Nigeria Risks Falling Behind in Africa’s Visa-Free Wave

Nigeria has made significant strides by introducing electronic visa applications, a move that proves the country's efforts to streamline its visa process. However, the country's high visa-on-arrival fee has an overarching effect.

Nigeria Immigration Service recently announced its decision to move all its visa applications online. This signaled the country’s commitment to easing visa applications and immigration. However, its high cost of visa applications still places restrictions on travelers, including its African counterparts.

African Continental Free Trade Area (AfCFTA) is an ambitious agreement among African countries to create a uniform market for African entrepreneurs. One of the biggest hurdles is visa-required travel within the continent. Nigeria still requires travelers from African countries to apply for a visa upon arrival before granting entry. While this is close to a free pass, it falls part of the restriction on free travel.

A growing number of African nations are making notable progress in facilitating travel across the continent, according to the Africa Visa Openness Index (AVOI). In January, Ghana became the fifth country to grant visa-free entry for all African nationals. It joined the likes of Rwanda, Seychelles, Benin, and The Gambia. 

Among the 54 countries evaluated in the AVOI in 2024, 17 significantly improved their visa policies, building upon the 15 countries that demonstrated progress the previous year. Nigeria, in particular, made significant strides by introducing electronic visa applications, a move that proves the country’s efforts to streamline its visa process. However, the country’s high visa-on-arrival fee has an overarching effect.

In 2023, Nigeria doubled its visa-on-arrival biometric fee to $170, up from $90. This steep increase continues to deter investors and tourists, undermining the government’s economic recovery efforts. “If visa fees are too high, some tourists [and entrepreneurs] may decide to visit a different country that has more affordable visa fees or no visa requirements at all,” an Abraham Accords Peace Institute’s analysis reveals. 

In contrast, relaxed visa policies like low cost or total removal of visa requirements can stimulate economic growth by attracting foreign exchange, Seyi Adewale, CEO of Mainstream Cargo Limited, argues.

A notable example is Mauritius and Seychelles’ visa policies and their effects on tourism. Before 2013, Mauritius required visitors to obtain visas before arrival, whereas Seychelles adopted a more open approach, requiring no entry visas. This divergence in policy led to a significant disparity in tourist growth between the two nations. 

In the five years preceding 2013, Seychelles experienced a remarkable 7 percent annual growth in tourist arrivals, while Mauritius struggled to gain traction, with its tourist numbers remaining largely stagnant at 4 percent. In a bid to revitalize the tourism sector, the Mauritian Government quickly implemented a visa liberalisation policy, easing travel restrictions for citizens of 30 African nations and 75 countries worldwide.

Nigeria’s tourism sector has long been underperforming, contributing a mere 2 percent to the country’s Gross Domestic Product (GDP). In contrast, Seychelles’ visa-free policy for all Africans boasts a thriving tourism industry accounting for a significant 20 percent of its GDP.

Dr. Audu Bello, a lecturer at the Department of Economics, Usmanu Danfodiyo University, says the removal of visa barriers can be a game-changer for foreign investors, researchers, and entrepreneurs. Speaking with The Liberalist, he emphasised visa-free travel facilitates cross-border cooperation and collaboration, enabling individuals to capitalise on new opportunities with ease.

“Countries with effective visa-free policies tend to witness a surge in tourism, underscoring the potential economic benefits of such policies,” he said. 

According to the World Economic Forum’s rankings, Nigeria trails behind its African counterparts in terms of travel and tourism competitiveness, ranking 129th of 136. Ghana and South Africa, with more favorable visa policies, secured 120th and 53rd respectively. With its new visa-free policy, Ghana’s position is expected to jack up in the coming years. 

Visa-free Policy Could Strengthen the Naira 

In the words of the African Development Bank, “visas represent high cost in terms of money and time for the individual applying,” just the same way it is a missed opportunity for the local economy; such opportunities like an improvement of a country’s currency through foreign exchange inflows. 

According to Dr. Bello, Nigeria could be missing out on one of the ways to strengthen the naira. He said the more open a country is to visitors, the more demand there will be for its currency. As a result, the value of the naira would increase due to high demand. 

He explained when visitors visit Nigeria, they would need to exchange the foreign currency they brought into naira, which would drive up demand for the local currency and, in turn, strengthen the currency’s value. Victor Ogiemwonyi, a former investment banker, suggesting an effective way of creating demands for the naira,  proposed establishing an appropriate policy and environment that encourages demand.

However, Dr. Bello cautioned the government needs to address internal issues, such as insecurity, to create a safe environment for visitors when implementing a visa-free policy.

Oluwole Ojewale, a Regional Coordinator at the Institute for Security Studies, emphasises the need for Nigeria to fortify its internal security framework by enhancing the capabilities of security agencies, such as customs and immigration officers, to respond effectively to crimes within their jurisdictions. This is crucial for maintaining national security and preventing potential threats from a visa-free policy.

If implemented, “the visa-free policy is a commendable initiative, as it creates a ripple effect where countries that adopt it gain an advantage over those that don’t,” says Ojewale. “Essentially, the more countries that embrace visa-free travel, the more it puts pressure on others to follow suit, or risk being left behind.”

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