Mali, Burkina Faso, Niger Introduce 0.5% levy on ECOWAS import

Joy Agwunobi

 Mali, Burkina Faso, and Niger have introduced a new 0.5 per cent  levy on all imports from Nigeria and other member states of the Economic Community of West African States (ECOWAS), amid growing geopolitical tensions in West Africa.

The measure, which takes immediate effect, marks a shift in trade relations and signals the trio’s deepening economic divergence from the regional bloc.

The decision comes as part of efforts to generate revenue for the newly formed Alliance of Sahel States (AES), the economic and security coalition established by the three military-led nations in 2023. Having severed ties with ECOWAS earlier this year, the juntas in Bamako, Ouagadougou, and Niamey are pushing for greater self-reliance by strengthening military and economic integration within their alliance.

According to an official statement, the levy will be imposed on all imported goods except humanitarian aid. While specific details on how the revenue will be allocated remain undisclosed, the funds are expected to support various activities within the AES framework, including economic projects and military operations.

The introduction of the levy effectively dismantles decades of free trade between these three nations and the broader ECOWAS bloc, reinforcing the growing divide between the AES and regional powerhouses such as Nigeria and Ghana. The decision is expected to have far-reaching economic consequences, particularly for Nigeria, which has historically maintained strong trade ties with Niger.

In 2022, Niger imported $290 million worth of goods from Nigeria, making it one of its top five trading partners, according to the World Integrated Trade Solution (WITS). However, by 2023, Nigeria’s exports to Niger had dropped to $209 million, with key traded goods including petroleum gas ($44.6 million), electricity ($41.5 million), and cement ($32.8 million), according to data from the Observatory of Economic Complexity (OEC). Niger’s exports to Nigeria, on the other hand, were valued at $68 million in 2022.

The decision by Mali, Burkina Faso, and Niger to impose this levy underscores the shifting geopolitical landscape in West Africa. Their withdrawal from ECOWAS in 2024 was fueled by frustrations over the bloc’s response to security challenges, particularly Islamist insurgencies plaguing the Sahel region.

However, despite economic sanctions imposed by ECOWAS to push for a return to civilian rule, the three military-led governments have remained steadfast in their pursuit of independent political and economic structures.