The Politics of Trade Disputes in the Fourth Republic: The Case of Ghana and Nigeria

Abstract

The relationship between Ghana and Nigeria over the years can be described as oscillatory because of the occasional twist and turn. Notably, a trade dispute was one of the challenges that marred the relationship between the two countries. Historically, trade disputes emerged in the 1930s as a result of the cocoa hold-up crisis in 1932, and this led to the call by the National Crusade for the protection of Ghanaian enterprises to expel foreign traders, predominantly Nigerians. This phenomenon continued during Busia's regime, where he expelled a large number of Nigerian traders through the Aliens Compliance Order in 1969. Buhari's regime also responded in 1983-85 by expelling over one million Ghanaians from Nigeria for economic and trade reasons. In 2012, the government of Ghana employed a contingent economic policy that led to the closure of many Nigerian shops. Moreover, the closure of the Nigerian land borders on Ghana and other trading partners revived the trade tension between the two countries, where Ghanaians retaliated with other draconian policies. The intermittent trade disputes between the two countries triggered the quest of the researchers to assess the fundamental driving forces of the impasse, identify the politico-economic ramifications of the disputes on both countries and provide some recommendations to deal with the problem. Relevant related literature was reviewed thematically, and International Regime Theory was used to underpin the research. The study used a qualitative research approach to gather in-depth data from respondents through interviews and observations. Thematic analysis was used as an approach for data interpretation and discussion. The relevant literature and the findings revealed that the inconsistencies of ECOWAS protocols with the national trade policies, the use of protectionist economic policies such as the "prohibited goods" policy by Nigeria against Ghana, and the implementation of the GIPC Act 2013 (865), Nigeria’s border closure, and lockdown of Nigerian retail shops in Ghana were some of the fundamental driving forces of the trade disputes between the countries in the fourth republic. Economically, the occasional trade disturbances led to the loss of capital and revenue for traders from both sides. Notwithstanding these challenges, there was an initiative by both governments to find a lasting solution to the menace. The research concluded with some recommendations for policy and praxis.

Keywords: Trade Dispute, ECOWAS Protocols, Traders Association, West Africa, Fourth Republic

DOI: 10.7176/JESD/14-10-07

Publication date:May 31^st 2023