The Impact of the 2019–2021 Border Closure on Nigeria's Informal Trade: Challenges and Adaptation for Traders

Abstract

The informal trade sector in Nigeria is a crucial part of the country's economy,
providing employment and affordable goods to millions. However, between
2019 and 2021, Nigeria's government implemented a partial border closure
aimed at curbing smuggling and boosting domestic production. This paper
investigates the impact of this border closure on informal traders, with a focus
on the challenges they encountered and their resilience in adapting to the
situation. The study aims to fill the gap in existing literature by exploring how
such policy measures specifically affected informal trade in Nigeria. Using
secondary sources, including academic studies and official reports, the
research highlights the disruptions in supply chains, the rise in commodity
prices, and the increased operating costs faced by traders. Despite these
difficulties, traders exhibited significant adaptability by seeking alternative trade
routes and local sourcing methods to maintain their businesses. The findings
suggest that while the closure temporarily strained the sector, it also highlighted
the vital role informal trade plays in the national economy. The study concludes
that supporting informal traders through improved infrastructure, regulatory
reforms, and financial support could enhance their resilience and contribute to
economic stability. Recommendations emphasise fostering a more enabling
environment for informal trade to mitigate future disruptions and strengthen its
contribution to Nigeria's growth.