Dr. Muda Yusuf calls for review of expatriate quotas, business permits and rules governing foreign participation….
The growing presence of foreign nationals, particularly Chinese traders, in Nigeria’s retail and distributive trade is raising fresh concerns over employment, competition and the enforcement of the country’s immigration and investment regulations.
The Centre for the Promotion of Private Enterprise (CPPE), in a statement by its Chief Executive Officer, Dr. Muda Yusuf, said the development requires urgent policy attention, particularly as millions of Nigerians depend on wholesale and retail activities for their livelihoods.
According to Yusuf, Nigeria’s distributive trade sector accounts for an estimated 27.5% of the country’s workforce, with Nigerians operating businesses across textiles and fabrics, ICT products and accessories, automobile spare parts and tyres, electrical goods, plumbing materials, household items and other consumer and industrial products.
He said the increasing movement of foreign traders into the retail segment could place additional pressure on Nigerian-owned businesses at a time when SMEs are already contending with high financing costs, weak consumer purchasing power, unemployment and broader economic difficulties.
Yusuf, however, stressed that the concern should not be interpreted as opposition to Chinese investment or Nigeria’s longstanding commercial relationship with China.
China remains one of Nigeria’s major trading partners and a leading source of imports, with Nigerian businesses relying on Chinese manufacturers, exporters and distributors for machinery, industrial inputs, consumer goods and technology products.
The CPPE chief said foreign investment remains important to Nigeria, particularly where it provides capital, technology, industrial capacity, employment, export opportunities and new skills.
The concern, he explained, is the increasing movement of some foreign suppliers and traders downstream into retail activities where Nigerian businesses already have substantial capacity.
Yusuf said situations where overseas manufacturers or major suppliers sell their products to Nigerian importers and distributors, before establishing businesses that compete directly with those same customers at the retail level, raise legitimate questions about market structure and fair competition.
He noted that retail trade remains one of the areas with relatively low barriers to entry and provides livelihoods for millions of Nigerians, especially small businesses, family enterprises and self-employed operators.
The CPPE said reports from market operators indicate growing foreign participation in areas including textiles, computers and telephone accessories, automobile spare parts, tyres and plumbing materials.
Yusuf also referenced protests and complaints by traders in some major commercial markets, saying such developments should not be ignored by policymakers.
Against this backdrop, the CPPE is calling for a comprehensive review of the rules governing foreign participation in Nigeria’s retail economy.
Yusuf urged relevant government agencies to scrutinise the issuance and enforcement of business permits, expatriate quotas, immigration approvals and other authorisations granted to foreign nationals operating in the country.
He argued that expatriate quotas should primarily be used to facilitate the entry of specialised skills and expertise that are scarce or unavailable locally, rather than providing access to economic activities where Nigerians already possess substantial capacity.
According to him, retail trading is generally not a specialised activity requiring scarce foreign expertise, making the growing participation of non-Nigerians in the sector a matter that requires closer regulatory scrutiny.
The CPPE chief was quick to clarify that the organisation is not advocating arbitrary restrictions on foreign investors or policies that could undermine legitimate investment.
Rather, he said the focus should be on consistent enforcement of existing laws, transparent regulations and a clearly defined investment policy.
Yusuf further argued that Nigeria needs a more calibrated approach to investment liberalisation, one that remains open to foreign capital while taking into account the country’s employment and enterprise-development priorities.
He said foreign investment should be particularly encouraged in sectors such as manufacturing, infrastructure, technology, agro-processing, mining and energy, where Nigeria requires significant capital, technical expertise and productive capacity.
The retail sector, he noted, presents a different policy consideration because of its importance to employment, entrepreneurship and the survival of small businesses.
The CPPE is therefore asking the government to investigate complaints from Nigerian traders about direct foreign competition, strengthen coordination among immigration, investment, trade and labour authorities, and establish clearer guidelines for foreign participation across the distributive trade value chain.
Yusuf also called for expatriate quotas to be tied to demonstrable skills gaps and specialised competencies, while urging foreign businesses to direct more investment towards manufacturing, processing, technology, logistics and other productive activities rather than displacing indigenous businesses at the retail end.
He maintained that protecting domestic enterprise does not have to come at the expense of foreign investment.
For the CPPE, the objective is to create a system that allows Nigeria to benefit from international capital and expertise while preserving the entrepreneurial space that supports millions of Nigerians.
Yusuf said Nigeria’s investment policy must therefore remain open but be carefully aligned with the country’s priorities for employment, SME development, entrepreneurship and industrialisation.
