Second-hand vehicle markets in West Africa: A source of regional disintegration, trade informality and welfare losses

Abstract

This article critiques the second-hand vehicle markets in the West African region, focusing on the triad trading arrangements among Nigeria, Benin, Togo, and Niger. These countries are connected by a number of underlying conflicting interests in the second-hand vehicles trade. Benin and Togo are incentivised by the revenues derived from re-export trade and port operations. Niger provides a proxy market for the illegal re-export of these vehicles to Nigeria, with the latter suffering huge welfare losses as a major consuming nation. We conclude that by offering conflicting benefits to the West African countries, the second-hand vehicle market provides disincentives against true regional integration.