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CNG: Border Closure Has worsened Poverty, Unemployment In the North

Coalition of Northern Groups, Taraba state chapter, has condemned the continued land-border closure by the federal government, claiming it favours the south at the expense of the north.

The group also alleged that the proposed Tax Reform Bill by President Bola Ahmed Tinubu’s administration is designed to develop southern Nigeria.

This position was made known in a statement after a press conference in Jalingo, Taraba state capital, signed by its coordinator, Comrade Idris Ayuba.

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According to him, most of the difficulties the north is facing are the repercussions of the decisions of the present administration.

“The effect of Petroleum subsidy removal, land border closure and the new tax regime are a few examples of the policies that have plagued the north since the coming on board of the present administration.

“Reduction in the consumption of a capital commodity like petroleum occasioned by the subsidy removal is not a manifestation of a positive policy impact.

“It rather indicates reduced economic activities that force people out of energy consumption,” he said.

On the land border closure, Idris said it has resulted in significant losses for traders and business owners in the region, exacerbating poverty and unemployment”, he noted.

He said, “The policy has given undue advantage to Southern Nigeria, for instance, the closure has led to an increase in demand for locally produced goods in Southern Nigeria, which has boosted the southern regional economy.

“Additionally, the Southern region has benefited from the increased revenue generated from customs duties and taxes on imported goods.

“The closure has also created an imbalance in the distribution of economic opportunities, with Southern Nigeria having greater access to ports and international trade routes. This has resulted in a concentration of economic activity in the Southern region, further marginalizing northern Nigeria,” Idris explained.

According to the coordinator, one of the primary concerns is the impact of the land-border closure on the regional economy, which they claimed has been heavily reliant on cross-border trade with neighbouring countries.

He said the closure has resulted in significant losses for traders and business owners in the region, adding that the tax reforms would have a negative impact on the region’s agricultural sector, which is a significant contributor to its economy.

Urging policymakers to consider the potential impacts of these reforms and work to ensure that they do not exacerbate the existing economic inequalities, the group advised that the North’s contribution to the nation’s coffers should not be solely measured by its economic output.

“A more equitable revenue-sharing formula would acknowledge the North’s unique challenges and contributions, ensuring that the region receives a fair share of the national revenue”, he added.

He, however, lamented over “many abandoned federal government projects in the north”.

“The Mambilla Hydropower Project is estimated to cost around $5.8 billion, with the Chinese Export-Import (Exim) Bank funding 85 per cent of the project, while the Federal Government of Nigeria provides the remaining 15 per cent.

“The project is expected to generate 3,050 megawatts of electricity, making it the largest power-generating installation in Nigeria.

“The Jalingo-Numan Road project has equally lingered for more than 15 years without a tangible commitment to even start it. It’s essential to note that the project is crucial for connecting the Taraba State to other parts of the country.

“The failure to complete these projects perpetuates the existing disparities between the North and the South. The lack of investment in critical infrastructure hinders the region’s ability to attract businesses, create jobs, and stimulate economic growth, create jobs, and stimulate economic growth,” he said.

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