The federal government has reacted to International Monetary Fund (IMF) backing of Nigerian border closure over issues bordering on illegal trade.
Abebe Selassie, the Director of the African Department at the IMF, had spoken on the matter on the sidelines of the World Bank/IMF Annual Meetings in Washington.
Selassie said although, free trade was critical to economic growth of the continent, it must be legal and in line with agreements.
“On the border closure in Nigeria, which has been impacting Benin and Niger, our understanding is that the action reflects concerns about smuggling that has been taking place.
“It is about illegal trade, which is not what you want to facilitate,’’ Selassie said.
“We are very hopeful that discussions will resolve the challenges that this illegal trade is posing.
“If the border closure is to be sustained for a long time, it will definitely have an impact on Benin and Niger which, of course, rely quite extensively on the big brother next door,’’ he added.
On Sunday, while reacting to a DAILY POST question on the IMF position, Minister of Finance, Zainab Ahmed, said the border closure doesn’t negate the African Continental Free Trade Agreement (AfCFTA).
She said: “IMF supports Nigeria because they understand why we took the decision. It was for the good our country and our people.
“The commitment with these countries is that goods can come in but must be sealed and then checked at Customs.
“But that’s not what’s happening. They allow goods and other items to be smuggled. Obey the rules is what we are saying.
“Now that we have committed to the AFCTA, we have to follows the rules. They have to follow the rules as well, otherwise business will be affected”.
On timeframe for re-opening the borders, Ahmed responded: “It is not permanent. Discussions are going on at the technical levels. What will then follow will be talks at the presidential level.”
