Mali, Burkina Faso, and Niger have introduced a 0.5% levy on goods imported from Economic Community of West African States (ECOWAS) member nations, including Nigeria, to finance their newly formed union.
The levy, which takes effect immediately from Friday, March 28, is aimed at supporting the Alliance of Sahel States, an economic and security pact established by the three military-led nations following their exit from ECOWAS.
The levy applies to all imports except humanitarian aid. While officials say the funds will “finance the activities” of the alliance, they have not disclosed further details.
This development marks a significant shift in regional trade. Niger, for instance, imported $290 million worth of goods from Nigeria in 2022.
By 2023, that figure dropped to $209 million, with key imports including petroleum gas ($44.6 million), electricity ($41.5 million), and cement ($32.8 million), according to the Observatory of Economic Complexity.
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The policy underscores the deepening divide between the Alliance of Sahel States and ECOWAS nations like Nigeria and Ghana, which remain committed to democratic governance.
Mali, Burkina Faso, and Niger severed ties with ECOWAS last year, accusing the bloc of failing to address security challenges posed by Islamist insurgencies.
ECOWAS had imposed economic sanctions on the three nations to pressure them into returning to civilian rule, but the juntas have instead pursued independent economic and political structures.
The three countries remain among the world’s poorest, grappling with widespread violence linked to al-Qaeda and the Islamic State. Over the past decade, insurgencies have killed thousands, displaced millions, and undermined trust in elected governments.
Analysts warn that the new levy could disrupt trade in West Africa, particularly for Nigeria, whose exports to Niger are a crucial part of bilateral commerce. Businesses operating across the region may need to reassess their strategies as political and economic alliances shift.
The move also raises concerns about ECOWAS’ stability, as internal fractures continue to challenge its effectiveness as a regional bloc.