The Centre for the Promotion of Private Enterprise (CPPE) has called on the Nigerian Government to review the regulatory framework governing the activities of foreign traders, particularly those involved in the country’s retail and distributive trade sector.
The group raised concerns over the growing participation of foreign nationals, especially Chinese traders, in areas such as textiles and fabrics, phone and computer accessories, automobile spare parts, tyres, plumbing materials and household goods.
According to CPPE, Nigeria’s distributive trade sector is a major source of employment and income for millions of Nigerians. The organisation estimates that the sector accounts for about 27.5 per cent of the country’s workforce, with micro, small and medium-sized enterprises making up a significant part of the sector.
CPPE Chief Executive Officer, Muda Yusuf, said the concerns were not directed at Chinese investment or Nigeria’s wider economic relationship with China. Rather, the organisation wants clearer rules governing how foreign businesses participate in the domestic retail market.
The group argued that problems may arise when foreign manufacturers or major suppliers move further down the distribution chain and begin selling directly to consumers. According to CPPE, such a situation could increase competitive pressure on Nigerian businesses that previously operated as distributors or retailers for those products.
CPPE has therefore urged relevant government agencies to examine business permits, expatriate quotas, immigration approvals and other authorisations issued to foreign nationals operating in the retail sector.
The organisation said expatriate quotas should primarily be used to bring in skills and expertise that are scarce or unavailable locally. It questioned whether basic retail trading activities should qualify for the same level of foreign participation.
At the same time, CPPE said Nigeria should remain open to legitimate foreign investment. It encouraged international investors to focus more on areas such as manufacturing, infrastructure, technology, agro-processing, mining and energy, where the country needs capital, technology and technical expertise.
The group also called for stronger coordination among government agencies responsible for immigration, trade, investment and labour matters.
CPPE said the objective should be to maintain foreign investment while ensuring fair competition, regulatory compliance, employment protection and opportunities for Nigerian-owned businesses.
The call comes as Nigerian businesses continue to contend with high operating costs, expensive financing and weak consumer demand. The debate over foreign participation in retail is therefore likely to remain an important issue for policymakers and business groups.
