The Centre for the Promotion of Private Enterprise (CPPE) has called for a review of business permits, expatriate quotas and immigration approvals for foreign nationals operating in Nigeria’s retail and distributive trade, warning that growing foreign participation could put pressure on Nigerian businesses and jobs in areas where substantial domestic capacity already exists.
In a statement on Sunday, CPPE Chief Executive Officer, Muda Yusuf, said the concern was particularly linked to the growing presence of foreign traders, including Chinese nationals, across parts of Nigeria’s retail market.
He said the development was being observed in sectors including textiles and fabrics, ICT products and accessories, automobile spare parts and tyres, electrical products, plumbing materials, household goods, as well as other consumer and industrial products.
“The increasing penetration of foreign traders into the retail segment therefore deserves urgent policy attention,” Yusuf said.
According to him, Nigeria’s distributive trade sector employs an estimated 27.5 per cent of the country’s workforce, making it a major source of employment and livelihood, particularly for micro, small and medium-sized enterprises.
Yusuf said the issue had become more significant against the backdrop of an already difficult business environment characterised by unemployment, poverty, weak consumer purchasing power and high financing costs.
He also pointed to protests and complaints by traders in some major commercial markets, saying such developments should not be ignored.
CPPE Distinguishes Foreign Investment From Retail Competition
Yusuf stressed that CPPE’s position was not directed against Chinese investment or Nigeria’s broader economic relationship with China.
“China remains one of Nigeria’s most important trading partners and the leading source of the country’s imports,” he said.
He noted that Nigerian businesses have longstanding commercial relationships with Chinese manufacturers, exporters and major distributors.
According to Yusuf, the concern is specifically about the movement of some foreign suppliers and traders downstream into retail segments where Nigerians already possess substantial capacity.
“A situation where overseas manufacturers or major suppliers sell products to Nigerian importers and distributors, and subsequently establish operations that compete directly with those same businesses at the retail end of the market, creates legitimate concerns about market structure and fair competition,” he said.
CPPE Seeks Review of Foreign Traders’ Business Permits
The CPPE chief called for a review of business permits, expatriate quotas, immigration approvals and other authorisations granted to foreign nationals operating in Nigeria’s retail and distributive trade.
He said expatriate quotas should primarily facilitate the entry of skills, expertise and capabilities that are scarce or unavailable locally.
“They should not become instruments for displacing Nigerians from economic activities where substantial domestic competence already exists,” Yusuf said.
He argued that retail trading is generally not a specialised activity requiring scarce foreign expertise, adding that the increasing participation of non-nationals in such activities raises questions about the effectiveness of Nigeria’s regulatory and immigration framework.
Yusuf therefore called for stronger enforcement of investment and immigration rules, investigation of complaints from Nigerian traders, clearer guidelines for foreign participation across the distributive trade value chain and improved coordination among immigration, investment, trade and labour authorities.
He also advocated linking expatriate quotas to demonstrable skills gaps and specialised competencies.
CPPE Calls for Investment to Target Productive Sectors
Yusuf clarified that CPPE was not advocating arbitrary restrictions or hostility towards foreign investors.
“For clarity, the CPPE is not calling for arbitrary restrictions or hostility towards foreign investors but a consistent and credible enforcement of existing laws, transparent rules and a clearly defined investment policy,” he said.
He said foreign investment should continue to be encouraged in sectors such as manufacturing, infrastructure, technology, agro-processing, mining, energy and logistics, where Nigeria requires additional capital and technical capabilities.
According to him, greater emphasis should be placed on investments that support industrialisation, enterprise development and employment rather than basic retail activities where domestic capacity is already substantial.
Yusuf said Nigeria’s investment policy should remain open to foreign capital while also reflecting the country’s employment, enterprise-development and industrialisation priorities.