The Centre for the Promotion of Private Enterprise (CPPE) has expressed deep concern over the growing influx of foreign nationals, particularly Chinese traders, into Nigeria’s retail and distributive trade sector, warning that the trend threatens the livelihoods of millions and undermines local enterprise.
In a policy brief released on Sunday, September 20, 2026, in Lagos, the economic advocacy group cautioned that unchecked direct foreign competition in basic commerce poses a direct threat to the country’s distributive trade sector, which currently employs an estimated 27.5 percent of Nigeria’s workforce.
Speaking on behalf of the organisation, the Chief Executive Officer of the CPPE, Dr. Muda Yusuf, stated that while foreign direct investment remains vital to the national economy, foreign manufacturers and major suppliers are increasingly moving downstream into retail segments traditionally managed by indigenous micro, small, and medium enterprises (MSMEs).
“A situation where overseas manufacturers or major suppliers sell products to Nigerian importers and distributors, and subsequently establish operations that compete directly with those same businesses at the retail end of the market, creates legitimate concerns about market structure and fair competition,” Dr. Yusuf noted.
The policy brief highlighted key commercial hubs experiencing increased foreign footprint, including trade in Textiles and fabrics, Computer and mobile phone accessories, Automobile spare parts and tyres (recently triggering protests at the Lagos International Trade Fair Complex), also visibly in the Electrical and plumbing materials and General household goods.
According to the think tank, domestic retailers are already squeezed by weak consumer purchasing power, high financing costs, and broader macroeconomic pressures, making direct competition with foreign capital suppliers unsustainable.
The CPPE clarified that its stance is not rooted in xenophobia or protectionism for its own sake, nor is it aimed at severing Nigeria’s strategic trade relations with China or other international partners. Instead, the group emphasized the need for regulatory enforcement, immigration oversight, and calibrated investment policies.
The CPPE called on the Federal Government and relevant regulatory agencies to take immediate action, and urged immigration and trade authorities to audit quotas and business permits, ensuring foreign entries are restricted to areas requiring specialised skills absent in the local labor market.
They encourage international investors to direct capital into productive sectors such as manufacturing, agro-processing, technology, mining, energy, and infrastructure rather than basic retail. The CPPE calls for Strengthen alignment between the Nigerian Immigration Service, the Federal Ministry of Industry, Trade and Investment, the Nigerian Investment Promotion Commission (NIPC), and labor authorities to define permissible foreign participation across value chains.
They ask Federal Government to establish clear grievance channels to investigate formal complaints raised by indigenous trading associations regarding unfair market practices. Dr. Yusuf concluded that retail trading does not require foreign technical expertise, emphasising that Nigeria must safeguard the entrepreneurial space that sustains millions of domestic livelihoods while remaining open to productive industrial investments.
