
Open Journal for Research in Economics, 2024, 7(1), 9-22.
______________________________________________________________________________________________
19
Acknowledgements
This research did not receive any specific grant from funding agencies in the public
commercial, or not-for-profit sectors.
The author declares no competing interests.
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