The Lagos International Trade Fair Complex Management Board (LITFCMB) has begun moves to resolve the dispute between Nigerian traders and Chinese business operators following a recent protest over alleged competition from Chinese retailers.

The Executive Director/Chief Executive Officer of the board, Veronica Ndanusa, said the grievances raised by some traders centred mainly on allegations that Chinese operators were selling goods directly to consumers at prices lower than those offered by Nigerian retailers.

Speaking at a stakeholders’ meeting on the issue, Ndanusa said some traders complained that they incurred additional costs importing goods from China, including transportation and other expenses, while Chinese operators allegedly sold similar products locally at lower prices.

According to her, some traders claimed that products they sold for about N20,000 were being sold by Chinese operators for N10,000, making it difficult for them to compete.

She, however, condemned the manner in which the grievances were expressed, particularly the use of placards calling for Chinese nationals to leave the market.

“They went about it the very wrong way. They carried placards that Chinese must go. And you know, this is a nation that welcomes visitors. This is a nation that encourages foreign investment. So we had to quickly step in to see that every grievance is addressed, every both sides,” she said.

Ndanusa said the board had begun a process of dialogue to address the concerns of both Nigerian traders and foreign investors.

She added that the meeting had already achieved more than 60 per cent of what was required to find a permanent solution to the dispute.

She stressed that both Nigerian and foreign traders must operate within the law, particularly on fair trade and competition.

“The next one is going to be a roundtable. Then we are going to have commitment from both sides to adhere to whatever agreement we arrive at based on the laws of the Federal Republic of Nigeria. The laws that protect both the locals and the law that protects the foreign investment,” Ndanusa said.

“So, both sides must operate within the laws, especially of competitiveness, fair trade, and competitiveness,” she said.

Ndanusa also linked the resolution of the dispute to the broader interests of the Federal Government, saying the complex’s status as an international trading centre meant that events there could affect Nigeria’s trading image.
She said the board was therefore committed to preventing a recurrence of the incident.

“This complex, like it’s noted, is an international complex. So, we must not do anything that will bring down the image of the nation. For whatever happens here will affect the trading image of the nation,” Ndanusa said.

President of the Association of Progressive Traders and Chairman of Stakeholders, Trade Fair Complex, Chief Eric Ilechukwu said the dispute arose from concerns over Chinese operators allegedly combining manufacturing, supply and retail activities.

He said such practices could make it difficult for Nigerian retailers to compete, but added that the issue should have been handled through dialogue.

A representative of the Chinese business community, who is also the Chief Executive Officer (CEO) and Managing Director of Evaxin International Company Limited, Li Guilin, stating that she had operated an auto spare parts business at the Trade Fair Complex for 17 years, adding that Chinese businesses had grown alongside Nigerian traders at the complex.

She said her company operated mainly as a dealer and supplier of auto spare parts and did not engage in retail sales.
Guilin however, promised that Chinese business operators found engaging in prohibited retail activities would be reported and addressed.

“I promise you, from today, from every local association, you can take the documents or report of any Chinese doing retail business and report to Chinese Embassy and General Office,” she said.

She urged Nigerian traders to give Chinese businesses an opportunity to correct any practices that violated agreed trading arrangements.

She also rejected calls for Chinese businesses to leave the Trade Fair Complex, saying, “We must keep talking about international Trade Fair. We’re not going to go, we are staying here 100 years, 200 years.”

The Lagos State Police Command also warned traders against resorting to protests or other actions capable of disrupting peace at the complex, adding that disagreements among businesses should be resolved through established channels.

The Department of State Services also urged traders to report emerging disputes before they escalate, adding that there was no plan to drive Chinese businesses out of the country, stressing that foreign partnerships remained
important to economic development.

DSS assured stakeholders that they were monitoring the situation and would provide advice and intervention where necessary.