Nigeria retail sector faces rising foreign competition, CPPE warns

The Centre for the Promotion of Private Enterprise (CPPE) has expressed concern regarding the increasing involvement of foreign nationals, specifically Chinese traders, in Nigeria’s retail and distributive trade sectors.

CPPE CEO Dr. Muda Yusuf noted that this trend poses risks to employment and fair competition. The distributive trade sector is a vital economic pillar, employing approximately 27.5 percent of the Nigerian workforce and supporting millions of livelihoods in areas such as textiles, ICT products, automobile spare parts, and household goods.

The group clarified that its concerns are not directed at China’s role as a major trading partner or the supply of industrial inputs, but rather at foreign entities that establish operations competing directly with the local importers and distributors they previously supplied. This shift is seen as a threat to micro, small, and medium enterprises already facing high operating costs and weak consumer demand.