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By Daniel Adaji
Mali, Burkina Faso, and Niger have implemented a 0.5 per cent levy on goods imported from Economic Community of West African States member nations, including Nigeria.
This policy, effective immediately, aims to generate revenue for their newly established three-state union following their exit from ECOWAS.
This was disclosed in an official statement on Monday.
The three military-led governments, which came to power through recent coups, formed the Alliance of Sahel States in 2023 as a security pact.
Over time, this alliance has expanded into an emerging economic bloc with ambitions for deeper military and economic integration, including plans to introduce biometric passports.
The new levy applies to all imported goods except humanitarian aid. According to the statement, the revenue collected will be used to “finance the activities” of the alliance, though no further details were provided on the specifics of its allocation.
The trade relationship between Niger and Nigeria underscores the potential economic impact of this decision.
In 2022, Niger imported goods worth $290m from Nigeria, making it one of Nigeria’s top five trading partners, according to data from the World Integrated Trade Solution. Niger, in return, exported $68m worth of goods to Nigeria that same year.
By 2023, Nigeria’s exports to Niger declined to $209m, with key products including Petroleum Gas ($44.6M), Electricity ($41.5M), and Cement ($32.8M), data from the Observatory of Economic Complexity reveals.
The imposition of this tariff signals the end of decades of free trade within ECOWAS and further widens the divide between the Alliance of Sahel States and democratic governments like Nigeria and Ghana.
The three juntas severed ties with ECOWAS last year, accusing the regional bloc of failing to adequately support their fight against Islamist insurgencies.
Despite economic sanctions imposed by ECOWAS to push for a return to constitutional governance, Mali, Burkina Faso, and Niger have continued to consolidate their independent political and economic strategies.
These countries remain among the poorest in the world and face ongoing security challenges due to Islamist insurgencies linked to al-Qaeda and the Islamic State. The conflicts have led to thousands of deaths, the displacement of millions, and deep public disillusionment with past democratically elected governments that struggled to contain the violence.
Observers warn that this new levy could disrupt trade across West Africa, especially for Nigeria, whose economy is closely linked to its neighbors. The move also raises questions about ECOWAS’s future as internal divisions threaten the bloc’s cohesion and effectiveness.