Dr. Ayokunle James Adeyemi is a supply chain expert, President of the Association of Supply Chain Professionals, Lagos Chapter, and the Co-founder of Solaire Logistic and Supply Chain Ltd. He has extensive experience in procurement, logistics, supply chain management, training and supply chain finance. In this exclusive interview, he examines the recent concerns surrounding Chinese manufacturers and Nigerian traders and explains what the situation means for Nigeria’s supply chain and local businesses.
What is your view on the current dispute between Nigerian traders and Chinese manufacturers at the Lagos Trade Fair Complex on Monday, September 14, 2026?
I think we need to look beyond the emotions and look at the supply chain guardrails.
From what has been reported, the major concern of the traders is that some Chinese manufacturers and wholesalers are now selling directly to final consumers. Traditionally, the supply chain would look something like this: Manufacturer to Wholesaler to Distributor to Retailer and to final Consumer.
But when the manufacturer or wholesaler comes directly to the consumer, some of the intermediaries are removed from the chain.
From a supply-chain perspective, this is called disintermediation. It is not necessarily a bad thing because removing unnecessary middlemen can reduce costs. But it can become a serious business problem when people who traditionally operate at different levels of the supply chain begin competing directly for the same customers.
That is where I believe the real conversation should begin.
Why can Chinese businesses sell at prices that Nigerian traders find difficult to compete with?
There are several possible reasons. First is economies of scale. A manufacturer buying or producing thousands of units can achieve a much lower unit cost.
Second is direct access to the manufacturer. A Nigerian retailer may buy from an importer or wholesaler who has already added transportation, financing, warehousing, duties, handling and profit margins.
Third is access to capital and supply-chain financing.
Fourth is logistics. China has developed a very strong manufacturing and export ecosystem where production, warehousing, transportation and distribution are highly coordinated.
So, when a Nigerian trader buys a product through four or five stages before it reaches the final customer, while another business is sourcing much closer to the factory, naturally, their cost structures can be very different.
Does this mean Chinese manufacturers are necessarily doing something wrong?
Not necessarily. We have to separate competition from unfair competition.
If a company is operating legally and complying with Nigeria’s laws, competition is part of business.
But if there are allegations that a business is operating outside the rules applicable to its category of trade, that is a matter for the appropriate regulatory authorities to investigate.
As supply-chain professionals, we should not approach this issue emotionally. We should ask: What is the actual supply-chain structure? What are the rules? Are all players complying with them? And are they competing under comparable conditions?
That is a much more constructive approach.
What is the danger of removing Nigerian wholesalers and retailers from the supply chain?
The concern is not just about traders making profits. There is an entire ecosystem around them.
A trader may employ salespeople, drivers, warehouse workers, accountants and other service providers. The trader also pays rent, transportation costs, taxes and various operational expenses.
If a large number of local businesses disappear, there can be consequences for employment and local economic activity.
However, I also want to make one important point: we cannot preserve a supply-chain structure simply because it has existed for many years.
Supply chains evolve.
If technology or direct sourcing allows a product to move from manufacturer to consumer more efficiently, businesses must adapt.
What should Nigerian traders be doing differently so we don’t get to see the recurring conflict again?
I would encourage them to move from simply being traders to becoming supply-chain entrepreneurs.
For example, instead of 20 traders importing the same product individually, they can form purchasing cooperatives and buy collectively.
They can also move into: private-label manufacturing; local assembly, product distribution, warehousing, e-commerce, B2B distribution, logistics, after-sales service and eventually manufacturing.
If Nigerian traders have spent decades travelling to China to source products, they already understand the market. The next question should be:
“How do we move from being customers of Chinese factories to becoming owners of production capacity ourselves?”
That is where the conversation should go.
What will you advise? Should Nigerian traders simply stop buying from China?
No. I don’t think that is a practical supply-chain solution. China is an important part of global manufacturing, and Nigerian businesses have developed significant commercial relationships with Chinese suppliers.
The issue is not whether we should trade with China.
The issue is how we can make the Nigerian side of the value chain stronger.
We can continue importing where necessary while simultaneously developing local manufacturing.
For me, the ultimate objective should be:
Import less where we can produce competitively, manufacture more locally, export more and create stronger Nigerian supply chains.
What role should the Nigerian government play?
Government has a very important role, but I don’t believe the solution should simply be to protect one group from another.
Government should create a level and predictable playing field.
That means enforcing applicable laws consistently, improving infrastructure, reducing unnecessary logistics costs, improving access to finance and supporting local manufacturers.
We also need policies that encourage businesses to move up the value chain.
For example, if a Nigerian trader has been importing automobile components for 20 years, why can’t we create an environment where that trader eventually establishes an assembly or manufacturing operation?
That is how we build an industrial supply chain.
Can this situation actually become an opportunity for Nigerian businesses?
Absolutely. Every disruption in a supply chain creates winners and losers, but it also creates opportunities for innovation.
Nigerian businesses should ask: “What can I do better?”
If another company has a lower price, I need to understand why.
Is it because of purchasing volume?
Is it because of financing?
Is it transportation?
Is it warehousing?
Is it product quality?
Is it technology?
Is it unnecessary middlemen?
Once you understand the cost structure, you can begin to compete intelligently.
The answer is not always to ask the competitor to leave. Sometimes the answer is to rebuild your own supply chain to become more competitive.
As a supply-chain professional, what would you recommend to Chinese manufacturers and Nigerian traders?
I would recommend collaboration rather than confrontation.
Chinese manufacturers need Nigerian distributors, market knowledge and local networks.
Nigerian traders need access to manufacturers, technology, capital and competitive sourcing.
There is therefore room for partnership.
For example, Chinese manufacturers can partner with Nigerian businesses for local distribution, assembly, warehousing and eventually local production.
Nigerian traders can organise themselves into stronger distribution networks rather than operating individually.
The objective should be to create a supply chain where both sides create value, rather than one side trying to eliminate the other.
Finally, what is your message to Nigerian businesses and policymakers?
My message is simple: Nigeria cannot build a strong economy by remaining at the end of the supply chain.
We must move from being predominantly consumers and importers to becoming producers, manufacturers, distributors and exporters.
The current situation should therefore make us ask a bigger question:
Why are Nigerian businesses still so dependent on foreign manufacturing for products that we have the potential to produce or assemble locally?
I don’t believe the long-term solution is simply Chinese versus Nigerian.
The real issue is: how do we build a Nigerian supply chain that is productive, competitive, technology-driven and globally connected?
If we can reduce production costs, improve infrastructure, provide affordable financing, strengthen logistics and encourage local manufacturing, Nigerian businesses will be in a much stronger position to compete.
My position as the President of Supply Chain Professionals is that we should move from confrontation to competitiveness; from importing finished products to creating value; and from being participants in global supply chains to becoming owners of stronger African supply chains.
That, in my view, is the bigger opportunity hidden behind this current controversy.
