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Land borders closure takes a toll on business

…prices of frozen foods, ‘okrika’ increase   For millions of Nigerians, this isn’t the best of times. The total ban on importation and exportation of…

  • …prices of frozen foods, ‘okrika’ increase

 

For millions of Nigerians, this isn’t the best of times. The total ban on importation and exportation of commodities through the country’s land borders is taking its toll on Nigerians, especially the poor with low purchasing power.

Many of them, who patronise frozen foods (chicken parts and fishes) and fairly used clothes usually brought in from neighbouring Benin Republic, are having a hard time getting those commodities in their local markets.

The commodities which were hitherto sold for rock-bottom prices by their dealers have now gone out of the reach of the poor as their prices have increased by more than 50 per cent.

In Kaduna, Mama Rukayat, a frozen fish seller, said she had lost several customers due to the border closure.

Used cloth sellers being patronize by customers in Lagos

“I have recorded lower sales since the closure of the border and it has resulted in a change in prices. Some customers who can’t afford it are not patronizing me again.

“For instance, a carton of sardine fish that cost between N14,000 and N15,000 now goes for N24,000 and N25,000, while ‘Shawa’, Herring fish, that cost N8000 is now N13, 500.

“I cannot buy the number of cartons I used to buy before because they get spoilt due to low patronage and lack of constant electricity supply. Everyone has a different taste. Those who want the local variety will go for it. This strategy will only worsen the economic situation of the country. I hope the closure is not for long if not I may decide to stop the business.”

However, a cross-section of frozen chicken dealers who spoke with Daily Trust on Sunday in Kaduna said the closure of land borders is not affecting them because since the government clamped down on the import of frozen foods, especially chicken and turkey, they began to source for their goods locally.

But when our correspondents visited the popular fairly used clothes market known as Kasuwar Bachi, it was booming with business activities, with a large number of buyers and sellers transacting businesses.

A shop owner and dealer in female underwears, Hamisu Ibrahim, said “So far, I have not experienced any shortage of goods. Just yesterday, I brought bales of women underwear from Lagos.

“The effect of the ban might take a longer period before it is felt, but it is a welcome development, anyone who wants to bring in something to the country should pay the duty so that government can continue to provide the services we need to survive in the country.”

On whether the closure will increase the prices of goods, he said, “Definitely, in the long run, when goods start coming in legally and duty is paid, it will affect the prices of goods unlike when goods come in illegally. But then, it would mean improved services because the government will be raising the money it ought to be getting from duty payment and taxes.”

In Abuja, Mr. Kalu Peter, who has a shop in Utako Market and has been selling used shoes and handbags for 22 years, lamented the effect of the border closure.

“I don’t have any other business except this. The closure of the border is affecting me immensely.  Since August, I have over eight bags of shoes that I paid for that I have not been able to bring in from Togo. These goods are worth millions of naira because I usually supply schools shoes during their resumption, but I got to the border and noticed that the border had been closed. The school I supply shoes to have been calling for the shoes and the land borders are closed,” he explained.

Mr. Peter is begging the government to open the borders because he does not know how to provide for his family without the business. “We cannot even try smuggling in goods into the country because if you do, you will be arrested and the goods seized,” he said.

Another trader in the market, Mrs. Rebecca Adeyeye, who sells second-hand clothes, said the closure of the border has affected her business too.

“I get my wares from Togo and since the closure of the border, it has been difficult to get goods. Right now, I buy from Lagos, which is more expensive than the normal price. If I get a bale of first-grade clothes (tops) at N100,000 from Togo, from Lagos, I get it for N140,000 or more. And when I increase the price as a result of the increase in cost price, customers complain. The government should know that it is not all that we use that we can produce. If they can reverse the policy, it will be good,” she said.

Tony Okoye, who buys fairly used clothes, confirmed that the prices of the clothes have increased since the closure of the land border. “Normally, the shirts that used to be N2000 are now sold for 4000.  The ones we buy for N1500 is now 3000. The government should look for other options to solve our economic problems rather than closing the border,” he said.

For those dealing in frozen foods, their stories are not different.

The CEO of Pyhoat Frozen foods, Mrs. Foluke Oni, said though the policy will be good for the country in the long run, the government should have warned of the closure of border earlier.

“Sincerely, the policy of closing the border is good because it will allow us to grow our products and that will be good for our economy.  But I guess we would have preferred a warning or sensitization to stock up before the policy is affected. If you go to our Nigeria farms for frozen foods, there are no products. Though we are relying on the local farms now, they can’t meet the demand we need for the large market,” she said.

Mrs. Oni thinks the government should empower Small and Medium Enterprises (SMEs) with funds to start their businesses. “Nigerians are ready to work.  So, the government and banks should give interest-free loans so people can get into doing some business. Even in your back yard, you can start something like fish farm/poultry” she suggested.

Patrick Nwankwo of Blessed IKD Fishing Company said he had been in the business for the past 15 years. “What we are experiencing now, we have not seen before. The closure of the border is affecting everybody involved in the frozen food business. And our so-called Nigerian farms are not capable as they are not meeting up with demands.”

He, however, commended the government’s decision to close the borders, so that local farmers can be encouraged, saying it will pay off in the long run.

In Kwara State, most sellers of ‘okirika’ have continued to lament over the toll the border closure is taking on their business as they mostly source their goods from neighbouring Benin Republic and Togo.

However, it was gathered that some of these items still find their way into the country through some smaller borders located in remote areas where attention is not being paid to.

The border closure has forced many dealers of these items out of business as the ones they are getting now are more expensive and of low quality.

A seller of second-hand clothing, Mrs. Folashade Ibrahim, said she is already looking at alternative businesses if the borders remain closed.

She said, “I’ve already partitioned my store for the new business I’m planning to start because this okirika business is not lucrative anymore.”

Mrs. Adenike Ismail, who sells frozen foods, said the prices have scared many customers away because the little they are getting is so expensive.

In Lagos, the ban seems to have just a little effect on the frozen food business as prices of fish and chicken remain the same.

Mrs. Chinasa, who is into frozen food business at Mangoro, said a carton of turkey sells for N16,000, while each kilo sells for N1,600. Before now, according to her, it sells between N1,700 and N1,800.

She also noted that a carton of chicken sells for N15,000; this price she said has remained like that for more than two months.

On the border closure, she said, “Shortly after the border closure, turkey and chicken became scarce, but after a week, it became surplus again. So presently, we sell a kilo of chicken for N1,500 and turkey N1,600 and we have been selling it like that for some time now. It was N1,600 and N1,700 a few months ago, so it is cheaper now.”

Mrs. Idayat Ibrahim, who sells second-hand clothes at Ikotun, said, “A bale of UK gowns was N110,000 but now, we buy at N125,000 because it is difficult for us to cross over to buy. So, gowns which we sold for N2,000 is now N2,500 each.”

As at the time of filing this report, our reporter observed sellers of second-hand clothes in areas like Oshodi, Ikeja and Agege selling clothes for as cheap as N50 and N100.

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