Mali, Burkina Faso, and Niger have imposed a 0.5% levy on imported goods from Nigeria and other Economic Community of West African States (ECOWAS) member-nations. This move is aimed at funding a new three-state union after their exit from the larger regional economic bloc.
According to an official statement, the levy was agreed upon on Friday and will take effect immediately. It will affect all goods imported from outside the three countries, excluding humanitarian aid. The revenue generated will “finance the activities” of the bloc, although details on how the funds will be utilized have not been provided.
This development marks a important shift in the economic landscape of West Africa, as it ends free trade across the region. The ECOWAS Trade Liberalization Scheme (ETLS) had previously allowed for unrestricted market access among member states, promoting economic relations within the sub-region .
The rift between the three states that border the Sahara Desert and influential democracies like Nigeria and Ghana to the south has been widening. The three countries, each ruled by military juntas that came to power through recent coups in 2023, had established the Alliance of Sahel States as a security agreement following their exit from the ECOWAS bloc.
The Alliance has since evolved into an aspiring economic union, with plans to promote deeper military and financial integration, including introducing biometric passports. Last year, the three nations left ECOWAS, citing claims that the bloc had not sufficiently supported them in fighting Islamist insurgencies and addressing insecurity in their countries.
In retaliation, ECOWAS had imposed economic, political, and financial sanctions on the three nations in a bid to force them to return to constitutional order. However, this move has had little effect, and the imposition of the 0.5% levy marks a new chapter in the region’s economic relations.