“Nigerian Exports Hit by New Sahel Tariff as Regional Trade Shifts”
By Springnewsng Media Limited | April 1, 2025
Mali, Burkina Faso, and Niger’s military rulers have imposed a 0.5 percent tariff on o imports, threatening N234 billion in Nigerian exports. This follows their exit from ECOWAS to form the Alliance of Sahel States (AES), reshaping regional trade dynamics.
Over the past four years, Nigeria has exported an average of N234 billion worth of goods every year to Mali, Burkina Faso, and Niger combined.
“It might become tougher for manufacturers because of the already existing high cost of production confronting the manufacturers domestically in Nigeria,” said Odiri Erewa-Meggison, chairman of the Manufacturers Association of Nigeria Export Promotion Group (MANEG).http://Nigeria Export Promotion Group (MANEG).
The tariff should not come as a shock; it was expected. These countries want to show they’re serious about breaking away, and hitting imports with extra charges is part of that plan.
For years, Nigeria traded freely with its northern neighbors. But now, this new tariff could make Nigerian goods more expensive and hurt businesses that rely on cross-border trade. It’s a sign that the rules of doing business in the region are changing fast.
Nigeria has been a key trading partner for Niger, with exports totaling $491.4 million over four years (2020–2023), excluding 2024. In 2023, exports stood at $84.2 million, down from $193 million in 2022, according to data from Trading Economics.
The top Nigerian exports to Niger included petroleum gas ($44.6 million), electricity ($41.5 million), and cement ($32.8 million), as reported by the International Trade Centre (ITC). Meanwhile, exports to Burkina Faso and Mali totaled $77.67 million and $47.4 million, respectively, over four years. Overall, Nigeria’s total exports to the three Sahel states amounted to $616.47 million in four years.
Similarly, Nigeria exported goods worth N82.38 billion ($107 million) to Niger in the first quarter of 2024, a 77.12 percent increase from the same period in 2023, according to the Nigerian Export Promotion Council (NEPC). Trade between Nigeria and Burkina Faso also saw a 41.4 percent increase in early 2024, underscoring the economic ties between these nations, based on data from the ECOWAS Trade Observatory.
Burkina Faso and Mali have also been significant trade partners for Nigeria. In 2022, Burkina Faso imported goods worth $138 million from Nigeria, while Mali imported $52 million in Nigerian products, according to the United Nations COMTRADE database. Key commodities in these trade relationships included agricultural products, refined petroleum, and manufactured goods.
The introduction of the levy signals the erosion of long-standing economic cooperation, making Nigerian goods less competitive in these markets. Higher costs from tariffs could push businesses to seek alternative suppliers, reducing demand for Nigerian exports. Nigerian exporters, once protected under the ECOWAS Trade Liberalisation Scheme (ETLS), now face technical barriers and import duties that could curtail market access.
Another concern is the potential downsizing of businesses that rely heavily on Sahelian markets. “Most manufacturing exporters doing a higher volume of export to any of the affected economies could resolve a reduction in their manufacturing operations and retrench their workforce, and tax revenue accruable to the government from such companies would be reduced,” Erewa-Meggison noted. Furthermore, the levy could fuel informal trade and smuggling along the borders, leading to data loss on Nigeria’s trade volume with these countries.
A Political Move with Economic Consequences
At its core, the levy is more than just a revenue-raising tool. The juntas governing the three nations have framed it as a means of financing their alliance, reinforcing their economic independence from ECOWAS. Their exit from the regional bloc was fueled by accusations that ECOWAS failed to adequately support them in battling Islamist insurgencies. Since then, these governments have taken steps to consolidate power, including deepening military and economic integration under AES.
However, the Sahel states remain some of the poorest in the world, reliant on trade with larger economies like Nigeria to sustain their fragile economies. The new tariff risks hurting not only Nigerian exporters but also local businesses in the Sahel region that depend on affordable Nigerian goods.
The Future of Regional Trade
This policy shift raises broader concerns about the future of West African trade dynamics. If more nations begin to erect trade barriers, ECOWAS could see its influence wane, leading to further economic fragmentation in the region.
For now, the introduction of the levy signals a new reality, one in which Nigerian exporters must brace for increased costs and greater uncertainty in their regional trade relationships.
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