Alliance of Sahel States: 0.5% tariff ‘ll affect businesses in Nigeria, Niger – Traders
Some traders in Mai’adua Local Government Area of Katsina State on Thursday decried the 0.5 per cent additional tariff imposed by the Alliance of Sahel States on imports into the states.
Speaking in separate interviews with the News Agency of Nigeria (NAN) in Kongolom, a border town in Mai’adua, these traders said the increased tariff would negatively affect their business activities.
The traders specifically noted the potentially negative effect of the tariff on traders along the Nigerian/Niger Republic border communities.
NAN recalls that Mali, Niger and Burkina Faso recently withdrew from ECOWAS, a regional body, and formed the Alliance of Sahel States.
They also announced the imposition of an additional 0.5% tariff on goods imported from outside the three countries.
Alhaji Muhammad Mamman, a trader along the axis, told NAN that the initiative could only disrupt the long-standing trade relationship between the countries in the region.
He said that was because many traders in the border communities relied on daily transactions to sustain their businesses and families.
“Small and medium-scale businesses may not be able to afford the expenses forced by this new tax.
“If only fewer goods move across the border, markets in Mai’adua and other areas will suffer, leading to economic stagnation,” he said.
Mamman observed that the measure also had the tendency to increase smuggling activities, especially by small traders looking for ways to bypass the official channels, which may lead to revenue losses.
Malam Abubakar Sagir, another trader in the area, said that rather than impose more taxes, both countries should work on improving trade policies that encourage economic cooperation.
Sagir noted that businesses in the border communities had already been affected by the border closures and diplomatic issues, especially between Nigeria and Niger Republic.
The traders, he said, might reduce their imports or look for alternative routes to avoid the levy, which comes with its own risks.
On his part, Alhaji Kabir Sani, a businessman, revealed that the majority of the traders depended on small profit margins.
“Any extra cost will affect our ability to compete; adding a 0.5% duty will only make things worse.
“Instead, both governments need to find a better way to support trade, not make it harder.
“If this continues, business will slow down and both Nigerians and Nigeriens will suffer; poverty will also increase,” Sani added. (NAN)
