The Centre for the Promotion of Private Enterprise (CPPE) has called on the Nigerian government to review the regulatory framework governing foreign participation in the country's retail and distributive trade sector, citing concerns over employment, fair competition, and the enforcement of immigration and business-permit regulations.
In a statement made available to Legit.ng on Saturday, September 20, CPPE Chief Executive Officer Dr Muda Yusuf highlighted the growing participation of foreign nationals, particularly Chinese traders, in Nigeria's retail trade. The group noted that the distributive trade sector employs an estimated 27.5% of the country's workforce and provides livelihoods for millions of Nigerians, especially those in micro, small, and medium-sized enterprises.
Concerns Across Multiple Retail Segments
CPPE said concerns have emerged across several segments, including textiles and fabrics, computers and telephone accessories, automobile spare parts, tyres, and plumbing materials. The organisation stressed that its concerns were not directed at Chinese investment or Nigeria's broader economic relationship with China.
"Foreign investment remains important to Nigeria's development, particularly where it brings capital, technology, industrial capacity, employment, exports and new capabilities into the economy," the group said. However, CPPE warned that problems could arise when foreign manufacturers or major suppliers move downstream into retail activities where Nigerian businesses already have substantial capacity.
Call for Review of Business Permits and Expatriate Quotas
The group 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. According to CPPE, expatriate quotas should primarily facilitate the entry of skills and expertise that are scarce or unavailable locally.
CPPE noted that retail trading is generally not a specialised activity requiring scarce foreign expertise, raising questions about the effectiveness of the current regulatory and immigration framework. The organisation 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 Needs Calibrated Investment Policy
The organisation said Nigeria 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 sectors such as manufacturing, infrastructure, technology, agro-processing, mining, and energy, where the country requires significant capital and technical capabilities.
However, CPPE said the retail segment 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 establish clearer rules for foreign participation across the distributive trade value chain.
CPPE also encouraged foreign businesses to invest more in manufacturing, processing, technology, and logistics rather than competing directly with indigenous businesses at the retail end. "The objective should not be protectionism for its own sake. It should be fair competition, regulatory integrity, employment protection and strategic investment policy," the organisation said.
In a related development, Legit.ng earlier reported that Nigeria exported far more to the rest of Africa than it imported in the second quarter of 2026, with exports reaching N6.65 trillion against imports of N1.10 trillion. The National Bureau of Statistics (NBS) Foreign Trade in Goods Statistics for Q2 2026 showed that total trade with African countries came to roughly N7.76 trillion during the period, with Togo receiving the largest share of Nigerian exports at about N1.50 trillion, followed by South Africa with N1.34 trillion and Côte d'Ivoire with N1.22 trillion.
