Licensed customs agents operating at Nigeria’s land borders have reported a significant 80% decline in trade activities due to the ongoing foreign exchange crisis.
The value of the CFA franc has drastically risen from N300 to N2,660 per 1000 CFA franc over the past three years, forcing importers to boycott the borders, particularly Seme.
This depreciation of the naira against the CFA franc has made trade unprofitable for importers, while only exporters benefit from the current exchange rates.
Ogonnanya Godson, Vice Chairman of the National Association of Government Approved Freight Forwarders (NAGAFF), explained that the steady increase in exchange rates since 2023 has been alarming, severely impacting border trade.
Former customs officials corroborated this, confirming the growing exchange rate gap and its adverse effect on cross-border business.
The Central Bank of Nigeria’s decision to remove the rate cap on the naira, aimed at unifying exchange rates, has been criticized for worsening the naira’s depreciation.
Importers now face higher costs, while those involved in agricultural exports are less affected due to their minimal dependence on exchange rates.