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  • Business - Economy
  • Updated: November 10, 2020

Land Border Waiver: How President Buhari Abused Constitutional Power To Favour Dangote

Land Border Waiver: How President Buhari Abused Constitution

The decision by President Muhammadu Buhari to reopen the land border - a year after closure - for only Africa's richest man Aliko Dangote to export his goods has led to criticisms from Nigerians.

The waiver issued to Dangote is an abuse of the 1999 constitution by President Buhari as it disenfranchises other Nigerians and businesses, which the constitution stipulates against.

Recall that the border was shutdown without prior notice, leading to a hike in food inflation. Since the closure, inflation has continued to rise, and United States Economist, Steve Hanke projects that in 2021, inflation will rise to 29.45% as against the 11.29% President Buhari forecast for next year.

Dangote is the founder of the Dangote Group, which is the parent company of Dangote Cement, Dangote Sugar, Dangote Salt, Dangote Tomato - the company in 2019, also stated that it was entering into rice production.

President Buhari has now issued him a commercial clearance to export his cement products through the land borders, while other Nigerian companies are banned from exporting their products outside the country.

READ ALSO: CBN's Emefiele Says Will Aggressively Ban More Food Items From Receiving Forex Amid High inflation

Dangote Cement will now be able to export their products to Togo and Niger. It is unsure if the waiver given to Dangote can be requested, as the government didn't announce an application for a land export waiver.

Buhari Abuse Constitutional Power To Favour Dangote?

While the Nigerian constitution gives President Buhari powers to manage the major sectors of the economy, it also states in Chapter II (1999 constitution), section 16; subsection (1b) that the state (government) should "control the national economy in such manner as to secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity;

(c) without prejudice to its right to operate or participate in areas of the economy, other than the major sectors of the economy, manage and operate the major sectors of the economy;

(d) without prejudice to the right of any person to participate in areas of the economy within the major sector of the economy, protect the right of every citizen to engage in any economic activities outside the major sectors of the economy."

Meanwhile, subsection (2c) states that the state shall direct its policy towards ensuring "that the economic system is not operated in such a manner as to permit the concentration of wealth or the means of production and exchange in the hands of few individuals or of a group."

READ ALSO: Controversial Policy: Harzoyka Reveals Why Ladies Are Not Allowed To Enter Its Restaurant Without Men

Despite the provisions of equitable rights of Nigerian business owners stipulated in the constitution, President Buhari narrowed his border policy to favour Dangote Cement in a democratic and capitalist country.

The cement market is not consisting of Dangote alone, as the company is rivaled by BUA Cement and Lafarge Cement.

Buhari's decision has disenfranchised BUA Cement, Lafarge Cement, and other cement manufacturing companies from other sectors their right to equal economic opportunity, as Dangote Cement isn't the only company exporting goods outside Nigeria.

Why Land Border Matters To Nigerian Businesses

Just like every other countries, Nigeria has different border entries and exits; air, sea and land - which is the most porous border in Nigeria - this is one of the reason it was closed by the Buhari administration to protect local manufacturers from smuggled goods and saturated foreign goods.

However, despite the land border being porous, it is the most used border for imports and exports into and outside Nigeria by businesses. This is due to its affordability. The land border is cheaper for local businesses to utilise for transportation of goods, compared to air and sea border, which are considered high-end borders.

This is why there's an uproar among Nigerians and the business community within the country, as majority have lost their foreign source of income due to the sudden land border policy of Buhari, and to worsen the situation, the government has limited land border export to Dangote.

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