The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over the growing presence of foreign traders, particularly Chinese nationals, in Nigeria’s retail market. CPPE Chief Executive Officer, Muda Yusuf, said the trend could put additional pressure on Nigerian businesses and jobs in sectors where local entrepreneurs already have significant capacity.

According to Yusuf, the concern cuts across several areas of the economy, including textiles and fabrics, ICT products and accessories, automobile spare parts and tyres, electrical products, plumbing materials, household goods and other consumer products. He noted that Nigeria’s distributive trade sector provides employment and livelihoods for millions of people, particularly micro, small and medium-sized enterprises, at a time when businesses are already dealing with high financing costs, weak consumer purchasing power, unemployment and poverty.

The CPPE also pointed to complaints and protests by traders in some major commercial markets over the participation of foreign nationals in retail trading. Yusuf stressed that the organisation’s position is not against Chinese investment or Nigeria’s broader economic relationship with China, describing China as one of Nigeria’s major trading partners and a leading source of imports. Rather, he said the concern is about foreign suppliers and traders moving further down the supply chain to compete directly with Nigerian businesses in retail activities where local capacity already exists.

Yusuf called for a review of business permits, expatriate quotas, immigration approvals and other authorisations granted to foreign nationals operating in Nigeria’s retail and distributive trade sector. He argued that expatriate quotas should primarily address genuine skills gaps and bring in expertise that is unavailable locally, while urging stronger enforcement of existing investment and immigration rules. He also called for clearer guidelines and better coordination among immigration, investment, trade and labour authorities.

The CPPE said Nigeria should continue to welcome foreign investment while directing more capital and technical expertise toward sectors such as manufacturing, infrastructure, technology, agro-processing, mining, energy and logistics. Yusuf maintained that a clearer investment framework could help balance Nigeria’s need for foreign capital with the protection and development of local businesses and employment. The debate is likely to keep the focus on how Nigeria can attract international investment while ensuring that domestic enterprises remain competitive in the retail market.

source: The cable