Nigeria needs urgent policy action over the growing role of Chinese and other foreign traders in its retail and distribution markets, economist and financial analyst Dr Muda Yusuf said on Sunday.
Quick facts
- Nigerian traders have protested the involvement of Chinese businesses in the retail market.
- The issue has generated mixed reactions over the past week.
- Key concerns include jobs, competition, investment rules, immigration controls and business permits.
- Foreign investment should be prioritised in capital- and skills-intensive sectors such as manufacturing, energy and technology.
The comments followed protests by Nigerian traders against Chinese participation in domestic retail. The dispute has prompted varied responses over the past week.
Yusuf said the development raised broader questions about protecting employment, ensuring fair competition and shaping investment policy. He also pointed to the need to safeguard the credibility of Nigeria’s immigration system and business-permit arrangements.
Nigeria should continue to welcome overseas capital, he said, but an open investment regime must operate within clearly defined strategic limits. He therefore urged a thorough reassessment of the rules governing foreign involvement in the country’s retail economy.
Investment policy, Yusuf said, should separate businesses that bring new capital, technology, expertise, productive capacity and export potential from activities in which unrestricted foreign entry could displace Nigerian companies and workers without a clear economic gain.
He said foreign investors should receive particular encouragement in manufacturing, infrastructure, technology, agro-processing, mining, energy and other fields where Nigeria faces significant funding and technical-capability gaps.
