“I have been struggling with Chinese importers in the last four years

 

Monday Akunna, the Chief Executive Officer of Sibeaku International Limited A business Mogul, lamented the hurtful impact of the activities of Chinese businessmen in the commercial space of Nigerians.

Akunna made the submission recently in Lagos during a chat with newsmen.

The international businessman, who is also the Executive Chairman of Greenfield Estate CDA, Ago, Lagos, said Nigerian importers are contending with undue competition with foreign importers, especially Chinese.

He said, “I have been in business for 26 years and my experience in the Nigerian business operating environment, as far as importation is concerned, is that foreigners are taking undue advantage of government’s unfriendly policies. The Chinese are in large numbers in Nigeria. They come into the country under the guise of establishing manufacturing industries but they build structures they use as warehouses. They start importing goods and the Nigerian government gives them more incentives than it gives to us.”

Akunna, who decried the unequal playing ground existing between the Nigerian importer and Chinese importers, noted that while they get loans at 28 per cent, the Chinese importer gets loan from his home country at just 2 per cent.

 

Lamenting the recent increase of interest rate on loan to 35 per cent, the Sibeaku CEO, who deals on copper wire, LPG cooking gas accessories and refrigerants, stated that, “these Chinese borrow money from their country at 2 per cent interest rate because their government wants them to grow. Their government knows that when the citizens grow, the country grows. We can’t compete with them because they buy from the same companies we are buying from.

 

They are the manufacturers of the products and they are also the ones bringing them into the country.”

 

He further explained: “I have been struggling with Chinese importers in the last four years because a lot of them are into importation of LPG cooking gas. They import fake ones, lower grade ones and these are products we use in our homes and sometimes they explode and people die. Our government is not bothered about the situation. SON (Standards Organisation of Nigeria) will issue them certificate and number and whatever they are doing after that, they don’t know. There is no supervision of the activities of these Chinese. We allow them get away with a lot. They enjoy so many advantages over us.”

 

Akunna, who urged government to restrict foreign businessmen to establishment of manufacturing industries said, “in the next two years, I might not be able to continue in this LPG cooking gas business because the heat is too much. When you bring in a container worth N100 million with each 12.5kg cylinder coming at the landing cost of N25,000, the Chinese will be selling it at N19,000. So when you finish selling goods worth N100 million you can be getting between N80 million and N90 million.

 

“I have struggled to keep the business going but it’s not sustainable. Last month, I called my people for a meeting and told them that from now till October, all my containers bringing in LPG cylinders will arrive the country and I will no more place orders for LPG products because I cannot continue with the competition.”