Attacks by Boko Haram in Northern Nigeria as well as the closure of the Nigeria-Niger border and expulsions of foreigners by Nigerian security forces are beginning to hurt the economy of the neighbouring Niger, the United Nations‘ Humanitarian Service (UNHS) has reported.

The news agency reported that Diffa, the major economic hub of Niger in Southern part of the country, is witnessing unprecedented economic paralysis, even as there are fears of a spillover of the Boko Haram insurgency following the discovery of a sleeper cell of the sect in Diffa.

The UN agency reported that Diffa, the arid southeastern city of Niger, has benefited from being closer to Nigeria than to commercial centers in Niger as staple grains, fuel, clothing and other items make their way across the border to the town at attractive prices.

According to the agency, Diffa’s main outputs: livestock, dairy produce and red pepper have also found a ready market in Nigeria while common languages and family ties are said to have strengthened the link between Diffa and some Nigerian towns, while Nigerian currency is said to be the main currency there.

“But Nigeria’s latest export, Boko Haram , is less welcome. It has forced the authorities to close the border, with tragic consequences for Diffa, just as it is trying to deal with the worst drought in recent years,’the agency reported.

It added that these problems come at a bad time for Niger, given that drought is already pushing up food and livestock prices while local markets, deprived of customers from Nigeria, are suffering.

“The loss of cross-border trade and workers’ remittances from Nigeria really hurt Niger. In a sense, the economic “safety valve” that has formerly allowed people from Niger to seek money and work in Nigeria when times are tough at home has been affected,” the report noted.

According to the report, Boko Haram’s violence in Nigeria is also having an effect on the security situation in Diffa.