Bismarck Rewane: Smuggling Costs Nigeria Billions

Bismarck Rewane, the Chief Executive Officer of Financial Derivatives Company Limited, stated that Nigeria's economic growth is contingent upon the government's ability to close gaps that allow smuggling to flourish. Speaking at the LBS Breakfast Session titled ‘Smuggling Paradox: Good for the Few, Bad for the Economy’, he described smuggling as a form of trade that avoids duties and regulations, significantly impacting local manufacturers and formal businesses.

Rewane noted that while smuggling has decreased, persistent price gaps and porous borders hinder complete eradication. He highlighted that the value of seizures by the Nigerian Customs Service rose from N17.56 billion in 2023 to N59 billion in 2025, indicating a correlation between the depreciation of the Naira and the increase in smuggled goods.

Rewane identified local manufacturers, formal businesses, and the government as the primary victims of smuggling, which also exposes consumers to unsafe products. He suggested that enhancing formal ECOWAS and Intra-African trade could mitigate smuggling incentives.