CPPE Calls for Review of Foreign Traders’ Permits in Nigeria
- CPPE has raised concerns about Chinese traders operating in Nigeria's retail and distributive trade sector, which employs 27.5% of the workforce
- The private sector group urged the government to review business permits, expatriate quotas, and immigration approvals for foreign nationals in trade
- CPPE said foreign investment should be directed at manufacturing and infrastructure rather than competing with Nigerian retailers
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
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.
In a statement made available to Legit.ng on Saturday, September 20, CPPE Chief Executive Officer Dr Muda Yusuf said the trend could raise concerns about employment, fair competition, investment policy and the enforcement of Nigeria’s immigration and business-permit regulations.
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The private sector advocacy group said Nigeria’s distributive trade sector employs an estimated 27.5% of the country’s workforce and provides livelihoods for millions of Nigerians, particularly micro, small and medium-sized enterprises.
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.
The group 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."
However, CPPE said problems could arise when foreign manufacturers or major suppliers move downstream into retail activities where Nigerian businesses already have substantial capacity.
CPPE calls for review of foreign business permits
The group 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.
According to CPPE, expatriate quotas should primarily facilitate the entry of skills and expertise that are scarce or unavailable locally.
It said retail trading is generally not a specialised activity requiring scarce foreign expertise, raising questions about the effectiveness of the current regulatory and immigration framework.
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.
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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, it said the retail segment requires a different policy approach because of its importance to employment, entrepreneurship and SME development.
CPPE 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.
The organisation also encouraged foreign businesses to invest more in manufacturing, processing, technology and logistics rather than competing directly with indigenous businesses at the retail end.
CPPE said Nigeria needs foreign investment while also protecting the entrepreneurial space that supports millions of domestic businesses and livelihoods.
the organisation said:
“The objective should not be protectionism for its own sake. It should be fair competition, regulatory integrity, employment protection and strategic investment policy.”
Togo, South Africa lead Nigeria’s African export destinations
Earlier, Legit.ng reported that 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.
The 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.
Togo received 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.
Source: Legit.ng
