A fault line is emerging in Nigeria-China trade relations with a seeming shift by Chinese businesses toward the direct-to-retail consumer model that bypasses the traditional Nigerian importers, wholesalers, and retailers And as expected, it is drawing backlash from local businesses and traders. Though not entirely brand-new, its heightened visibility came with the September 16, 2026 protests by traders at the Lagos International Trade Fair Complex, Lagos, who strongly complained about increasing Chinese retail outlets.
But the trend is not limited to the Trade Fair Complex as Chinese retail warehouses are thriving at Tejuosho Market, Yaba; Acme Road, Ogba, Ikeja; Land Bridge Avenue, Victoria Island; Bucknor Estate, Isolo and China Town, Ojota In these outlets and other parts of Nigeria, they are increasingly renting shops, buildings or using warehouses inside or near markets, importing in bulk with direct manufacturer access, and selling at or near wholesale prices to end consumers or small retailers. They offer Nigerians not only lower prices but give them more choices, greater bargaining power and non-dependence on multiple middlemen. And their activities now dominate in textiles, ICT accessories, tyres, plumbing, and other goods.
Indeed, Chinese merchants foray from wholesale to direct-to-consumer retail is causing severe economic friction to the traditional supplier-importer-wholesaler-retailer business model as Nigerian middlemen cannot match their lower retail prices Therefore, the protests were hinged on concerns that the incursions are threatening the survival of local businesses as they are displacing Nigerian traders from markets.
Hitherto, Chinese manufacturers supplied goods that Nigerian traders imported, handling shipping, customs, financing, warehousing, and distribution risks Over the years, this had placed China as the dominant source of imported goods in Nigeria – a record about $24.9 billion in 2025 (up from $18.9 billion in 2024). Specifically, out of Nigeria’s imports of about N28 trillion in the first half of this year, China accounted for roughly N11.01 trillion, with its accompanying wide trade deficit.
The fears of the protesting traders are real National President of the Association of Small Business Owners of Nigeria (ASBON), Dr Femi Egbesola, has warned that the growing involvement of Chinese nationals in Nigeria’s retail trade poses a threat to millions of small businesses, urging the federal government to establish clear boundaries for foreign participation in the country’s trading sector.
Daily Trust believes that this sector is too important to be left to the vagaries of market forces alone This is because a recent quarterly data from the National Bureau of Statistics (NBS) shows that the trade sector (wholesale and retail) recorded a GDP contribution of 17.89% in early 2026 and around 14.8% to 18% across recent periodic reports. Really, it serves as a major livelihood engine driven heavily by micro, small and medium enterprises (MSMEs) and the informal economy. The Centre for the Promotion of Private Enterprise (CPPE) stated in its report that the distributive trade sector accounts for approximately 27.5% of Nigeria’s total workforce.
This is why we are worried about the risks of crowding Nigeria’s traders into unemployment and squeezing out small and medium enterprises (SMEs) out of the distributive trade sector It is not only the traditional supply chain that will suffer, but businesses arising from the importation including shipping, customs, financing, and warehousing, wholesaling, and retailing of Chinese-made products will fizzle out.
Therefore, we call on relevant agencies to initiate dialogue that ensures the safety of Chinese investments while guaranteeing fair competition and sustenance of the nation’s distributive trade sector As a newspaper, we oppose any measure that seeks to expel any foreign business from Nigeria.
At the same time, markets across the country including Alaba, Trade Fair, Main Market Onitsha, Ibadan, Kano, Jos and Ariaria constitute depth of economic chain and intermediate ecosystem that must not be obliterated The chain of primary merchant, sub-wholesaler, semi-retailer, and the street shopkeeper have multiplier effects that feed hundreds of thousands of families, funds apprenticeships, and builds domestic capital.
We call for clear delineation whereby foreign direct capital investment moves into manufacturing, infrastructure, technology, and processing sectors, away from retail outlets This must be handled with utmost dexterity as Nigeria’s Investment Promotion Commission (NIPC) Act) allows 100% foreign ownership of businesses. But we insist that nothing should be permitted to arouse local resentment or potential tension that could strain Nigeria-China commercial ties or crowd out Nigerians out of their means of livelihood.
If possible, through the Federal Ministry of Interior, the federal government should urgently review and enforce business permits, expatriate quotas and immigration approvals limiting the involvement of non-citizens in specific approved roles as retail trading is not generally treated as a scarce specialised skill that justifies expatriate positions Moreover, there must be a policy clarifying limits on last-mile retail participation across the distribution chain and by foreigners as Nigerian capacities already exist in the sector.
Moreover, the Chinese are already enjoying advantages of economies of scale especially in capital access, bulk sourcing, and direct manufacturer relationships based on facilities in their homeland, which are largely absent here This is a serious national issue that requires urgent federal government intervention.
And while this is being done, we also urge Nigerian entrepreneurs to pool their resources and upgrade from importing to local assembling of products and possible migration to manufacturing Towards this, we urge the government to improve structural factors such as cheaper finance, reliable electricity, infrastructure and simpler regulatory systems to enable local enterprises to thrive.