Bilateral formal trade relations between Nigeria and the Republic of Benin have increased significantly in the last 10 years. There has also been an increase in the smuggling of contraband goods due to the porous borders. This briefing explores the nexus between bilateral trade and politico-administrative border relations between the two countries. It interrogates the character of the border relations and consequences for the political economy of trade. The briefing highlights that border politics drive formal and informal trade relations. It also highlights other drivers of illegal activities in the border areas, including the cultural affinity between inhabitants living within the contiguous borders, and compromised government officials.