Monday Akunna, CEO of Sibeaku International Limited and Executive Chairman of Greenfield Estate CDA, Ago, Lagos, has spoken out about the devastating impact of Chinese businessmen on Nigerian commercial activities. With 26 years of experience in the Nigerian business environment, Akunna expressed his concerns about the unfair competition faced by Nigerian importers, particularly against Chinese importers. According to Akunna, the Nigerian government’s policies have created an uneven playing field, favouring foreign importers over local ones. Chinese importers, in particular, have flooded the market, taking advantage of government incentives and low-interest loans from their home country.
This has made it difficult for Nigerian importers to compete, as they face higher interest rates on loans and limited access to capital. Akunna’s company, Sibeaku International Limited, deals in copper wire, LPG cooking gas accessories, and refrigerants. However, he has struggled to keep up with the competition from Chinese importers, who import lower-grade and fake products, putting consumers’ lives at risk. Despite this, the government has failed to take adequate measures to regulate the activities of these foreign importers.
Lower prices from the Chinese affect Akunna’s company.
The Standards Organisation of Nigeria (SON) issues certificates and numbers to these importers, but there is little supervision of their activities. As a result, they enjoy significant advantages over Nigerian importers, who are struggling to survive. Akunna urged the government to restrict foreign businessmen to establishing Manufacturing industries, rather than allowing them to dominate the importation market. The situation has become unsustainable for Akunna’s business, and he has been forced to consider exiting the LPG cooking gas market.
With the Chinese selling products at significantly lower prices, Akunna’s company faces significant losses. He has already informed his team that he will no longer place orders for LPG products after October, as the competition has become too intense. Akunna’s story highlights the challenges faced by Nigerian importers in the current business environment. The government’s policies and lack of Regulation have created an uneven playing field, favouring foreign importers over local ones. If this situation continues, it could lead to the demise of many Nigerian businesses, resulting in job losses and economic instability. There is an urgent need for the government to address these issues and create a more level playing field for Nigerian importers to compete fairly.
Ways the government can address these issues.
Furthermore, Akunna emphasized that the Chinese importers are not just competing with Nigerian businesses but also engaging in unethical practices. They import fake and substandard products, which pose a significant risk to consumers. The government’s failure to regulate their activities has made it difficult for Nigerian importers to compete, as they are forced to contend with unfair competition. Also, Akunna pointed out that the government’s policies are not only hurting Nigerian importers but also affecting the economy. The influx of foreign imports has led to a significant increase in the country’s Trade deficit, which has put pressure on the naira. This has resulted in high Inflation rates, making it difficult for Nigerians to afford basic necessities.
To address these issues, Akunna suggested that the government should implement policies that promote local industries and restrict foreign importers to establishing manufacturing industries. This would create jobs and stimulate economic growth. He also urged the government to increase support for Nigerian importers, such as providing access to low-interest loans and reducing the cost of doing business. The government should also implement policies that promote local industries, restrict foreign importers to establishing manufacturing industries, and provide support for Nigerian importers. Failure to do so would result in the demise of many Nigerian businesses, leading to job losses and economic instability.
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In all, his story highlights the challenges faced by Nigerian importers in the current business environment. The government’s policies and lack of regulation have created an uneven playing field, favouring foreign importers over local ones. There is an urgent need for the government to address these issues and create a more level playing field for Nigerian importers to compete fairly. This would promote local industries, create jobs, and stimulate economic growth. In the long term, the government must develop policies that promote Economic Diversification and reduce the country’s reliance on imports.