ABEOKUTA—The Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) has frown at the continuous closure of the country’s borders, adding that the policy will jeopardize the government’s good effort towards SMEs development.
The President of the Chamber, Alhaji Olaleye while addressing newsmen in Abeokuta pointed out that the border closure, which has been in effect since August 2019 with major objective of curbing rice smuggling actually have been causing serious impediment for businesses in Ogun State, same with other States.
“Local and international trades are the reasons for businesses to exist. Once these purposes have been taken from them, it portends even more danger to the economy than anything else.
“OGUNCCIMA have committed towards development of SMEs for export activities in recent years, with the support of our international partner and NEPC, we have facilitated the processing of ECOWAS Trade Liberalization Scheme registration for dozens of SMEs to enable them to trade along the ECOWAS corridor.
“This would have boosted commercial activities at the same time generate revenue for the government. Instead what we have are businesses that are struggling for survival when they cannot realize their production and sales capacity
“Businesses grow when they enjoy economies of scale however; in these parts we have been disadvantaged. For some businesses, the raw materials for production are sourced in the rural places that are along the border areas where government officials are being deployed
“The activities of these officials in inhibiting trade between those rural areas and urban centres are demoralizing to the farmers and businesses and injurious to the economy at large”, Olaleye reteraites
He further maintained that the Chamber have had to intervene several times in disputes between the farmers and traders in these rural areas and the uniform officers deployed to these regions of produce such as maize, palm kernel and the rest, after being wrongly accused of smuggling them and telling them explicitly.
He therefore said that despite governments’ relief programs and interventions, it is no news that SMEs are incurring losses somehow than gains and as released by CBN in the credits survey that default towards unsecured loans for businesses are increasing when companies cannot harness their potentials in commercial activities.
While commending the Federal Government on several intervention programs such as AGSMEIS loan, payroll support fund, Covid-19 relief fund for businesses and household and many more that was made available to SMEs and households in recent times, especially during the wake of the pandemic when business activities were almost grounded, the President that if these facilities were disbursed appropriately and utilized correctly potentially can help businesses overcome the crises.
He therefore urge the Federal Government to as a matter of urgency reconsider its position on the border closure before SMEs with export potentials that are barely surviving now ultimately cease to exist, adding that the impediments that Customs officials and Security operatives pose to border towns in our state be looked into and curbed.
“The pandemic and recent crises have already caused loss of billions or trillions in our economy and there is no better time than to employ all measures to make sure that we revamp the economy and set it on the right track” Olaleye said
“The economy at large stands to greatly benefit from border reopening for economic activities in these trying times than having it closed. Opening the land border will signal to SMEs with potential export capacity to expand their production and this will generate employment and increased economic activities
“Prices of commodities will not achieve equilibrium while it is being consumed locally and we won’t be utilizing our comparative advantage in our State.
“ECOWAS Trade Liberalisation Scheme agreement have covered most businesses and business activities that would be carried out on our land borders. We implore the government to honor the agreement.
“ACFTA agreement is another Pan-African project that Nigeria will stand to benefit greatly with the adoption of the right strategies. Prolonged border closure will continue to send wrong signals to the rest of the continent and the world at large about Nigeria’s potential to lead the continent”
