The Manufacturers Association of Nigeria has urged the Federal Government to regulate foreign nationals' participation in Nigeria's retail trade. This call comes amid concerns over the activities of Chinese traders in last-mile retail. Director-General of MAN, Segun Ajayi-Kadir, made the statement on the sidelines of a press briefing for the association's 54th Annual General Meeting.
The MAN Director-General noted that several countries have frameworks limiting foreign companies' engagement in certain sectors. He encouraged the press to scrutinize the matter, emphasizing the importance of trade and immigration issues. Ajayi-Kadir stated that it is crucial to examine why foreign nationals enter a country and what activities they engage in.
MAN supports the patronage of made-in-Nigeria products but opposes foreigners encroaching on spaces reserved for local businesses without regulatory oversight. Ajayi-Kadir stressed that existing laws should be reviewed to address this issue. The Centre for the Promotion of Private Enterprise also raised concerns about foreign nationals, particularly Chinese traders, in Nigeria's retail and distributive trade sector.
The CPPE noted that the distributive trade sector employs an estimated 27.5 per cent of Nigeria's workforce. The think tank urged the government to review business permits and expatriate quotas granted to foreign nationals in the retail segment. CPPE's Chief Executive Officer, Dr Muda Yusuf, emphasized that retail trading does not require scarce foreign expertise.
The CPPE's position is not directed against Chinese investment generally, as China remains one of Nigeria's leading trading partners. The organization called on the government to strengthen enforcement of immigration and investment regulations and investigate complaints from Nigerian traders over direct foreign competition at the retail level.
The CPPE also encouraged foreign businesses to invest upstream in manufacturing and other productive sectors instead of retail. This suggestion aims to promote fair competition and protect employment. The think tank's policy document highlighted the need for effective regulatory and immigration architecture to address the increasing presence of non-nationals in retail activities.
The Manufacturers Association of Nigeria and the Centre for the Promotion of Private Enterprise will continue to advocate for regulations that promote fair competition and protect local businesses. The government is expected to consider these calls and take necessary actions to address the concerns raised by both organizations.
Key points
- The Manufacturers Association of Nigeria has called for government regulation of foreign nationals in retail trade.
- The Centre for the Promotion of Private Enterprise noted that the distributive trade sector employs an estimated 27.5 per cent of Nigeria's workforce.
- The CPPE encouraged foreign businesses to invest upstream in manufacturing and other productive sectors instead of retail.
