Abia State Governor Alex Otti has urged Igbo traders and entrepreneurs to move beyond conventional retail trading and embrace manufacturing and digital commerce as competition from Chinese traders increases in Nigerian markets.
Otti made the call on Monday in Umuahia during the Igbo Day Lecture and Dinner organised by Ohanaeze Ndigbo Worldwide under the theme, “The Igbo Charter and Development of Ala Igbo.”
The governor said Abia and the wider Igbo business community, traditionally known for commercial activities, needed to deliberately shift towards manufacturing and technology-driven commerce.
He said the state was already moving in that direction by supporting manufacturing while promoting digital delivery as an alternative to dependence on physical shops and conventional markets.
Otti's comments came amid growing concerns among Nigerian traders about the increasing presence of Chinese nationals in retail businesses, particularly following protests by traders in Lagos over foreign participation in last-mile retail.
Rather than focusing solely on competition within traditional markets, the governor said Nigerian entrepreneurs should move up the value chain by producing goods themselves and using technology to reach customers.
He pointed to the global rise of platforms such as Alibaba as an example of how commerce is increasingly shifting from physical storefronts to digital platforms.
According to Otti, Abia's strategy is to combine manufacturing with trading while gradually transitioning from conventional commerce to digital trading.
He said the approach would allow entrepreneurs in the state to access customers beyond their immediate physical markets and compete in a wider global marketplace.
The governor also said his administration was investing in digital skills for young people through initiatives such as TechRise.
He noted that some Abians trained through the programme were already working for global technology companies while operating from Aba, highlighting what he described as the potential of digital skills to create opportunities beyond traditional local markets.
Otti's position comes against the backdrop of a broader debate over the growing participation of Chinese businesses in Nigeria's retail sector.
Local traders have argued that foreign retailers benefit from direct access to manufacturers and lower-cost supply chains, giving them an advantage over Nigerian businesses that traditionally purchase imported goods through intermediaries.
Business groups and economists have offered different views on how Nigeria should respond to the development, with some calling for clearer boundaries for foreign participation in last-mile retail while others have stressed that local businesses must improve productivity and competitiveness.
The President of the Association of Small Business Owners of Nigeria, Femi Egbesola, previously called for restrictions on foreign participation in last-mile retail, arguing that small Nigerian businesses require protection from unfair competition.
However, Nigeria-China Investment Club President Chidi Uleli argued that the presence of Chinese businesses should encourage Nigerian traders to integrate more deeply into manufacturing and establish cottage industries rather than attempting to drive foreign competitors out of the market.
Lagos Business School academic Uchenna Uzo similarly said foreign competition should not automatically be treated as a threat, arguing that a stronger economy should allow local and international businesses to compete under clear rules.
Uzo also identified the absence of a national retail policy framework as an important issue, saying clearer rules could help define the roles of manufacturers, wholesalers and retailers and reduce conflicts within the market.
Another Lagos Business School academic, Franklin Ngwu, said the deeper challenge facing Nigerian traders and manufacturers was the country's business environment, including high financing costs, inadequate electricity, regulatory difficulties, poor infrastructure and supply-chain constraints.
These challenges make it more expensive for Nigerian businesses to manufacture locally, while international competitors may have access to cheaper financing, larger production systems and more established supply chains.
Otti's proposed shift therefore places manufacturing and digital commerce at the centre of Abia's response, rather than relying exclusively on conventional market structures.
The governor said the transformation would begin in Abia, where Aba has long served as one of the state's major commercial and manufacturing centres.
He also linked the strategy to the wider development of Ala Igbo, saying the theme of the Igbo Day celebration, “Njikọ Ka,” meaning “Unity is Supreme,” reflected the importance of unity in achieving regional development.
The governor assured the President-General of Ohanaeze Ndigbo Worldwide of his administration's support and said Abia had laid a foundation for continued development.
For traders and entrepreneurs, the debate now extends beyond competition in physical markets to questions of production, technology, access to finance and the ability to reach customers through digital platforms.
Otti's message is that moving into manufacturing and digital commerce could provide a different route for Nigerian businesses seeking to compete in an increasingly globalised marketplace.