The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over the growing involvement of foreign nationals, particularly Chinese traders, in Nigeria’s retail and distributive trade sector.
CPPE Chief Executive Officer, Dr Muda Yusuf, said the trend could put pressure on Nigerian-owned businesses and jobs, especially at a time when SMEs are already battling high financing costs, weak consumer purchasing power and other economic challenges.
Yusuf, in a statement on Sunday, said the concern was not about Chinese investment or Nigeria’s trade relationship with China, but the increasing movement of some foreign suppliers and traders into retail segments where Nigerians already have substantial capacity.
He said the distributive trade sector accounts for an estimated 27.5 per cent of Nigeria’s workforce, with millions of Nigerians depending on businesses dealing in textiles, ICT accessories, auto parts, tyres, electrical and plumbing materials and other consumer goods.
The CPPE urged the Federal Government to review business permits, expatriate quotas and immigration approvals issued to foreign nationals operating in the retail sector.
According to Yusuf, expatriate quotas should be used primarily to bring in skills and expertise that are scarce locally and should not facilitate the displacement of Nigerians in activities where domestic capacity already exists.
He also called for investigations into complaints by Nigerian traders and clearer rules defining foreign participation across the distributive trade value chain.
Yusuf stressed that Nigeria should remain open to foreign investment, particularly in manufacturing, infrastructure, technology, agro-processing, mining and energy.
“Nigeria needs foreign investment, but it also needs to protect the entrepreneurial space that sustains millions of domestic businesses and livelihoods,” he said.
The CPPE advocated a balanced investment policy that promotes foreign capital and technology while protecting fair competition, jobs and indigenous enterprise.
Comment here