The Managing Director, Law Union & Rock Insurance Plc, Mayowa Adeduro, has spoken about the effect of borders reopening on Nigeria’s economy.
Techeconomy.ng reported that the federal government on Wednesday approved the reopening of four land borders with immediate effect.
Adeduro explained that the impact is that the economy will be rejuvenated and there would be less pressure on it.
The director who disclosed this in an interview said: “The impact is that the economy will be rejuvenated. There will be less pressure. There’s social pressure whether you like it or not in Nigeria.
“People are agonising, some companies have failed and businesses have failed. People trading at the borders couldn’t do their trade again and they went into crime. I am not saying Nigerians are criminals but that is the reality we are facing.
There has been a lot of social pressure. But all of these will reduce and activities will pick up. As at today, for a population of almost 206 million, the total number of vehicles we have in Nigeria is just about 13 million to serve a population of 206 million.
All the government needed to do was to make sure that when these vehicles are coming into the border, just establish the structure so that they will pay the right duties. But to say they can’t come in will be hurting the economy.
Speaking on what transpired for the closure of the borders, the MD said: “I said it sometime in April that closing the Nigerian borders was going to hurt the economy, because it takes someone to develop the capacity to produce goods you want to supplement.
“That is the reason the government has come back to realise that they are better of opening the border. Who gains apart from the African Continental Free Trade Area (AfCFTA) Agreement? The revenue of the Customs has been cut.
“Apart from the exportation of crude oil, the next place where we earn so much money is from custom duties. The income has shrunken significantly and we have some companies exporting goods through the land border to other neighbouring countries.
“Even as bad as our manufacturing companies are concerned, people are still exporting our manufactured good to our neighbouring countries.
“The government closed the borders. A lot of the food items that are coming through that neighbouring border were all down.