Why Nigeria Continues to Lose Revenue at the Seme Border – Seyi Adeyemo

By Godwin Oritse

A retired customs officer, Seyi Adeyemo, has voiced concerns about the loss of billions of naira in revenue that he attributes to the Nigerian government’s trade restrictions at the Seme Border, despite the multi‑billion‑naira infrastructure upgrades financed by the World Bank.

Adeyemo also argued that the border post is far below its economic potential, as ongoing trade restrictions continue to encourage smuggling and deprive the national treasury of significant revenue.

He explained that for years, Nigeria’s trade policy has relied heavily on blunt and increasingly ineffective tools. Although intended to protect local industries and curb illegal imports, developments at the busy yet troubled Seme Border show that bans rarely yield the most rewarding strategy for a country seeking to boost revenue generation.

Stretching between Lagos and the Republic of Benin, Seme is arguably Nigeria’s most modern and accessible land gateway.

Recognising its strategic importance, the World Bank recently funded a comprehensive facelift of the border station, transforming it into a model of efficient cross‑border infrastructure. Beyond international financing, private stakeholders—from logistics firms to regional trade bodies—have invested heavily in bonded terminals, warehouses, and trailer parks designed to facilitate seamless trade.

He said: “The infrastructure is there. The technology is ready. The storage capacity is unmatched. Yet, Seme remains underutilised.”

“Despite these massive investments, the Federal Government has maintained a stranglehold on the movement of certain high‑demand goods, most notably used vehicles (Tokunbo). The official justification is the need to curb smuggling and encourage local assembly. However, the reality on the ground presents a stark paradox: diehard smugglers, undeterred by the bans, simply move their operations into the black market or through porous coastal routes. Meanwhile, the state bleeds the very revenue it desperately needs to fund the national budget.”

“If these restrictions were replaced with a transparent, technology‑driven tariff system, Nigeria could collect billions of naira in legitimate import duties. These are funds that currently disappear into the pockets of non‑state actors or are lost entirely to the Republic of Benin’s economy. In an era where the government is scrambling to diversify revenue away from oil, leaving such a lucrative tap closed is an economic own‑goal.”

“The deeper issue is a lack of strategic flexibility. Border management in Nigeria has defaulted to the easiest path: restriction. But in economics, the easy path is often the most expensive. By failing to weigh the trade‑offs—enforcement costs versus revenue potential, and informal smuggling versus formal trade facilitation—the government is undermining the very modernisation efforts championed by its international partners.”

“The Seme Border should be a beacon of legitimate, revenue‑yielding trade for the West African sub‑region. It has the warehouses, the data collection hubs, and the strategic location to become a primary engine of the Nigerian Customs Service. What it lacks is a policy rethink.”

“To fix the economy, we must fix the borders. It is time to move beyond the era of bans and ask a fundamental question: What if the most effective way to stop smuggling is to stop blocking trade and start taxing it efficiently?”

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