Chinese traders’ incursion into retail threatening jobs, CPPE raises alarm

Chinwe Odita

The Centre for the Promotion of Private Enterprise, CPPE, has raised the alarm over the growing incursion of foreign nationals, particularly Chinese traders, into Nigeria’s retail and distributive trade, warning that it poses a threat to jobs and indigenous businesses.

The organisation said the trend has implications for employment, fair competition, investment policy and enforcement of immigration and business-permit regulations.

The concern was contained in a policy brief released on Sunday and signed by its Chief Executive Officer, Muda Yusuf.

Yusuf noted that Nigeria’s distributive trade sector remains a major source of employment for millions of Nigerians, especially those operating micro, small and medium enterprises, employing an estimated 27.5 per cent of the workforce.

The statement followed a protest by auto spare parts traders at the Lagos International Trade Fair Complex against the alleged involvement of some Chinese nationals in retail trading.

The protesters had accused Chinese businesses of selling directly to customers and competing with local retailers, though they later clarified that they were not asking them to leave Nigeria but to desist from retail activities around the market.

CPPE said similar complaints were emerging in textiles and fabrics, computers and telephone accessories, automobile spare parts, tyres and plumbing materials.

“There have also been protests and complaints by traders in some major commercial markets. These developments should not be ignored,” it said.

The think-tank said its concerns were not targeted at Chinese investment, noting that China remains one of Nigeria’s most important trading partners and leading source of imports.

“The CPPE therefore stresses that the concern is not about Chinese investment or Nigeria’s economic relationship with China. Foreign investment remains important to Nigeria’s development, particularly where it brings capital, technology, industrial capacity, employment, exports and new capabilities,” it said.

However, it faulted a situation where overseas manufacturers or major suppliers who sell to Nigerian importers later establish operations that compete directly with those businesses at the retail level.

The organisation called for a comprehensive review of the regulatory framework governing foreign participation in retail and urged government agencies to examine enforcement of business permits, expatriate quotas and immigration approvals.

“Expatriate quotas should principally facilitate the entry of skills, expertise and capabilities that are scarce or unavailable locally.

They should not become instruments for displacing Nigerians from economic activities where substantial domestic competence already exists,” CPPE said.

It urged government to encourage foreign businesses to invest upstream in manufacturing, processing, technology and logistics rather than compete at the retail end, stressing that the goal should be fair competition and employment protection, not protectionism.

“Nigeria needs foreign investment, but it also needs to protect the entrepreneurial space that sustains millions of domestic businesses and livelihoods,” it added.