EDITORIAL: Operation Ex-Swift Response: Buhari’s protectionist economic policy should be applauded
While Nigerians prepare to welcome the ember months in the fall of August, President Muhammadu Buhari took the decision to initiate a protectionist economic policy coupled with security operation along the borders of the country; first, the western border with the Republic of Benin and then later with Cameroon and Niger. The decision codenamed “Ex-Swift Response” is an operation coordinated by the Office of the National Security Adviser (ONSA) with the Nigerian Army, the Department of State Service (DSS), Nigeria Customs Service (NCS) and other security agencies part of the operation. Ex-Swift Response is not only to tackle prevailing security threats from neighbouring countries especially Niger in the north where porous border escalated banditry, kidnapping, cattle rustling, farmers and herders clashes in North Western zone of the country, Ex-Swift Response comes handy with Federal Government’s resolve to block the leakages of smuggling across the borders especially in the Southwest. From economic perspective, there is no contravention in the fact that the economy of Benin relies basically on Nigeria. To drive the point home further, Benin Gross Domestic Product (GDP) benefits strongly from smuggling activities across the border at the detriment of Nigeria. The World Bank also confirmed that 20 percent of the GDP of this Nigeria’s neighbour is from informal exportation and re-exportation to Nigeria through the land borders. In the past, Benin Republic had carelessly defaulted and totally pushed aside memorandum of agreement signed with Nigeria about exportation to Nigeria. The country through its nonchalant attitude has encouraged smuggling across the border with bleeding consequences to Nigeria’s GDP. President Buhari have promised to reopen the border for proper economic activities soon, since there is no country that can permanently close its border, especially after Nigeria signed the African Continental Free Trade Area (AfCTA) agreement. IMPACT NEWS commended President Buhari’s administration for taking the bull by the horn and we challenge the Federal Government to ensure that in the future, concrete commitment to Memorandum of Agreement is assured before any of the borders can be reopened. IMPACT NEWS observes that the Federal Government’s decision is a follow-up to the 2016 ban on Forex of some selected commodities part of which rice is prominent. Four years after this policy, the market is still heavily flooded with foreign rice that mostly finds their way through the land borders. We at IMPACT NEWS are in full support of any and every policy of government that is geared towards strengthening the economy. Our support to the Buhari’s protectionist economic decision is also hinged on the revelation by the Comptroller General of the Nigerian Customs Service (NCS) Col. Hameed Ali (Rtd) that since the border closure, the revenue generation of the service at the Sea and Airports has increased. He said that daily the service generates between 4.7 billion and 5.8 billion since the border closure. We understand that the government at certain period must take definite decisions that may be teething yet has remote benefits for it citizens. Nigerians must realize that sacrifices must be made for Nigeria to move the country, especially in our thinking, ideology, spending and preference of goods (foreign and local). Countries like South Korea at a point in its existence had to adopt protectionist economic policy, and promote industrialization by import substitution. Today, South Korea is the fourth largest economy in Asia and the eleventh in the world. South Korea is able to achieve this feat in spite diplomatic tension in that region. There is no economy that grows on importation. Nigerian must cooperate with the government to reposition the economy. It is therefore no news that in less than two months of border closure, the economy of the country has been adversely affected. Inflation shoots up with 0.22% in September after the country had experienced a downward trend in July and August. As it is, the September inflation rate was 11.24%. There is therefore no exaggeration that the border closure is biting hard on Nigerians, a country that is import oriented. This data only show that now is the right time if we truly want a robust economy build on industrialisation and growth of local manufacturing sector. While some Nigerians have a field day on the inflation data from the Nigeria Bureau of Statistics (NBS) to hit at the government, it only calls for a change of orientation we have as citizen about made in Nigeria good. Local manufacturers of goods that smugglers bring into the country will always be grateful to the government. The rice farmers in the country would be smiling to the bank and motivated to expand their investment in rice farming. The Federal Government has said that Nigeria is at the moment self-sufficient in rice production and consumption however reality all over the country proves otherwise. The government must be sincere in its reforms and policies to harvest populace’s investment of trust. More also as a big brother to African countries, the federal government must stand by its word of reopening the land borders for business with its neighbours. The economy of Benin Republic for instance relies on Nigeria’s massive population. There are reports that perishable goods like vegetables lay waste on the streets and villages in Benin due to the border closure. Government must ensure that agreements are abide with, and default is promptly pointed out with practical notes of warning. Benin Republic that is badly hit by the border closure by now should have gotten the signal desist from flouting the ECOWAS treaty on transit of goods across member states. Read the full article
