Senate moves to Investigate dominance of Indigenous Retail businesses by foreigners

Senate

By: Ignatius Okorocha

The Senate on Wednesday at plenary mandated its committee on Trade and Investment  to investigate the seemingly domination of the nation’s indigenous  retail businesses by foreign businessmen.

This is as the Upper chamber has resolved to review the indigenization Act and other extant policy and legal framework with a view to providing incentives/ protection to indigenous retail business investors in the country’s organized sector.

These resolutions of the Senate followed a motion by Senator Ifeanyi Ubah( YPP, Anambra South) on the,”urgent need to investigate the economic and security implication of an unregulated Nigerian retail sector and consider appropriate legislative  measures to incentivize and protect indigenous retail traders.”

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The  Red chamber also called on governments at all levels to put in place acceptable measures to protect traditional or open markets retailers to avoid contravention of environmental  and health safety standards, promote revenue collection and prevent harassment constant disruption of retail trade activities by government revenue collectors or environmental and health enforcement officers.

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It further mandated its committee on Trade and Investment to engage Ministry of Trade and investment and other relevant stakeholder with a view to receive briefing on the extant policy and legal framework on retail trade in Nigeria and the protection offered to indigenous retail investors and report back within two week.

Senate also asked the committee to engage local retailers on ways to  further  protect their interests as well as invite foreign retailers to ascertain their legal status.

Ubah in his lead debate noted that Nigerian retail sector remains unregulated with dire economic and security implications.

He said the Chinese,Indians and Lebanese companies have taken over the retail business from indigenous retailers in markets like Balogun,Trade Fair,ASPAMDA,Alaba, Coker, Computer Village,Dei -Dei market among others .

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He said the foreign investors have shifted from production and wholesaling to retailing.

He observed  that since Independence, Nigerian retail business had  been  offering  employment to Nigerians and providing  revenue to government via taxes.

 He said many African countries  including ECOWAS member states, such as Ghana have policy and legislative measures in place to offer minimum protection to indigenous retail traders .

He, however, said in Nigeria, extant policies and legal frameworks at both national and sub-regional levels do not offer any minimum protection to indigenous retail business operators.

He said the implication was that the organised retail business in Nigeria made up of multiple branch supermarkets,shopping malls was  dominated by foreigners through their popular retail outlets.

He expressed concern that  if measures were not taken via enactment of extant protective  laws and policies, foreigners may continue to dominate the sector.

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 Senate is its further resolutions on the motion  called on governments at all levels to put in place acceptable measures to protect traditional or open market retailers to avoid contravention of environmental and health  safety standards.

Seconding the motion, Sen. Francis Fadahunsi(Osun East) while congratulating the sponsor of the motion, frowned at the domination of the nation’s retail markets by foreign investors saying that government has to take steps to check such anomaly.

Fielding questions from journalists on why most of his motions hinge on the economy, Sen. Ubah said that coming from the business sector, he has to protect the interest of investors in the nation’s trade and industry.

This he said is in addition to working for the welfare of his constituents  on his mandate he is in the upper chamber.

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