Organised private sector leaders and economists in Nigeria have urged the Federal Government to bar foreign nationals from last-mile retail trading. They expressed concerns that the growing presence of Chinese traders in Nigerian markets could have a devastating impact on small businesses. The call for a ban follows a protest by local traders at the Lagos Trade Fair Complex against the alleged involvement of Chinese nationals in retail trading.
According to Dr Femi Egbesola, President of the Association of Small Business Owners of Nigeria, the country must not sacrifice its small businesses on the altar of trade liberalisation. He argued that the government has a duty to protect small businesses and called for a limit to the participation of foreigners in the marketplace. Egbesola stated that foreign nationals, including Chinese traders, should not be part of retail trading to the last mile.
Egbesola accused many foreign traders of skipping the legal and regulatory steps required before opening shops in the country. He warned that government inaction would kill off businesses in the affected clusters, noting that small firms generate 50 per cent of the Gross Domestic Product and remain the country’s biggest job creators. The ASBON leader called for clear rules stating the line and boundaries between what foreigners can do and what Nigerians should do for themselves.
Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, also argued that Nigeria does not lack capacity in retail and should reserve the space for its own citizens. He stated that foreign investors should fill gaps that Nigerians do not have much capacity to fill, and that retail trading should be left for Nigerians and possibly people from African countries.
Yusuf likened the practice of Chinese traders engaging in retail trading to a major manufacturer opening stalls beside its own distributors. He argued that it is not fair and that the government should not allow it. The CPPE chief called for deliberate protection for retailers, describing trading as the largest employer of labour after agriculture.
The Nigeria-China retail trade debate has sparked a lively discussion on social media, with users noting a lack of innovation in the local trading model and others calling it an inevitable development with the advent of e-commerce platforms like Temu and Sinomart. However, business leaders see a deeper implication and are calling for government action to protect small businesses.
The President of the Nigeria-China Investment Club, Dr Chidi Uleli, offered a different perspective, explaining that trade globalisation is the key factor behind the growing presence of Chinese retailers in Nigerian markets. He suggested that Nigerian traders should integrate into the value chain and set up cottage industries, warning that any retaliatory move against Chinese nationals would be untenable.
Key points
- Nigerian business leaders are calling for a ban on foreign nationals from last-mile retail trading.
- The growing presence of Chinese traders in Nigerian markets has sparked concerns about the impact on small businesses.
- Business leaders argue that the government has a duty to protect small businesses and should reserve retail trading for Nigerians.
