17th June, 2011
The once bubbling shopping complex located at Ojota, Lagos, South West Nigeria, Chinatown is now a ghost of its old self due to the harsh economic situation of the country which has forced some of the chinese doing business there to abandon it.
But now, the only lucrative business in Chinatown is sales of shirts, jeans and shoes.
The harsh economic conditions of the country, P.M.NEWS gathered, had forced many of the chinese entrepreneurs in the market to abandon it for Lagos Island, where business is booming. Some of them, it was gathered, have left for their country.
Investigations at the market revealed that many traders have relocated as a result of poor patronage.
Speaking with our correspondent, Precious, a manager in a boutique owned by a chinese, blamed the low activity in the market to high rent and poor management.
“Cost of rent here is very high and it is affecting our business negatively because the Chinese are left with no choice than to increase the price of their goods in order to make profit.
“Things are not as they used to be. Before, business was booming and all the shops here were occupied. But when the rent went up, some of the chinese traders left for Lagos Island while some went back to their country.
“Before, goods were very cheap here and many people patronise us, but now our prices are high and people no longer come here,†she stated.
Precious also blamed the low patronage on lack of varieties of products in the market, adding that since majority of the Chinese left, many goods disappeared from the market.
He called on the management of China Town to reduce the high rent and encourage more Chinese entrepreneurs to come back.
“If you are not a millionaire, you canâ€
A flower vase dealer, Tony, blamed the low activity in the market on the high cost of importing consumer goods.
“Business here is not moving,†he complained.
Another trader, Solomon Julius explained that the banning of Chinese clothing imports by the Nigerian government six years was a major disincentive for the Chines traders in the market.
“The impact is that most of them (Chinatown clothing shops) had to shut down,†he added.
Some vendors in Chinatown like Huang Haifeng who owns a tiny shop that sells doors and cheap Chinese suits, said doing business in Nigeria is brutal.
Many Nigerians see Chinese as indefatigable businessmen, but Huang said operating in Nigeria is tough.
“I want to quit trading,†Huang stated. “There are no profits.â€
“Even last year, we lost much money. In dollars, last year [$80,000] or $90,000. Even some Chinese, they lost more,†he explained.
Huang moved to Nigeria in 2002, because the country has Africaâ€
“Sometimes, each bag, youâ€
Huang explained further that manufacturing in Nigeria isnâ€
“The cost was too high, because thereâ€
Some Nigerians think the Chinese are taking over the country, but Huang shakes his head. “No, I donâ€
Tony Jun, another vendor in the market, runs a Chinatown shop that sells everything from 50-cent ceramic coffee cups to $10 Hannah Montana backpacks. But after nearly a decade in Lagos, Jun said itâ€
Jun plans to move back to China in the next year.
Nigerian companies have also tried to crack down on Chinese businesses for selling pirated CDs and DVDs.
Ope Banwo, an entertainment attorney, who accompanied police on a raid of Chinatown in 2006, said the police found bootlegs of Hollywood films but the merchants arrested were later released.
“When I say, as a lawyer, theyâ€
Today, you canâ€
“Theyâ€
—Jamiu Yisa