CPPE Warns Foreign Traders Could Displace Nigerian SMEs and Jobs

The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over the growing participation of foreign nationals, particularly Chinese traders, in Nigeria's retail and distributive trade sector, warning it could hurt jobs and fair competition.

In a statement made available on Saturday, September 20, CPPE Chief Executive Officer Dr Muda Yusuf said the trend raises questions about employment, fair competition, investment policy and the enforcement of Nigeria's immigration and business-permit regulations.

Why the sector matters

CPPE said the distributive trade sector employs an estimated 27.5% of the country's workforce and provides livelihoods for millions of Nigerians, especially micro, small and medium-sized enterprises.

Concerns have emerged across several segments, including textiles and fabrics, computers and telephone accessories, automobile spare parts, tyres and plumbing materials.

The group stressed that its concerns were not directed at Chinese investment or Nigeria's broader economic relationship with China. It said: "Foreign investment remains important to Nigeria's development, particularly where it brings capital, technology, industrial capacity, employment, exports and new capabilities into the economy."

Manufacturers moving into retail

CPPE said problems arise when foreign manufacturers or major suppliers move downstream into retail activities where Nigerian businesses already have substantial capacity. It called for a comprehensive review of the regulatory framework governing foreign participation in Nigeria's retail economy.

It urged relevant government agencies to examine the enforcement of business permits, expatriate quotas, immigration approvals and other authorisations granted to foreign nationals operating in the country. Expatriate quotas, it said, should primarily facilitate the entry of skills and expertise that are scarce or unavailable locally. Retail trading is generally not a specialised activity requiring scarce foreign expertise, it added.

CPPE said it was not advocating arbitrary restrictions or hostility towards foreign investors, but called for consistent enforcement of existing laws and transparent investment rules. Nigeria, it said, should remain open to foreign investment while establishing strategic boundaries around activities where unrestricted foreign participation could displace domestic enterprises and jobs.

It encouraged foreign investment in manufacturing, infrastructure, technology, agro-processing, mining and energy, where the country needs significant capital and technical capabilities. Retail, however, requires a different policy approach because of its importance to employment, entrepreneurship and SME development.

The group urged the government to investigate complaints from Nigerian traders about direct foreign competition, strengthen coordination among immigration, investment, trade and labour authorities, and set clearer rules for foreign participation across the distributive trade value chain.

CPPE said: "The objective should not be protectionism for its own sake. It should be fair competition, regulatory integrity, employment protection and strategic investment policy."

Trade with Africa

Nigeria sold far more to the rest of Africa than it bought from the continent in the second quarter of 2026, with exports reaching N6.65 trillion against imports of N1.10 trillion, according to the NBS Foreign Trade in Goods Statistics for Q2 2026. Total trade with African countries came to roughly N7.76 trillion during the period. Togo received the largest share of Nigerian exports at about N1.50 trillion, followed by South Africa with N1.34 trillion and Cote d'Ivoire with N1.22 trillion.