Abuja:The Sea Empowerment and Research Centre (SEREC) has urged Nigeria to enhance its domestic production and competitiveness to tackle the increasing foreign competition affecting the country’s trading and distribution markets.
According to News Agency of Nigeria, SEREC highlighted these concerns in its policy bulletin titled ‘From Import Dependence to Production Power.’ The bulletin was shared with newsmen in Abuja by Mr. Eugene Nweke, SEREC’s Head of Research. Nweke referenced a September 15 protest by traders at the Lagos International Trade Fair Complex, which was reportedly fueled by the rising presence of Chinese businesses in direct retail and domestic distribution.
Nweke emphasized that the situation signals significant shifts in international commerce, competition, and global supply-chain dynamics impacting Nigerian businesses. He noted that traditional business models, where foreign manufacturers produce goods and Nigerian importers distribute them, are increasingly challenged by integrated global supply chains, allowing direct participation of international businesses in multiple stages of production and retail.
He pointed out that this development is part of a broader transformation brought about by globalization, e-commerce, and advanced supply-chain management, and is not limited to Chinese businesses. Nweke posed a critical question regarding why local businesses remain focused on the trading and distribution ends of value chains, given Nigeria’s market potential, resources, and regional access.
Nweke called for Nigeria to shift from an economy largely reliant on imports to one driven by manufacturing, value addition, and exports. He acknowledged that Nigerian consumers often choose imported products due to their affordability and availability compared to local alternatives.
He identified various factors affecting domestic competitiveness, including energy, finance, infrastructure, and customs processes, and urged the government to enforce regulations while allowing for competitive enterprise growth. He also encouraged importers to move up the value chain by engaging in local assembly, packaging, and branding, leveraging their market knowledge to foster industrialization and export-oriented enterprises.
Nweke concluded by emphasizing the necessity of foreign capital and partnerships that contribute to Nigeria’s productive value through employment and technology transfer, advocating for a focus on competitiveness rather than a dichotomy between foreign and local businesses.