Difference in factor endowment has necessitated the need for cross-border trade which involves people from two different countries trading items of value with each other and as such laws, rules, regulation and medium of exchange is needed for economic development to take place. This paper investigates the impact of informal cross-border trade on national economic development: A case study of Nigerian Southern Borders. The study made use of Yamene (1967) to ascertain the sample size as a total of one-hundred and one (101) population was targeted from six different professions. The qualitative research design and purposive sampling technique was applied in this research work as the study also utilized oral interview technique. The study made use of descriptive statistics, multiple regression and pearson product moment correlation coefficient analysis for the purpose of data analysis. The result of the analysis indicated a positive and significant relationship between cross-border trade and per capita income whereas a negative and insignificant relationship was identified between informal goods coming in and going out of the country. Thus, the study recommends the following - fully integrated e-payment systems for duties, streamlined goods clearing systems, robust whistle blowing system tied to good reward system, frequent transfer of officers in and out of the border posts, enhanced compensation system for officers, adoption of incentive and regulatory policies by government to promote indigenous entrepreneurship and lastly, enhanced profiling system of duty payers for extension of discounts, rebates and waivers based on their transaction history from time to time. Keywords: Import, Export, Fine, Border, Security. DOI: 10.7176/DCS/11-7-06 Publication date: September 30th 2021