Leaders from the Organised Private Sector (OPS) and trade groups have called on the Federal Government. They want foreign nationals prohibited from directly engaging in last-mile retail operations. The move follows protests by local merchants at the Lagos Trade Fair Complex. Business associations are urging policymakers to safeguard micro and small domestic enterprises.
Nigeria has restricted foreign participation in retail for decades. The Nigerian Enterprises Promotion Act of 1972 reserved certain businesses for citizens. The current framework is in the Immigration Act and the Expatriate Quota Handbook. Enforcement is weak. In 2019, the government shut down some foreign-owned retail shops in Abuja. In 2021, similar closures occurred in Lagos. Igbo traders recently protested against Chinese nationals selling directly to consumers. The pattern repeats.
The OPS call is coordinated. It follows protests at the Lagos Trade Fair Complex. Local merchants say foreign nationals are undercutting them. They sell cheap imported goods directly to consumers. They bypass the distribution chain. Nigerian traders lose margin and market share.
The economic argument is protectionist. Retail is low-margin and labour-intensive. It employs millions. Foreign competition squeezes local traders. The OPS wants the government to enforce existing laws. It wants expatriate quotas reviewed. It wants clearer rules on reserved businesses.
The counter-argument is openness. Foreign investment brings capital, technology and competition. Consumers benefit from lower prices. Blanket bans could violate ECOWAS and WTO commitments. Nigeria is a signatory to both. The OPS is not calling for a blanket ban. It wants enforcement of existing rules. That distinction matters.
The government faces a choice. It can protect local traders. It can attract foreign investment. It cannot do both easily. Enforcement is the middle path. It requires resources and political will.
Winners: Local traders, if enforcement improves. The OPS, which shapes policy. Labour unions, which support protectionism. Losers: Foreign retailers, who face scrutiny. Consumers, if prices rise. The economy, if protectionism reduces competition. Investors, who see uncertain rules.
Bottom Line: The OPS wants foreigners out of retail. The law already reserves it for Nigerians. Enforcement is the problem. The government must act. Protecting small traders is legitimate. Blanket bans are not. Enforcement, not exclusion, is the answer.