Foreign operators put pressure on Nigerian traders – stakeholders

LAGOS, Nigeria — Nigerian traders and business operators say the growing presence of foreign nationals in sectors including trading, freight forwarding, construction, mining and agriculture is putting pressure on local businesses and employment.

Kanyi Daily reports that freight forwarders and other business stakeholders have called for tighter enforcement of rules governing foreign participation in local commerce, with freight forwarders estimating that foreign operators contribute to economic losses of more than ₦130 billion (about US$97.7 million) annually. The estimate is based on claims by industry participants and was not independently verified in the source report.

The stakeholders said some foreign operators have moved beyond manufacturing and wholesale activities into retail, competing directly with Nigerian traders. They also alleged that some operators use free trade zones to bring finished goods into Nigeria while avoiding duties, although the claims were presented by stakeholders rather than established by an independent investigation.

Trade expert and Managing Director of Mikky Excellency Nigeria Limited, Abdulazeez Mukaila, said the issue required stronger government oversight rather than opposition to foreign investment itself. “We are not afraid of competition. There is no freight forwarder in Nigeria that is afraid of competition because we travel globally and see how it operates.”

An importer, Emmanuel Amaife, said Nigeria needed foreign capital that created productive investment rather than direct competition with local retailers. He said some foreign operators were entering retail businesses traditionally dominated by Nigerians and called for amendments to laws governing areas of business activity reserved for citizens.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, said open-market retail should be reserved for Nigerian citizens. “Foreigners coming into our marketplaces, taking stores and competing with our retailers is unacceptable. That is unfair competition because our retailers and distributors are actually distributors to many of these Chinese manufacturers and in the value chain, there has to be division of labour.”

President of the Shippers Association of Lagos State (SALS), Nicodemus Odolo, said foreign operators were taking advantage of weaknesses in Nigeria’s laws and regulatory system. He argued that the government should identify areas where local participation should be protected and amend existing laws where loopholes allow foreign operators to enter restricted sectors.

The concerns have also surfaced among traders in Lagos, where business operators recently protested the activities of Chinese retailers at the Trade Fair market. The traders said direct sales by foreign wholesalers and retailers were disrupting established distribution networks and making it harder for local businesses to compete on price.

Stakeholders said the government could maintain foreign investment while establishing clearer boundaries between manufacturing, wholesale, distribution and retail activities. They also called for stronger enforcement of existing regulations covering free trade zones, freight forwarding and other sectors where they said foreign participation was affecting local businesses.