AN ASSESSMENT OF THE COST AND IMPLEMENTATIONS OF ECOWAS FREE MOVEMENT POLICY ON THE ECONOMY OF NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Following their liberation from colonial domination, the West African sub-region's nations resolved to adopt a policy of regional economic and cultural integration in an effort to foster stability and growth. In Lagos, Nigeria, on May 28, 1975, sixteen West African countries signed a treaty creating the Economic Community of West African States (ECOWAS). The treaty sought to unify governments' efforts to uphold peace, stability, and security while also bolstering sub-regional economic integration through increasingly unrestricted mobility of people, capital, and goods (Afonughe, 2021).

The main goal of the Economic Community of West African States (ECOWAS), which was founded on May 28, 1975, is to encourage economic cooperation and integration among its member states (USTR). The Free Movement Protocol, which aims to ease the free movement of people, products, and services across member states, is one of ECOWAS's major objectives (Adepoju, etal). A three-phase plan was developed to attain the "complete freedom of movement" that the treaty anticipated, together with the rights of community people to enter, reside, and start economic activity on member state territory (Folasade & Atilade, 2022). As the most populous nation in West Africa and a major player in ECOWAS, Nigeria is essential to the execution and results of the Free Movement Policy. By lowering obstacles to mobility within the region, the program aims to accelerate economic growth, encourage cultural interchange, and improve trade.

The ECOWAS free movement policy's adoption in Nigeria has sparked questions about its potential effects on the country's economy, though. The policy's implementation has been criticized despite its intended promotion of economic integration and development due to potential costs and challenges. These include increased immigration and the possible strain it may have on infrastructure and public services (UNDP, 2020); potential revenue loss from the removal of tariffs and other trade barriers; increased competition for domestic businesses and the possibility of job losses; and potential security concerns and risks associated with free movement of people.

There were major features of the Protocol which was followed by four Supplementary Protocols:

1979 Protocol A/P.1/5/79 relating to Free Movement of Persons, Residence and Establishment

It outlines Community citizens' rights to enter, dwell, and settle themselves on member state territory (Art. 2(1)) 

Defines a 15-year timeline for implementing the following three phases: (I) residence, (II) establishment, and (III) right of entry and abolition of visas (Article 2). 

Requirements for entry into a member state's territory when carrying a valid travel document and an international health certificate (Article 3(1)

A/SP.1/7/85 Supplementary Protocol on the Code of Conduct for the Implementation of the Protocol on the Right of Residence and Establishment, Free Movement of Persons 

Second Phase (1986 Supplementary Protocol A/SP.1/7/86) (Right of Residence) 

1989 Amendment and Complement to Article 7 of the Protocol on Free Movement, Right of Residence, and Establishment (Supplemental Protocol A/SP.1/6/89) 

1990 On the Execution of the Third Phase (Right to Establishment), Supplementary Protocol A/SP.2/5/90 (UNHCR)

Through a thorough examination of these aspects, this research seeks to offer significant understandings into the wider consequences of the ECOWAS Free Movement Policy on Nigeria.

1.2 Statement of the Problem

Foreign direct investment (FDI) is expected to be drawn to Nigeria and other member states by the free movement policy since it expands the integrated market. A region with easy access to labor and goods will attract more investment, which will boost inflows of capital and spur the development of infrastructure and technology. Nigeria's industrial development and regional economic integration depend on this investment (UNCTAD, 2019).  However, due to the policy's facilitation of the flow of illegal weapons, criminals, and rebels, security concerns have increased. Cross-border terrorism, human trafficking, and smuggling occurrences have escalated in Nigeria, placing a burden on national security resources and affecting economic stability (Ewi & Salifu, 2017).

Nigeria's tourism and service industries is expected to gain from the policy's promotion of travel within the region by both leisure and business travelers. Increasing tourism boosts local economies and aids in economic diversification by driving growth in the transportation, accommodation, and retail sectors (OECD, 2019). However, Nigeria's public services and infrastructure, including housing, healthcare, and education, are under strain due to the country's migrant inflow. The problems of overcrowding, resource depletion, and declining service quality make sustainable growth more difficult (UNDP, 2020). Strong regulatory frameworks and effective border management are necessary for the policy to be implemented effectively. Nigeria is confronted with obstacles like poor infrastructure, corruption, and ineffective bureaucracy, which impede the seamless implementation of the strategy. Delays, higher expenses, and decreased policy efficacy are the outcomes of these problems (Adeniyi, 2019).

Although the ECOWAS free movement policy's implementation in Nigeria has sparked worries about its potential effects on the country's economy, there isn't enough empirical data to determine the precise costs and advantages of the policy. Put differently, little research has been done on the precise costs and effects of the ECOWAS free movement policy on the Nigerian economy, despite a number of worries. By evaluating the policy's economic effects on Nigeria, including those on trade, investment, employment, and public revenue, this study seeks to close this information vacuum. In doing so, it will address a few research issues that will offer insightful information on the implications of carrying out this procedure on the economy of Nigeria.

1.3 Objectives of the Study

To assess the effects of Nigeria's trade volumes, trade balance, and trade competitiveness on the ECOWAS free movement policy. 

To determine the potential and difficulties related to Nigeria's adoption of the ECOWAS free movement policy 

Examine the impact of greater mobility under the Free Movement Policy on the labor market in Nigeria. 

Examine how Nigerian society has been affected socially and culturally by the increased regional integration within ECOWAS, taking into account the effects on social cohesiveness, identity formation, and cultural variety. 

1.4 Research Questions

How much mobility does the Free Movement Policy allow among ECOWAS members, and how does that impact Nigeria's labor market? 

Considering social cohesiveness, identity formation, and cultural variety, what are the social and cultural ramifications of further regional integration within ECOWAS on Nigerian society? 

What remarkable effects have the ECOWAS free movement policy had on Nigeria's trade balance, volume, and competitiveness?

What are the main obstacles to and chances presented by Nigeria's adoption of the ECOWAS free movement policy? 

1.5 Significance of the Study

This research will contribute to initiatives aimed at increasing economic growth, promoting trade, and attracting investment within the ECOWAS region, as well as provide insight into the unique economic implications of the policy of free movement on Nigeria. In addition to providing a foundation for further research, the study will add to the body of knowledge already available on regional economic integration, trade, and investment.

Prominent in the essence of this study is the carful assessment of Nigeria’s trade volume, trade balance and competiveness in regards to ECOWAS Free Movement policy. as such, the study stands to determine the potentiality and difficulties associated with the adoption of this policy and Nigeria’s consent to it. This study also entails the effects and impacts created by the liberality of ease of movement and mobility under the auspices of the Free Movement Policy while intentionally examining how the Nigerian society has been affected in divers perspectives by this and the concept of regional integration. This examination shall consider the effects also on identity formation and cultural variation.

1.6 Scope of the Study

The study will concentrate on Nigeria, a member of the Economic Community of West African States (ECOWAS) that is economically significant, as well as the nations that border her in this sub regional organization. It will assess the effects of the ECOWAS Free Movement Policy with a focus on Nigeria, taking into account its relationships with other ECOWAS members. The study does not have spelled out time frame, however, it centers on 1979, when the ECOWAS Free Movement Protocol was put into effect, until the present. This temporal perspective will enable a justifiable study of recent advancements and changes as well as long-term patterns and repercussions. The Free Movement Policy's economic effects on Nigeria will be assessed by the study. This covers the movements of goods and services, patterns of investment, economic expansion, and the ways cross-border commerce supports Nigeria's economy.

1.7 Limitations of the Study

A fundamental constraint is the accessibility and dependability of the information. There was a dearth of precise and current information on social repercussions, economic indicators, and migration flows in the ECOWAS area, especially in Nigeria. Despite Nigeria's status as the elder brother of the sub-region, the study concentrates on Nigeria. Therefore, the research's conclusions cannot be applied to other ECOWAS members. A key constraint was the accessibility and dependability of the information. There was a dearth of precise and current information on social effects, economic indicators, and migration flows throughout the ECOWAS area, especially in Nigeria. Political and social variables, including public opinion and governmental policy, also had an impact on the study.

1.8 Research Methodology

This research uses a hybrid methodology. It makes use of historical patterns and descriptive research method. A comprehensive knowledge is ensured by the mixed-methods approach. In order to identify trends, the study tracks historical trace lines and secondary source data. The legitimacy of the study was further confirmed by media articles. This study methodology offers a thorough way for comprehending the economic impact and practical application of the ECOWAS free movement policy on Nigeria.

1.9 Definition of Terms

ECOWAS: Economic Community of West African State, a sub-regional block in West Africa

Policy: is a deliberate system of guidelines, rules, and regulations formulated and implemented by an organization, government, or institution to achieve specific goals, objectives, and outcomes.