By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Independent News ExpressIndependent News Express
  • Home
  • International
    InternationalShow More
    United Nations
    4th International Conference On Financing For Development Delivers Renewed Hope And Action For Sustainable Development
    3 weeks ago
    The African Development Bank and the United Nations Human Settlements Programme (UN-Habitat) scale up drive for sustainable urbanization in Africa
    AfDB, UN-Habitat Scale Up Drive For Sustainable Urbanisation In Africa
    3 weeks ago
    UN
    North Africa: Green Climate Fund Approves Record $300m For FAO-designed Projects In Papua New Guinea, Saint Lucia, The Sahel
    3 weeks ago
    UNICEF
    How Wars Across Middle East, North Africa Affecting Children – UNICEF
    4 weeks ago
    UNDP
    UN Development Programme Welcomes Historic Deal On Sustainable Development Even Amidst Global Turmoil
    4 weeks ago
  • Africa
    Africa
    Show More
    Top News
    UN Women Kenya Trains Motorcycle Taxi Operators
    3 years ago
    Nigeria To Host Sahel Climate Fund Secretariat
    2 years ago
    Dangote Recounts Investors’ Bad Experience With AU Passports In Some African Nations
    2 years ago
    Latest News
    At Gender Statistics Forum, African Leaders Urge Renewed Commitment To Quality Gender Data
    3 weeks ago
    Ooni’s Wife, Olori Temitope Enitan-Ogunwusi Takes Ile Ife Royalty To ADWIN Launch In Cote d’Ivoire
    1 month ago
    Independent UN Body Finds Systemic Racism Against Africans And People Of African Descent
    2 months ago
    Public Exit: Why South Africa Businesses Are Moving To Private Cloud
    2 months ago
  • Corporate News
    • Media Outreach
  • Politics
    Politics
    Show More
    Top News
    Impunity, Insecurity Threaten Nigeria’s General Elections
    2 years ago
    Warri South Leaders Seek Review Of Delta South Senatorial Election Result
    2 years ago
    Obasa Returns As Speaker, Lagos House Of Assembly
    2 years ago
    Latest News
    Gov Adeleke’s Outburst Against Aregbesola Shows Sign Of A Drowning Man – ADC Group
    7 days ago
    Youth Party Releases Primary Election Guidelines Ahead of August 16 Bye-Elections
    2 weeks ago
    Youth Party Appreciate Voters, Rejects Lagos Council Polls, Alleges Widespread Rigging
    2 weeks ago
    Lagos LG Poll: APC’s Osagie Daniel Coasting Home To Victory In Amuwo Odofin’s Ward K
    2 weeks ago
  • News
    • Agriculture
    • Breaking News
    • Tech
    • Maritime
    • Crime
    • Art & Culture
    News
    Show More
    Top News
    Ondo Governor, Akeredolu Begins Construction Of First Flyover In Akure
    2 years ago
    Celebration Of Life: Reverend Adewumi Jegede Of Later House Of God Assembly Buried Amid Pomp
    1 year ago
    Pa Abdulfatah Amoo Ayanwale
    Pa Ayanwale Dies At 76, Fidau Prayers Holds 8 August
    2 years ago
    Latest News
    Retrospect: A Historic Inaugural Meeting of Apapa-Iganmu LCDA
    8 hours ago
    BREAKING: EFCC Arrests Abdullahi Bashir Haske Over Alleged Money Laundering and Corruption
    2 days ago
    X3M Ideas, SO&U, Noah’s Ark, Others Shine At AAAN Gala Night
    5 days ago
    CAPPA Condemns UI’s Suspension Of Student Activists, Urges Reinstatement
    1 week ago
  • Entertainment
    • Comedy
    • Movies
    • Music
    • Television
    • Concert & Events
    Entertainment
    Show More
    Top News
    Whiskey: Burna Boy’s Story On Pollution, Flood And Negligence
    3 years ago
    XPression With CDO Train To Hit Nigerian Campuses Soon
    2 years ago
    Asake Out With 14-track ‘Work of Art’ Album
    2 years ago
    Latest News
    Unlock More for Less as Big Brother Naija Season 10 Beckons
    5 days ago
    Purp vs Raymu: Who Will Be Crowned The Next Nigerian Idol?
    3 weeks ago
    Local Content Powers African Dreams
    3 weeks ago
    The Drama Returns As BBNaija ‘No Loose Guard’ Reunion Premieres June 23
    1 month ago
  • Lifestyle
    • Fashion
    • Love & Life
    • Food & Drink
    • Travel & Tourism
    • Relationship
    • Sex
    Lifestyle
    Show More
    Top News
    Lagos To Celebrate Annual Yoruba Culture Last Week Of September
    1 year ago
    Glame Attires Steals The Show At Warri Fashion Lifestyle Festival
    2 years ago
    2nd International Conference for Event Ushers Holds In Ibadan
    5 months ago
    Latest News
    Noble Call to Service: Inside the Induction of 104 New Knights of St. Mulumba
    1 month ago
    Joining The Knighthood Brings You Closer To God -Sir Eva Njemanze
    1 month ago
    Africa Tech Festival Unveils Strategic Themes For 2025 Event,
    1 month ago
    Lagos SWAN Joins UN To Celebrate World Nutrition Month At Unilag Confab
    2 months ago
  • Business
    • Banking & Finance
    • Oil & Gas
    BusinessShow More
    Petralon's Nigerian Drilling Campaign to Boost Offshore Oil Output
    Petralon’s Nigerian Drilling Campaign To Boost Offshore Oil Output
    3 weeks ago
    Year 2025
    How Nigeria Can Unleash Its Economic Potential – IMF
    3 weeks ago
    GTCO Plc Becomes 1st West Africa’s Financial Services Institution To Achieve Listing And Trading Of Its Ordinary Shares On London Stock Exchange
    3 weeks ago
    Unity Bank
    Unity Bank Empowers Young Entrepreneurs With ₦16M Business Grant
    3 weeks ago
    NNPCL Board Accused Of Planning Lavish Party In Rwanda Amidst N210tn Financial Scandal
    1 month ago
  • Health
    Health
    Show More
    Top News
    In Ghana, Demands For Body Enhancement Surgeries On The Rise
    3 years ago
    Women And Men Mistakenly Given Different Advice To Prevent Heart Disease
    3 years ago
    FIND Welcomes Adoption Of Historic WHO Assembly Resolution On Diagnostics
    2 years ago
    Latest News
    AIDS Society Welcomes US Bipartisan Move To Protect PEPFAR
    6 days ago
    SSB Tax: Industry Actors, Paid Mouthpieces Slammed Over Campaign To Stop CAPPA
    2 weeks ago
    CAPPA Warns Nigerians On Excessive Consumption Of Sugar-sweetened Beverages, Says Nigeria Is In The Throes Of Public Health Crisis
    3 weeks ago
    Rising Non-communicable Diseases: WHO Wants Higher Taxes For Sugary Drinks, Alcohol, Tobacco
    3 weeks ago
  • More
    • Sports
    • Aviation/Transportation
    • Deliverance Hour
    • Industry & Labour
    • Insurance
    • Interview
    • Judiciary
    • Metro
    • Opinion
    • Property
    • Religious
    • Romance
    • Science & Discovery
Reading: Impact Of Online Trading Platforms Like Temu On Nigeria’s Economy
Share
Notification Show More
Aa
Independent News ExpressIndependent News Express
Aa
  • Home
  • International
  • Africa
  • Corporate News
  • Politics
  • News
  • Entertainment
  • Lifestyle
  • Business
  • Health
  • More
Search
  • Home
  • International
  • Africa
  • Corporate News
    • Media Outreach
  • Politics
  • News
    • Agriculture
    • Breaking News
    • Tech
    • Maritime
    • Crime
    • Art & Culture
  • Entertainment
    • Comedy
    • Movies
    • Music
    • Television
    • Concert & Events
  • Lifestyle
    • Fashion
    • Love & Life
    • Food & Drink
    • Travel & Tourism
    • Relationship
    • Sex
  • Business
    • Banking & Finance
    • Oil & Gas
  • Health
  • More
    • Sports
    • Aviation/Transportation
    • Deliverance Hour
    • Industry & Labour
    • Insurance
    • Interview
    • Judiciary
    • Metro
    • Opinion
    • Property
    • Religious
    • Romance
    • Science & Discovery
Have an existing account? Sign In
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Independent News Express > Blog > Business > Impact Of Online Trading Platforms Like Temu On Nigeria’s Economy
BusinessIndustry & Labour

Impact Of Online Trading Platforms Like Temu On Nigeria’s Economy

Last updated: 2025/05/10 at 7:31 AM
3 months ago
Share
SHARE

BY DR. DONALD PETERSON

The emergence of online trading platforms like Temu, which source products cheaply from China and sell them at affordable prices in markets like Nigeria, presents both significant challenges and opportunities for Nigeria’s developing economy. Let me analyze the impacts in detail and suggest potential policy responses.

Economic Impacts on Nigeria

Negative Impacts

- Advertisement -
Ad imageAd image
  1. Suppression of Local Manufacturing
  • Local producers struggle to compete with artificially low prices from Chinese mass-manufactured goods
  • Emerging Nigerian industries in textiles, electronics, household items, and light manufacturing face severe competitive pressure
  • Cost advantages stemming from China’s economies of scale, manufacturing expertise, and substantial state subsidies create an uneven playing field
  1. Trade Imbalance and Foreign Exchange Pressure
  • Increased imports without corresponding exports worsen Nigeria’s trade deficit
  • Greater demand for foreign currency to pay for imports puts pressure on the naira
  • Foreign exchange reserves diminish as currency flows outward to pay for imported goods
  1. Job Displacement and Lost Opportunities
  • Employment in manufacturing sectors remains underdeveloped as production stays offshore
  • Knowledge and skill transfer opportunities are missed when goods are imported rather than made locally
  • Young workforce lacks opportunities to develop technical and industrial capabilities
  1. Long-term Structural Economic Weakness
  • Over-reliance on imports deepens Nigeria’s economic vulnerability
  • Economic diversification efforts are undermined when imports dominate consumer markets
  • Industrial capacity building is delayed, limiting economic complexity and resilience Positive Impacts
  1. Consumer Benefits
  • Lower prices for a wide range of consumer goods
  • Greater product variety and access to goods previously unavailable or unaffordable
  • Improved purchasing power, particularly for low and middle-income households
  1. Digital Economy Acceleration
  • Increased e-commerce adoption and digital literacy
  • Development of supporting services like logistics, last-mile delivery, and digital payments
  • Growth of tech-enabled jobs in customer service, warehouse operations, and platform management
  1. Infrastructure Development
  • Pressure to improve transportation networks and logistics capabilities
  • Enhanced warehouse and distribution systems
  • Greater investment in reliable internet connectivity and digital infrastructure Government Strategies to Address the Challenges
  1. Strategic Trade Policy Measures

Targeted Tariff Structures

  • Implement graduated tariffs that protect strategic infant industries while allowing necessary imports
  • Create special economic zones with differentiated import rules to nurture domestic manufacturing
  • Apply anti-dumping measures where Chinese imports are sold below fair market value

Import Substitution Incentives

  • Identify key product categories where local production is viable and offer tax incentives
  • Provide subsidized credit for local manufacturers in these sectors
  • Create a phased approach to reducing dependence on imports in strategic categories
  1. Local Manufacturing Support

Manufacturing Clusters and Zones

  • Establish specialized industrial parks with reliable power and infrastructure
  • Offer tax holidays and reduced regulatory burdens in these zones
  • Create commodity-specific manufacturing hubs aligned with Nigeria’s resources and capabilities
Dr. Donald Peterson

Technology Transfer Programs

  • Partner with foreign manufacturers (including Chinese firms) for knowledge transfer
  • Require local content and technology sharing in exchange for market access
  • Fund technical education programs aligned with manufacturing needs

Access to Finance

  • Create specialized lending programs for manufacturing with favorable terms
  • Establish manufacturing innovation funds to support modernization
  • Develop supply chain financing mechanisms to connect SMEs with larger production networks
  1. Digital Economic Development

E-commerce Localization

  • Develop Nigeria-based e-commerce platforms with preferential terms for local products
  • Create a national digital marketplace to connect local producers directly with consumers
  • Implement “Made in Nigeria” digital storefronts with visibility advantages

Digital Skills Development

  • Invest in training programs for e-commerce entrepreneurship
  • Create incubators for digital commerce innovations
  • Support online seller communities and education programs
  1. Quality Standards and Consumer Protection

Enhanced Standards Enforcement

  • Strengthen quality control for imported products
  • Implement systems to prevent substandard imports
  • Develop Nigerian standards that emphasize local competitive advantages

Consumer Education

  • Promote awareness of the economic benefits of buying local products
  • Highlight quality and durability advantages of locally produced goods
  • Create campaigns showcasing success stories of Nigerian manufacturers
  1. Strategic Partnerships

China-Nigeria Industrial Cooperation

  • Negotiate partnerships for technology transfer and manufacturing investment
  • Create joint ventures between Chinese expertise and Nigerian resources
  • Develop specialized economic corridors for manufacturing with Chinese technical assistance

Regional Market Integration

  • Leverage the African Continental Free Trade Area (AfCFTA) to create larger markets for Nigerian goods
  • Develop export capabilities to other African nations
  • Build regional supply chains with Nigeria as a manufacturing hub
  1. Governance and Institutional Reforms

Regulatory Streamlining

  • Simplify business registration and compliance procedures
  • Create one-stop shops for manufacturing permits and licenses
  • Reduce bureaucratic obstacles to industrial growth

Infrastructure Investment

  • Prioritize reliable power supply for manufacturing zones
  • Improve transportation networks for efficient movement of goods
  • Develop specialized logistics capabilities for e-commerce

Corruption Reduction

  • Implement transparent procurement practices and customs procedures
  • Digitize import processes to reduce opportunities for corruption
  • Create accountability mechanisms for trade-related regulations Long-term Vision and Implementation Strategy:

For Nigeria to effectively counter the challenges posed by platforms like Temu while benefiting from the digital commerce revolution, a coordinated approach is essential:

  1. Phase 1 (1-2 years): Immediate protective measures and digital commerce capacity building
  2. Phase 2 (3-5 years): Targeted manufacturing development in sectors with comparative advantage
  3. Phase 3 (5-10 years): Creation of integrated production ecosystems and export capacity

Success will require policy consistency, stakeholder engagement, and careful balancing of protectionist measures with the benefits of trade. By implementing these strategies, Nigeria can transform the challenge of platforms like Temu into an opportunity for sustainable economic development based on a balanced approach to trade and local production.

Dr. Donald Peterson is the Special Adviser to Delta State Government on Entrepreneurship Development

You Might Also Like

Petralon’s Nigerian Drilling Campaign To Boost Offshore Oil Output

How Nigeria Can Unleash Its Economic Potential – IMF

GTCO Plc Becomes 1st West Africa’s Financial Services Institution To Achieve Listing And Trading Of Its Ordinary Shares On London Stock Exchange

Unity Bank Empowers Young Entrepreneurs With ₦16M Business Grant

NNPCL Board Accused Of Planning Lavish Party In Rwanda Amidst N210tn Financial Scandal

TAGGED: Online Trading platforms
INadminNG May 10, 2025 May 10, 2025
Share This Article
Facebook Twitter Whatsapp Whatsapp LinkedIn Telegram Email Print
Previous Article Igando Boys U-16 Alimosho FCC League: Forget Victory At Home, Fantastic Coach Warns Igando FC
Next Article SWAN SWAN, RSDF Partner to Celebrate Excellence As 2025 NWFL Premiership Super Six Kicks Off
about us

Independent News Express (iNews Express), a publication of 4Ds Nigeria Limited, is birthed out of the desires of the founding fathers to report News as it is.

We value Professionalism, Excellence, Service, Creativity and Integrity.

The Company

  • Home
  • About Us
  • Contact Us
  • Privacy & Policy

Quick Links

  • Advertise with us
  • Newsletters
  • Deal

Categories

Find Us on Socials

© Independent News Express. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?