Nigeria calls for review of rules on foreigners’ participation in retail trade — Premium Times Nigeria
Nigeria’s Centre for the Promotion of Private Enterprise (CPPE) has called for a review of the rules governing foreigners’ participation in the country’s retail and distribution trade. The organization said that the growing presence of foreign traders, particularly Chinese citizens, could affect employment, fair competition, investment policy, and compliance with immigration requirements and business permit rules.
As Premium Times Nigeria reports, the CPPE’s position was set out in an analytical note signed by the organization’s Director General, Muda Yusuf. The centre noted that distribution trade employs, by its estimate, 27.5% of Nigeria’s workforce and is a source of income for micro, small and medium-sized enterprises.
Traders’ protest in Lagos
The CPPE statement came after a protest by auto parts sellers at the Lagos International Trade Fair Complex in Lagos. They expressed dissatisfaction with the alleged involvement of Chinese citizens in retail trade and said that Chinese companies sell goods directly to customers, competing with local retailers.
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After the protest, the traders told the publication that they were not demanding that Chinese businesses leave Nigeria. According to them, they insist that these companies should not engage in retail trade in the market area, as this affects their operations.
Call to verify permits
The CPPE stressed that its remarks are not directed against Chinese investment or Nigeria’s economic ties with China. The organization called China one of Nigeria’s key trading partners and the main source of its imports. At the same time, the centre expressed concern that some foreign manufacturers and large suppliers are moving into the retail segment, where, in the CPPE’s view, Nigerian companies already have significant opportunities.
The organization called on the authorities to verify compliance with requirements for business permits, quotas for foreign specialists, immigration approvals and other permits for foreigners working in the country. The CPPE also proposed more clearly defining the permissible forms of foreign participation in the distribution trade chain and encouraging investors to invest in manufacturing, processing, technology and logistics rather than competing with local businesses at the retail level.
