Seme Border Loses Billions Despite Multi-Billion Naira Upgrade

LAGOS — A retired Nigeria Customs Service officer has raised a major alarm over revenue losses at the Seme Border between Nigeria and Benin Republic. Seyi Adeyemo told Vanguard that the Nigerian government’s trade restrictions at Seme are causing billions of naira in lost revenue, despite the multi-billion naira infrastructure upgrades carried out at the border in recent years.

Adeyemo said the restrictions, which limit the types and quantities of goods that can be legally imported through Seme, have pushed traders to illegal crossing points. These smuggled goods bypass Customs entirely, generating zero revenue while undermining legitimate businesses that comply with the rules.

“The government spent a fortune upgrading the Seme Border infrastructure. The facilities are there. The technology is there. But the trade restrictions have emptied the border. Traders have simply moved to the bush paths where nobody checks anything,” Adeyemo said.

Seme Border on the Lagos-Cotonou highway is Nigeria’s busiest land border. Before a series of restrictions were introduced, the border generated significant daily Customs revenue from the legal importation of goods from Benin Republic, Togo, and other West African countries. Trade volumes have fallen sharply under the current restriction regime.

The Revenue Paradox

The Seme revenue problem illustrates a broader paradox in Nigeria’s trade policy. Restrictions intended to protect domestic industries and reduce import bills often end up driving trade underground. When legal channels become more expensive or complicated than illegal ones, traders rationally choose the illegal route.

Customs revenue experts say the solution is not to remove all restrictions but to calibrate them carefully so that legal trade remains the most attractive option. Tariff levels, processing times, and the predictability of border procedures all factor into whether traders use official channels.

Furthermore, the Nigeria Customs Service has identified Seme as a priority border for its electronic Customs systems upgrade. Modern technology can speed up processing times and reduce the cost of compliance for legitimate importers. However, Adeyemo said technology improvements mean little if the underlying trade restrictions make legal imports commercially unviable.

Economic Impact

The revenue losses at Seme have real consequences for Nigeria’s fiscal position. Every naira lost to smuggling is a naira that cannot fund public services, infrastructure, or social programs. At a time when Nigeria is running a large budget deficit and borrowing heavily, plugging revenue leakage is a national priority.

West African trade experts say Nigeria’s approach to Seme also affects its relationships with ECOWAS neighbours. Restrictions that push trade underground create tension with Benin Republic, which benefits from acting as a transshipment hub for goods ultimately destined for Nigeria. A more open and predictable border regime would benefit both countries.

The Customs Service said it is reviewing border management policies in consultation with the Ministry of Finance and the Ministry of Trade and Investment. An updated border management framework is expected before the end of the third quarter of 2026.