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What Are The Economic Implications Of Guinea’s Coup On The Nigerian Economy ?

President of Guinea, Alpha Conde, on 10 august 2019, met President Muhammadu Buhari in Katsina State for Eid El-Kabir celebrations. Mr Conde’s visit was intended to  provide an opportunity to reinforce the strong relationship between the two leaders and both nations, and for them to engage in discussions on bilateral and global matters.

Fast forward to the 6th September 2021 , The Federal Government has condemned the coup d’etat that happened today in the Republic of Guinea, saying it violates ECOWAS Protocol on Democracy and Good Governance.

This was strongly condemned by the Federal Government in a statement titled, ‘Nigerian Government Condemns Could D’Etat In Guinea,’ signed by the Spokesperson, Ministry of Foreign Affairs, Esther Sunsuwa.

“The Government of Nigeria strongly condemns and rejects any unconstitutional change of government and therefore calls on those behind the coup to restore constitutional order without delay and protect lives and property.”

Impacts Of This Coup d’état

Guinea has no functioning free trade or export processing zones or warehouses, but a special economic zone is being set up in Boke, and a temporary license to conduct free trade transactions can be obtained with special permission from the Ministry of Economy and Finance.

Countries with bilateral investment protection agreements include Belgium, Benin, China, France, The Gambia, Germany, Iran, Italy, Japan, the Republic of Korea, Morocco, Nigeria, Saudi Arabia, Senegal, South Africa, Switzerland, Tunisia, Turkey, and the United Kingdom.

  • Nigeria Exports to Guinea was US$7.53 Million during 2019, according to the United Nations COMTRADE database on international trade. 

Data Source: Trading Economics

Conclusion

From data provided above it will be very unusual for the Nigerian economy to be significantly affected by the political turmoil ongoing in guinea. however, As Nigeria being regarded as an African power shell with respect to goodwill the intervention of the Nigerian government has the potency to be necessary.

 

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