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Sub-Saharan Africa

Nigeria Expanded Trade and Transport (NEXTT)

Client: United States Agency for International Development

2012-2016

Challenge:

One of the main trade corridors in Nigeria, stretching from the Lagos ports all the way to Jibiya in the north and abbreviated the LAKAJI Corridor (Lagos-Kano-Jibiya), has a history of congestion and delays at ports and checkpoints. Delays in transportation due to poor infrastructure and trade policies lead affect the agriculture sector in Nigeria, leading to increased food waste and higher prices for consumers.

What we’re doing:

Under NEXTT, CARANA supports Nigerian government Ministries and coordinating bodies to formulate, coordinate, and implement trade policies, regulatory frameworks, and facilitation services in Nigeria along the LAKAJI transportation corridor (Lagos – Kano – Jibiya) in ways that maximize competitiveness, support expanded trade, and create investment and job opportunities. Specifically, NEXTT targets improved trade policy and trade facilitation through 1) developing effective mechanisms for stakeholder engagement in the most critical constraints to trade and investment, 2) facilitating performance improvements in Customs and port clearance times to reduce costs and time to trade goods, and 3) creating improved processes for developing food safety standards and infrastructure.

Impact:

The NEXTT Project generated an increase in exports from $1.99 million to $10.11 million in the past year. In addition, the 2015 assessment of time and cost to trade along the LAKAJI Corridor, which was a follow-up to the baseline study conducted in 2013, revealed remarkable improvements. This includes a 25% reduction in time of importing goods and 5% decrease in exporting goods through Lagos to the Jibiya border, as well as a 35% decrease in cost to import and 21% decrease in cost to export.

Over the life of the project, NEXTT interventions are expected to yield:

  • $25 million in new investments in projects along the LAKAJI Corridor;
  • A 30% reduction in transport costs along the LAKAJI corridor;
  • Dynamic trade policy coordination mechanisms that integrate public and private sector priorities into a strategic framework for engagement with trading partners;
  • Modernization of customs procedures and systems for meeting international standards for agricultural goods; and
  • $30 million in additional exports as a result of more strategic positioning of Nigerian exporters by export promotion institutions and industry groups.

 

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