The Centre for the Promotion of Private Enterprise (CPPE) has issued a statement expressing concerns regarding the increasing role of foreign nationals, particularly from China, in Nigeria’s retail and distributive trade. The organization emphasizes the importance of foreign investment while advocating for the protection of local entrepreneurial spaces that support millions of Nigerian livelihoods.
According to the CPPE’s Chief Executive Officer, Dr. Muda Yusuf, the trend of foreign traders establishing operations that compete directly with Nigerian businesses raises critical issues concerning fair competition, employment protection, and the integrity of the nation’s immigration and business permit systems.
Dr. Yusuf noted that Nigeria’s distributive trade sector plays a significant role in employment, especially for micro, small, and medium enterprises (MSMEs), with an estimated 27.5 percent of the workforce reliant on this sector. He highlighted that many Nigerians depend on various retail segments ranging from textiles and ICT products to automobile spare parts and household goods.
While acknowledging China as a crucial trading partner and a major source of imports, CPPE clarified that the concern revolves around the encroachment of foreign suppliers into markets where local capacity already exists. Dr. Yusuf warned that this foreign participation could threaten local employment, particularly in the context of rising unemployment and economic pressures faced by small businesses.
The CPPE called for an immediate review of regulations concerning business permits and expatriate quotas, emphasizing that these should only facilitate the entry of skills that are scarce within the local market. They stressed the need for clear boundaries between productive foreign investment and participation in retail sectors where Nigerians are already proficient.
While the CPPE is not advocating for restrictions against foreign investors, it insists on the necessity of enforcing existing legal frameworks to protect local enterprises. The organization urges the government to reassess its regulatory policies to ensure that the entry of foreign traders does not undermine Nigeria’s employment and economic priorities.
