Road infrastructure and border trade in North-East Geopolitical Zone in Nigeria

Abstract

Road infrastructure is vital in facilitating mobility and trade in Nigeria and the Sub-Saharan Africa region. Drawbacks to beneficial trade in the region have been identified to inefficiencies of infrastructures in Africa from the large volume of literature, and the growing security threats resulting from the migrant population. Main challenge is how to improve the processes of moving goods and services across national boundaries, and henceforth, building and operating efficient border controls and customs regulations. To date, trade initiatives from institutions like Economic Community of West African States (ECOWAS) amongst others have been stagnant, and not able to address these challenges. However, improving border posts and customs procedures will not only reduce the cost and delays in border checks but increasing dynamism in the demographics and other business constraints. The main objective of this study is to identify specific factors that would affect the growth of trade in border towns, and the importance of transport in facilitating mobility to border locations. Findings from the estimated coefficients revealed that Government investment in infrastructure is not significant enough to change the upwards trend in prices ceteris paribus, thus cost of doing business creates price differentials between the border town and other cities in Nigeria. Significant factors predicted – road networks and the environment play a key role in travel conditions.  As a result of this trend, it has increased border points of exit. Given the growing immigration problems, inefficient working of regional trade policies - ECOWAS and NEPAD amongst others, active labour force participation in border towns, and the improved conditions of roads, resulting into growth of illegal roads and increased conflict zones are experienced. It recommends a regional policy for a variety of economic activities – agriculture and small scale enterprises, amongst other things, as springboard for boosting growth of border trade in border towns.

Key Words: Border trade, road infrastructure, immigration, illegal routes.