The Manufacturers Association of Nigeria (MAN) has called on the Federal Government to regulate the participation of foreign nationals in Nigeria’s retail sector amid concerns over the growing involvement of Chinese traders in last-mile retail.
MAN Director-General, Segun Ajayi-Kadir, made the call on Tuesday during a press briefing held ahead of the association’s 54th Annual General Meeting.
His comments followed recent protests by traders over the alleged involvement of Chinese manufacturers in retail activities at the Lagos Trade Fair Complex.
Ajayi-Kadir said some countries already have measures restricting the extent to which foreign companies can participate in certain sectors.
“I think some countries actually have a measure of the level of engagement for foreign companies. I think there was a decision on that, and I believe that the press can continue to interrogate because the issue of trade is very important. The issue of immigration is very important.
“The issue of why you have come into a foreign country, what you have come to do, is important. So, if you get into that space and you start to engage in other levels of activities, then it calls into question what the relevant regulatory agencies are doing,” the MAN DG said.
He said MAN supports the patronage of locally made products but expressed concern about foreigners entering areas traditionally occupied by Nigerian businesses without sufficient regulatory oversight.
“Of course, we support that our made-in-Nigeria products are treated and patronised, but the situation where foreigners are venturing into areas where they intrude as if the regulatory agencies are minding them. And if there are no extant laws to deal with that kind of thing, I think this is the time that should be considered,” Ajayi-Kadir said.
The Centre for the Promotion of Private Enterprise (CPPE) has also raised concerns about the increasing participation of foreign nationals, particularly Chinese traders, in Nigeria’s retail and distributive trade.
CPPE Chief Executive Officer, Muda Yusuf, said the development could affect employment, competition and the enforcement of immigration and business-permit regulations.
“Retail trading is generally not a specialised activity requiring scarce foreign expertise. The increasing presence of non-nationals in such activities therefore raises legitimate questions about the effectiveness of the regulatory and immigration architecture,” Yusuf said.
The CPPE said the distributive trade sector employs an estimated 27.5 percent of Nigeria’s workforce and urged the government to review the business permits and expatriate quotas issued to foreign nationals operating in retail.
However, the organisation clarified that its concerns were not directed at Chinese investment generally, noting that China remains one of Nigeria’s major trading partners.
It urged the government to strengthen enforcement of immigration and investment regulations, investigate complaints from Nigerian traders about direct foreign competition and encourage foreign businesses to focus more on manufacturing and other productive activities.
The debate comes amid complaints from Nigerian traders who say some foreign businesses are moving beyond wholesale activities and selling directly to consumers.
The government is therefore being urged to establish clearer rules on the areas in which foreign nationals can participate within Nigeria’s retail and distributive trade sectors.
