West Africa may face soaring food prices, escalating hunger crisis after ECOWAS breakup

The recent departure of Burkina Faso, Mali, and Niger from the Economic Community of West African States (ECOWAS) could significantly worsen food security and escalate prices in the region, according to a new analysis published by The Conversation.
These three junta-led countries, which together account for 16% of ECOWAS’s population, left the bloc in January 2025 following military coups that led to sanctions and the eventual creation of the Alliance of Sahel States (AES). According to Danielle Resnick, senior research fellow from the International Food Policy Research Institute (IFPRI), this move has disrupted vital trade agreements and could raise food costs across both the departing states and the remaining ECOWAS members. While food was exempt from initial sanctions, increased logistical challenges had already led to sharp price increases, including a 38% rise in rice prices in Niger between July 2023 and February 2024. This is expected to worsen with the three countries’ exit from the ECOWAS customs union, which facilitated tariff-free trade among members.
The departure also threatens to reduce access to regional markets, as the countries lose access to key ports like Tema and Lagos, vital for imports and exports. Burkina Faso and Niger, for example, rely on these routes for vegetable and livestock exports to Ghana and Ivory Coast. Increased tariffs on food imports and a community levy could further raise prices for both local and international consumers. Compounding the issue, the exit may impact electricity access and key resources like wheat flour and edible oils, further straining food production. With hunger already a severe issue, the ripple effects of this political shift are likely to deepen food insecurity in a region where millions already face crisis conditions.

Nigeria cracks down on Binance in $81.5bn lawsuit over tax evasion and economic losses
Nigeria has filed a lawsuit against the crypto giant Binance, demanding $81.5 billion in damages and unpaid taxes, claiming the cryptocurrency exchange’s operations in the country worsened its currency issues and caused significant economic losses.
The Nigerian government is seeking $79.5 billion in damages and an additional $2 billion for back taxes, along with penalties, including interest on unpaid taxes. Binance, which is not registered in Nigeria, has been accused of failing to comply with the country’s tax laws, including non-payment of corporate income tax and value-added tax. The Federal Inland Revenue Service (FIRS) alleges that Binance’s significant economic presence in Nigeria makes it liable for taxes. FIRS is also seeking a 10% annual penalty and 26.75% interest on the outstanding amounts, based on the Central Bank of Nigeria’s lending rate. The lawsuit follows increasing scrutiny of Binance’s operations in Nigeria, including the suspension of naira-related transactions in March 2024.
Nigerian authorities have linked Binance to currency distortions, particularly after the company became a platform of choice for naira trading, contributing to the country’s foreign exchange crisis. In 2024, Nigerian authorities detained two of Binance’s executives in 2024, linking cryptocurrency platforms to naira trading. The crypto giant, which has previously denied claims of money laundering and tax evasion, is contesting the charges. The company maintains that it is cooperating with Nigeria’s tax authorities to resolve past obligations. While the case remains under judicial review, Binance has acknowledged the lawsuit, stating that it is aware of the legal action and will provide updates as necessary. Meanwhile, the Nigerian government has said it was revising regulations with a view of establishing a framework for taxing cryptocurrency transactions and digital assets, seeking to capitalize on the the widespread use of cryptocurrency among its residents.