Amid ongoing terrorist activities by Boko Haram in northern Cameroon, particularly in the Far North, contraband trade with Nigeria and neighbouring countries has resulted in a significant increase in Cameroon’s deficit, reaching 50.7 billion FCFA (around US$89.8 million).
A report from Cameroon’s National Institute of Statistics (NIS) regarding informal transborder trade for 2024 indicates that this deficit is increasing compared to last year’s numbers, which reached 44.6 billion FCFA (approximately US$79 million). This deficit was noted in 2023 following the record high of 71.8 billion FCFA (around US$79 million) in 2022.
The deficit, which is in Cameroon’s disfavour, is principally due to the heavy weight of informal purchases from Nigeria, a neighbouring country with a commercial deficit of 111,73 billion FCFA in 2024 after the 2022 peak of 168.04 billion FCFA.
“The structural disequilibrium of the informal commercial balance with Nigeria can be explained by two closely linked factors namely, the extensive land border with this neighbouring country (Nigeria) doubled with the permeability of the border and the dynamism of the Nigerian economy accentuated by the drop in the exchange rate of its currency, the naira, as well as the competitivity of its offer in the hydrocarbons sector,” the NIS noted.
The NIS added that informal importations from neighbouring countries, including Nigeria, which shares a common border of 1,500 kilometres with Cameroon from north to south, have two principal entry points: the Far North and the North within the northerly part of Cameroon and the Southwest in the southern part.
The majority of imported goods primarily pass through the Far North region, accounting for 49.4 per cent of imports in 2024, followed by the North region at 20.8 per cent. This trend is largely influenced by contraband networks dealing in fuel, livestock, and manufactured products. According to NIS, fuel and lubricants make up the largest share of these imports at 22.1 per cent, with live animals following at 14.6 per cent.
Over 70 per cent of smuggling activities between Cameroon and its neighbouring countries, especially Nigeria, occur in the Far North and North regions. This continues despite the insecurity caused by Boko Haram militants operating in the Far North of Cameroon.
On the contrary, the influx of transit through the Southwest Region has dropped (-38.7 per cent), due to the Anglophone crisis, according to the report. The Adamawa (-17.5 per cent) and the East (-3.3 per cent) have also seen their imports contrast due to security and logistical difficulties (degraded roads and armed groups).
Since 2016, separatist activities have disturbed the Southwest and Northwest regions of Cameroon, which have boundaries with Nigeria. These activities are slowing down economic activity. These same activities are parallel to exactions by armed groups from the Central African Republic, which endanger the corridors of the East and Adamawa regions of Cameroon.
Amid ongoing Boko Haram activities in northern Cameroon, contraband trade with Nigeria has led to a significant increase in Cameroon’s deficit, now at 50.7 billion FCFA (US$89.8 million). According to Cameroon’s National Institute of Statistics, this deficit reflects an upward trend compared to previous years, driven by informal imports from Nigeria, exacerbated by the extensive and permeable land border shared between the two countries.
Informal imports, primarily fuel, livestock, and manufactured products, predominantly come through the Far North, accounting for almost half of the total. Despite security threats from Boko Haram, illegal trade persists heavily in the Far North and North regions. Conversely, imports through the Southwest Region have declined due to the Anglophone crisis, while the East and Adamawa regions also face economic slowdowns due to logistical challenges and armed threats.