THE CHALLENGES AND PROSPECTS OF NIGERIA-CHINA ECONOMIC

RELATIONS IN THE 21 ST CENTURY.

BY
Ishaka Dele, PhD
Department of Political Science and International Relations
University of Abuja, Abuja.
[email protected],
08060507986
Abstract
Nigeria’s first contact with China took place in 1960 when a Chinese delegation, on the
invitation of the Nigerian government, attended Nigeria’s independence celebrations. The
delegation brought a message from Chinese leaders congratulating Nigeria on the victory won
by the Nigerian people in their struggle against colonialism. In February, 1971, Nigeria finally
established diplomatic ties with China more than a decade after independence. Both countries
opened embassies in each other’s capital within the year. The Chinese government has
described this relationship as a “win-win” situation. This work using the dependency theory
aimed to show that the amiable and heart satisfying description by the Chinese government does
not tally with the reality on ground. For clarity sake, the work is compartmentalized into five
sections: - introduction, theoretical framework, historical background of Nigeria- China
economic relations, lopsided relationship p whilst adopting secondary source of data collection
The main thrust of trade policy is therefore the enhancement of competitiveness of domestic
industries, with a view to stimulating local value added and promoting a diversified export base.
The findings of the study indicated that the current administration in Nigeria has resorted to
protectionist measures, including import restrictions and exchange control, to deal with the
problems of import and oil dependence. This import substitution policy is usually presaged by
economic crisis, often triggered by the collapse of the oil market and a significant drop in
Nigeria oil revenues. Although the protectionist measures have never achieved the policy
objective of industrializing Nigeria, but the Nigeria Government in it’s relation to China
believes it is the best for the economy of the country to grow. It is evident that the trade policy in
Nigeria has not contributed immensely to the developmental growth of the country. In spite of
huge a receipt from crude oil exports, an element of instability has more been observed in the
exchange rate, which in itself is a disincentive to investments in export oriented sector which
should be looked into. Thus we recommended that balance of trade is direly needed in our
relationship with china.
Keywords: Colonialism, Dependency, Economy, Diplomacy, Relationships, Periphery

1
Introduction
Nigeria is endeavoring vigorously to project a new stand of power with China, the most
astronomical and second biggest economy in the world. The two countries are of geographical
and demographic significance in their respective regions. China is ready more than ever before to
expand spheres of diplomatic and economic ties in an ever-changing world economic and
political order. Nigeria is a country that cannot be ignored in Africa. In the 21st century, China
speaks economic and commercial matters rather than military agenda. Both Nigeria and China
seek to explore and discover how to strengthen not only diplomatic ties but also expand and
deepen economic and technical fields of cooperation. Both want to create mutually beneficial
deals by narrowing their differences in order to go beyond normal diplomatic relations. The two
countries need to work hard and proactively too in creating mutually beneficial exporting and
importing activities and tariffs.
Comparatively, Nigeria is still a struggling economy while China is both the fastest growing and
second largest economy in the world. The present locale of China in the world economic system
cannot be ignored by a struggling economy like Nigeria. Logically, too, in a fast-changing world
system, China cannot ignore Nigeria in both economic and overall strategic considerations in
Africa. Nigeria remains a potential market in the world at any time. Strategically, China needs
Nigeria to consolidate its new-found relations in Africa. For Nigeria, it is time to widen
economic and strategic relations to include China as the leading economy in the 21st century. No
doubt, the USA is the strongest nation on the world stage, but China is ruling the world economy
in the 21st century (CNN: 2011).
This study will be adopting the secondary method of data collection whilst carrying out
this research. The materials for this study will be sourced mostly from written works from
libraries and archives they include: text books, journals, newspapers, and magazines. In fact, this
research work is mainly based on secondary data. Analysis of data will be descriptive and
historical.
Theoretical framework
Dependency is a situation in which a certain group of countries have their economy conditioned
by the development and expansion of another in which the former is subject (Daniel: 1980). The
main proponents of this theory are Santos, Walter Rodney, Samir Amin and d Claude Ake.
Following the trend of relations between China and Nigeria, China is trying to condition
Nigeria’s development through imbalance trade, seemingly harmless loans, poor quality
manufactured goods, and lopsided labour relations.
Dependency theory originates with two papers published in 1949 – one by Hans Singer, the other
by Raul Prebisch in which the authors observe that the terms of trade for underdeveloped
countries relative to the developed countries had deteriorated overtime because of the
exploitative nature of the relationship between the two worlds. It is a central contention of
dependency theory that poor states are impoverished and rich ones enriched by the way poor
states are integrated into the world system. Joseph Nye and Robert Keohane (1994) have tried
hard to establish that international relations are characterized by cooperation and
interdependence with win-win, mutually benefiting outcomes. What this means is that both weak
and strong economies have something to gain in a relationship, no matter the proportion.Yet the

2
dynamics of unequal relations in international division of labour cannot be ignored. The content
of imperialism applies so long as China’s economic exploits are domineering by the propensity
of unprecedented capital and productivity.
The theory arose as a reaction to modernization theory, an earlier theory of development which
held that all societies progress through similar stages of development, that today’s
underdeveloped areas are thus in a similar situation to that of today’s developed areas at some
time in the past, and that therefore the task in helping the underdeveloped areas out of poverty is
to accelerate them along this supposed common path of development, by various means such as
investment, technology transfer, and closer integration into the world market. Dependency
theorists vehemently, rejected this view but rather opined that what is causing the under
development in poor countries is the exploitative relationship that have characterized the
interactions between the poor nations and the developed ones right from the colonial times till
date. Though China is still regarded as a third world country, but it is also a known fact that
China is the second biggest economy in the world. Sequence to that is the issue of trade
imbalance and huge Chinese loans that is gradually sinking Nigeria into an abyss of debt. This
precarious trend if not speedily checked will eventually make China to condition the
development of Nigeria.
Dependency theory is a social science tool of explanation that was predicated on the notion that
resources flow from a “periphery” of poor and underdeveloped states to a “core” wealthy states
enriching the latter at the expense of the former. Here Nigeria is the former and China is the
latter.
Historical background of Nigeria-China Relations
Sino-Nigeria relations have developed rather slowly over the years. It is now gathering
momentum. It was General Gowon who as military head of state, first paid an official visit to
China in 1972 shortly after the Nigerian civil war. When his brutal military regime faced
international criticism and isolation, General Abacha also decided to go to China for support.
This was in the wake of the crackdown in Tiananmen Square in Beijing that led to China’s
international isolation as well. In 1977, the Chinese premier, Li Peng visited Nigeria too to boost
China’s renewed interest in Africa, aimed at reversing the decline in China’s trade with Africa.
Nigeria’s trade with China actually fell from 53 million US dollars in 1980 to only 7 million US
dollars in 1985, recovering somewhat to 35 million US dollars in 1989. Thereafter Nigeria-China
trade grew from 35 million to 97 million US dollars in 1993 and reached 327 million US dollars
by 1997. It is currently estimated at 13 billion US dollars (Richard: 2013). In fact, non-financial
direct investments in Nigeria by China stood at $1.79 billion (about 293.5 billion Naira) in 2013
(Nigeria Tribune, 2014).
President Jonathan concluded a five day official visit to China in 2013. The highlight of his visit
was the signing of a Chinese loan of 1.5 billion US dollars for the development of infrastructure
in Nigeria, including the expansion of four airports at Lagos, Kano, Abuja and Port Harcourt.
The official visit was reportedly marked by a lot of conviviality and cordiality on both sides with
the large Nigerian official delegation being treated to the fabled Chinese hospitality and excellent
cuisine. President Jonathan’s visit to China is significant as it intends to improve Nigeria’s
growing economic relation with China. rom the Nigerian perspectives, closer economic ties with
China have become imperative. The new Chinese loan of 1.5 billion US dollars brings to a total

3
of nearly 15 billion China’s investments and loans to Nigeria in recent years, including the 2.5
billion US dollars investment in the newly refurbished Lagos-Kano rail line. Nigeria’s share of
Chinese investment in Africa has increased to over 30%. In contrast total US FDI in Nigeria was
8 billion US dollars (John: 2012). Financial commitments by the World Bank and the IMF are
far less than Chinese loan to Nigeria. African countries are turning increasingly to China as an
alternative source for infrastructure loans badly needed.
Both countries now realize the importance of economic cooperation between them. China, the
most populous country in the world, with, the fastest global economic growth in the last three
decades, averaging 10% annually, has emerged a leading player in the global economy. Its
national economy is now bigger than that of Japan, or the EU countries combined. Within a few
decades, China has lifted some 300 million of its people from abject poverty (Daniels: 2013), a
feat without any precedent in the annals of economic development.
Nigeria, the most populous country in Africa, with vast reserves of oil and gas, needs China’s
financial and technical assistance in the development of its decaying infrastructure. China too
needs Nigeria’s oil and gas to fuel its growing industry. In addition, Nigeria is potentially, the
largest market for China’s industrial products in Africa. Nigeria’s imports from China account
for over a third of its total trade with West Africa.
As president Buhari was reported as saying in Beijing, that the increasing exploitation of shale
gas and other energy alternatives by the US and other western states has made the need for the
diversification of the Nigerian economy away from oil more urgent. Increasing Chinese oil
imports will make up for the slack in oil exports to the US. In 2016, China accounted for 40% of
the global demand for oil. Over 30% of China’s oil supply is imported (Daniels: 2018), with the
country becoming the world’s second largest consumer of oil after the US. So, closer economic
cooperation is in the mutual interest of both countries. What we are saying is that this
relationship should not be a win-lose situation rhetorically and diplomatically encapsulated under
the paraphernalia of win-win umbrella.
Economic history of Nigeria-China Relations
Sino-Nigeria relations have developed rather slowly over the years. It is now gathering
momentum. It was General Gowon who as military head of state, first paid an official visit to
China in 1972 shortly after the Nigerian civil war. When his brutal military regime faced
international criticism and isolation, General Abacha also decided to go to China for support.
This was in the wake of the crackdown in Tiananmen Square in Beijing that led to China’s
international isolation as well. In 1977, the Chinese premier, Li Peng visited Nigeria too to boost
China’s renewed interest in Africa, aimed at reversing the decline in China’s trade with Africa.
Nigeria’s trade with China actually fell from 53 million US dollars in 1980 to only 7 million US
dollars in 1985, recovering somewhat to 35 million US dollars in 1989. Thereafter Nigeria-China
trade grew from 35 million to 97 million US dollars in 1993 and reached 327 million US dollars
by 1997. It is currently estimated at 13 billion US dollars (Richard: 2013). In fact non-financial
direct investments in Nigeria by China stood at $1.79 billion (about 293.5 billion Naira) in 2013
(Nigeria Tribune March, 2014). President Jonathan has just concluded a five day official visit to
China. The highlight of his visit was the signing of a Chinese loan of 1.5 billion US dollars for
the development of infrastructure in Nigeria, including the expansion of four airports at Lagos,
Kano, Abuja and Port Harcourt. The official visit was reportedly marked by a lot of conviviality

4
and cordiality on both sides with the large Nigerian official delegation been treated to the fabled
Chinese hospitality and excellent cuisine. President Jonathan’s visit to China is significant as it
undermines Nigeria’s growing economic relation with China. From the Nigerian perspectives,
closer economic ties with China have become imperative. The new Chinese loan of 1.5 billion
US dollars brings to a total of nearly 15 billion China’s investments and loans to Nigeria in
recent years, including the 2.5 billion US dollars investment in the newly refurbished Lagos-
Kano rail line. Nigeria’s share of Chinese investment in Africa has increased to over 30%. In
contrast total US FDI in Nigeria was 8 billion US dollars (John: 2012). Financial commitments
by the World Bank and the IMF are far less than Chinese loan to Nigeria. African countries are
turning increasingly to China as an alternative source for infrastructure loans badly needed. Both
countries now realize the importance of economic cooperation between them. China, the most
populous country in the world, with, the fastest global economic growth in the last three decades,
averaging 10% annually, has emerged a leading player in the global economy. Its national
economy is now bigger than that of Japan, or the EU countries combined. Within a few decades,
China has lifted some 300 million of its people from abject poverty (Daniels: 2013), a feat
without any precedent in the annals of economic development. Nigeria, the most populous
country in Africa, with vast reserves of oil and gas, needs China’s financial and technical
assistance in the development of its decaying infrastructure. China too needs Nigeria’s oil and
gas to fuel its growing industry. In addition, Nigeria is potentially, the largest market for China’s
industrial products in Africa. Nigeria’s imports from China account for over a third of its total
trade with West Africa. As president Jonathan was reported as saying in Beijing, that the
increasing exploitation of shale gas and other energy alternatives by the US and other western
states has made the need for the diversification of the Nigerian economy away from oil more
urgent. Increasing Chinese oil imports will make up for the slack in oil exports to the US. In
2005, China accounted for 40% of the global demand for oil. Over 30% of China’s oil supply is
imported (Daniels: 2013), with the country becoming the world’s second largest consumer of oil
after the US. So, closer economic cooperation is in the mutual interest of both countries. What
we are saying is that this relationship should not be a win-lose situation rhetorically and
diplomatically encapsulated under the paraphernalia of win-win umbrella.
Nigeria-China Economic Relations and Chinese Trade Investment in Nigeria
Economic relation is conceptualized as trade and finance interaction between countries,
the arrangement for cooperation in international trade, finances and investment existing between
individual countries and sets of countries (Bloomsbury Information Ltd, 2009). Web, also
defined economic relations as economic activity that involves participation of two countries,
most obviously trade but other forms as well some pairs of countries. On the other hand, trade
also called goods exchange economy is the transfer of ownership of goods from one person or
entity to another by getting something in exchange from the buyer. Trade is sometimes loosely
called commerce or financial transaction or barter. A network that allows trade is called a market
(Wikipedia atom feed, 2013). Also, international trade is conceptualized as the exchange of
goods and services between countries. This type of trade gives rise to a world economy in which
prices or supply and demand affect and are affected by global events. Trading globally gives
consumers and countries the opportunity to be exposed to goods and services not available in
their own countries. Hence, if you walk into a supermarket and are able to buy South American
bananas, Chinese LG television, Brazilian coffee and a bottle of South African wine you are
experiencing the effects of international trade (Investo,2012).

5
 In line with the above, (Gudkun, 2010) has estimated that China has invested over $7.24
billion (N1.08 trillion) in Nigeria’s economy so far especially in strategic areas like agriculture,
energy, electricity, construction and telecommunications. According to him, the volume of
bilateral trade between Nigeria and China has hit $6.37 billion (N994 billion) in 2009. It stood at
over 8 billion at the end of 2010, and reached 10 billion in 2012 according to (Vanguard news,
February 23, 2013 p 11) The influx of finished goods to many developing countries has
undermined production capacity of many companies in such countries, Nigeria inclusive with
developed economies thriving on low trade relationship among developing economies in Africa,
(Adekoya & Sunmola, 2013). Despite the negative reports in the foreign media, investors and
retail Chains both foreign and local, have the zeal to tap from the nation’s clear potential – a
large population, positive macro-economic growth and strong appetite for consumer goods, thus,
dramatically expanding their domestic retail foot print in the country. Nigeria’s manufacturer’s
problems, the intrusion of Chinese in the real sector has further limited the chances of quick
growth of many industries (Adekoya & Sunmola, 2013).
Between 2000 and 2010 annual Nigerian-Chinese trade increased nine-fold, from $2
billion to $18 billion. Ten major bilateral agreements concerning commerce, agriculture, tourism
and security were signed during that period. Nigeria imported more goods from China in 2012
than it did from the U.S. and India combined (Nigeria's number two and three import partners,
respectively). Today, more than 200 Chinese firms operate in Nigeria. While in Beijing last
week, Nigerian President Jonathan signed nine memoranda of understanding with the Chinese
government. China agreed to provide Nigeria with a soft loan of $1.1 billion loan in exchange for
Nigeria agreeing to increase its daily supply of oil to China ten-fold (from20, 000 barrels per day
to 200,000) by 2015.
The Central Intelligence Agency (CIA) world fact book on Nigeria for 2013 revealed that
the United States is the top destination for Nigerian exports, followed by India, Spain and
France; while on the other hand, China is the lead source for Nigerian imports, followed by the
United States, the Netherlands, South Korea, and the United Kingdom. From extractive
industries to energy; from transport and infrastructure to telecommunications; and from
manufacturing t Agriculture or raw materials, China holds sway in Nigeria, out-competing the
West in every sense of the world.( Ajakaiye, 2006) opined that a spectacular trend in China-
Africa relation is the domination of trade by a few African countries including Nigeria, Because
of the advantages of resource location, level of economic development and leverage of strategic
importance in the African continent. Perhaps, this stands China out as non-charity-organization.
In his own contribution, (Fadina, 2007) asserts that China-Africa bilateral trade and
investment rate moved from less than 10 billion US dollars in 2010 to nearly 40 billion dollars.
In the first half of 2006 trade volume between China and Africa grew 47% (percent) faster than
the 38% (percent) growth of China’s growth in trade generally. (Ogunsanwo, 2007) opined that
Nigeria has remained a good market for Chinese goods and investment. The author buttressed
much on the accusation against the Chinese companies of filling Nigerian markets with cheap
and sub-standard products, thus contributing in the demise of nascent industries in the country.
This ugly scenario is an illustration of the negative effect of China-Nigeria relations on the
Nigerian economy. However, Kun stressed that there is wider surplus against Nigeria, noting that
the imbalance needs to be resolved to achieve close ties. He maintains that the important reason

6
for China’s surplus with Nigeria was due to the different economic structures of the two
countries.
Challenges of the Nigeria-China bi-lateral relationship
The bilateral relations between the Federal Republic of Nigeria and the People’s Republic of
China have expanded on growing bilateral trade and strategic cooperation. China is considered
one of Nigeria’s closest ally and partner. They are also one of Nigeria’s important trading and
export partners. According to a 2014 BBC World Service Poll, 80% of Nigerians view China’s
influence positively, with only 10% expressing a negative view.
The formal the Charge d’Affairs of Chinese Embassy in Nigeria, Qin Jian revealed that, the
bilateral trade volume between China and Nigeria from January to July 2016, stood at $6.46
billion. This represented 7.6 percent of the total trade volume between China and Africa, 36.4
percent of total trade volume between China and ECOWAS.
It is unfortunate that the full details of this analysis in the ratio of imports to exports were not
stated. However, it was revealed that in 2016, Nigeria spent about N1.57 trillion to import goods
from China as compared to a measly N157.5 billion obtained from export to China, showing that
Nigeria imported ten times more than their exports to China. It was also estimated that in 2016,
Nigeria spent about N839 billion on imports from China and earned just N82.3 billion from
exports.
China has adequately benefited from the balance of trade between both countries, where import
from China between 2013 and 2016 was 7.8 times more than Nigeria’s export. China is one of
the few trading partners that Nigeria still operates a trade deficit with, as 22 percent of Nigeria’s
imports between 2012 and 2016 were from China, while only 1.5 percent of exports went to
China. The Chinese Embassy who have immensely benefited from imports brought into Nigeria,
however, never mentions this imbalance.
1n 2015, the Industrial and Commercial Bank of China Ltd (ICBC) and Nigeria’s Central Bank
allegedly agreed on a currency swap deal. The purpose of the deal was to address short-term
foreign currency liquidity challenges and ease the pressure on the dollar as China’s trade
relations with Nigeria was on the rise. The currency swap deal has its downsides because it has
the potential to weaken Nigeria’s domestic production, as the country would then rely on China’s
imports since importers would have easy access to the Chinese Yuan to bring in cheap goods
rather than produce within the country. The government has however denied the swap deal.
Nigeria needs to improve its domestic trade capacity to possess a favourable trade position with
China. Creating partnerships with the Chinese should be to increase manufacturing capacity of
goods. Nigeria has the capacity to produce for itself rather than depending on import from China.
A conscious deficit gap closing should be seen if Nigeria continues to progress in its
industrialisation agenda. Nigeria’s sole focus should be on creating a sustainable model to ensure
local economic development and growth. 
Nigeria’s unfavourable trade with China has led to the collapse of industries like the textile
industry. China has been associated with the importation of several substandard items into
Nigeria with the Federal Government doing little or nothing to stop this. In 2015, the National
Agency for Food and Drug Administration and Control (NAFDAC) reported that 91 percent of

7
tomato pastes imported into Nigeria were substandard with most of these imports arising from
China and India. China has been a major beneficiary of the slump in the oil prices with Nigeria
being an exporter of crude oil to China.
Staff relations remains an area that the Nigerian government has failed to handle properly.
Scores of Nigerian workers have accused Chinese employers of maltreating their staff and poorly
compensating them. It is also rare to see Nigerians within the leadership structure of Chinese
companies based in Nigeria. “What is the economic sense if the deal allows Chinese to take 100
jobs out of 110 jobs, leaving only 10 for Nigerians?” said Nigerian Industrialist, Mazi Sam
Ohuabunwa.
Most Chinese companies rather bring their citizens into Nigeria without transferring any major
technical skills to Nigerians. This is as a result of lack of law creation and enforcement
regulating labour relations within the country.
The mentality that China’s current relation with Nigeria is a favourable one needs to be changed.
Rather, Nigeria must seek to accept only partnerships that would benefit the country rather than
hurt us. “A review of the exploitative elements in this marital contract is long overdue. Every
romance begins with partners blind to each other’s flaws before the scales fall away and we see
the partner, warts and all. We may remain together – but at least there are no illusions”, said
Sanusi Lamido’s Sanusi, former Governor, Central Bank of Nigeria and Emir of Kano.
Several analysts and commentators like Emir of Kano hold diametrically opposite views on the
implications of the emergence of China on the world stage for African development prospect.
However, I find the position of His Excellency, Jakaya M. Kikwete, Former President of the
Republic of Tanzania quite inspiring as he rightly stated that China and India will not transform
Africa; Africans will transform Africa (World Economic Forum on Africa, 2006).
Gregory (2009) Elephants, Ants and Super Powers: Nigeria’s Relations with China is
acknowledged as one of the most comprehensive study on Nigeria-China relations. Gregory
considers economic and political relations between Nigeria and China as the most important
aspects in the study of the two countries bilateral relations up to year 2007. The rest of Gregory’s
work centered on the sectorial relations starting with the critical oil and gas sector, and followed
by power generating, rail transport, construction, communication, manufacturing and financial
sectors. However, areas yet to be covered in Gregory’s work in the view of Nigerians towards
Chinese goods-most of which are inferior and substantial. Moreover, the grand strategy of China
in Nigeria especially in the oil sector.
Utomi, (2008) China and Nigeria which examined the evolution of trade and diplomatic ties
between Nigeria and China particularly from 1999 to 2007.Utomi’s work covered key economic
issues that were left untouched by other writers especially the non-state actors in the economic
relations between the two countries, under study. Although, Utomi’s work did not look at some
important areas i.e. military, culture, politics etc his work is useful in providing details on the
shortcomings of the relationship between Nigeria and China from 1999 to date.
David (2005) writing on China and Nigeria trade relation noted that, Chinese manufacturing
sector has created enormous demand for oil, material and energy resources. China has been able
to adopt its foreign policy to its domestic development strategy to an unprecedented level by

8
encouraging state controlled companies to seek out exploration and supply contracts with
countries that produce oil, gas and other resources. China aggressively courts the Nigerian
government with diplomacy, trade deals, and aid packages. The strategy targeted Africa as its
source of oil and Nigeria being the major producer of oil is not excluded.
Kang (2005) wrote that, Chinese companies see Nigerian excellent market for their low-cost
consumer products and a bourgeoning economy opportunity as Nigeria is in the process of
privatization and liberating its economy to foreign investors. Marafa (2005) noted that, over the
years, China and Nigeria have signed a number of agreements on trade, economic and
technological cooperation, scientific and technological, and very recently on investments,
consular affairs, narcotic drugs, and tourism cooperation was signed in 1980.
Edward (2002) also believes that, the identification of common ground between Nigeria and
China, which has been pursued vigorously by both countries. Much of this thinking carries from
the series of bilateral agreements signed by the governments from 2001. He further stated that
Nigeria is China’s second largest partner in Sub-Saharan African, after South Africa, with the
trade volume registering over 1.144 billion dollars in 2001, hitting on all time high. Edward
(2002) however, regretted that the balance of payment between the two countries has been
unequal and therefore called for an aggressive promotion of Nigeria non-export in China. He
called for an enlargement in the trade items from the 35 most needed products including cassava,
to mineral resources such as iron ore; zinc etc. At present cassava export to China is hopped to
constitute the highest commodity from Nigeria while China exports textile, apparels, and foot
wears to Nigeria. According to a Chinese official bulletin, Chinese companies have invested a
total of $175 million in Nigeria, primarily on oil exploration projects and infrastructure. As of
January, 2006, Chinese owned energy company CWOOC announced that it will buy a 45% stake
in an off shore oil field in Nigeria for US D 2.27 billion. Today, china has significant trade
presence in Nigeria both oil sector and trade. This assertion is valid in the contemporary Nigeria
and Chinese relations.
A comparison of China’s contribution to aid with other donors still remains small but growing
focus has also been made on the nature and quality of Chinese aid and many authors have been
critical of Chinese policy since it disregards the governance of the partner countries. Among the
skeptics, Ademola et.al (2009), suggests that the China-Nigeria trade might not be beneficial to
Nigeria because the relationship creates a disincentive for the region’s long term objective of
diversification.
Furthermore, China exports have grown and most likely crowding-out some non-Chinese goods
especially from Nigeria and Africa. More so, Ademola et al (2009) analyzed the impact of
China- Africa trade relations and found out that there are gains and losses in this engagement,
with more cost incurred than benefits.
Furthermore, Akinola (2010) suggested that the criticism of China’s policy of non-interference in
domestic affairs, transparency, tied loan and importation of labor does not mean the west are not
guilty in their own way in the underdevelopment of Africa. He rather suggests that Africa
countries should develop policies that protect the local economy. It is assumed that China-Africa
would continue to grow with the development of strategic alliance through FDI, which is already
happening. This notwithstanding, the impact of Chinese FDI on exports, imports and economic
growth in Nigeria indicates that the bilateral trade is not favorable in the short run but there is a

9
possibility that the relationship might enhance economic growth in the long-term (Nabine,
2009).Chinese-Nigeria trade volumes almost tripled from $1.1 to $3.1 billion between 2002 and
2005(People’s Daily, 2005).
China has set up over 30 solely owned companies or joint venture in Nigeria actively involved in
the construction, oil and gas, technology, services and education sectors of the Nigerian
economy. China main exports to Nigeria include: motorcycles, machinery equipment, auto parts,
rubber tires, chemical products, textiles and garments, footwear, cement, and etc (China.org.cn).
Nigeria’s export products to China include; mineral fuel and lubricants followed by crude
materials excluding food and fuel, beverages and live animals, manufactured goods, etc. it is
indisputable fact that the influence Chinese in the area of economic and trade widen every day in
Nigeria. However, the expansion of Nigeria’s economic interactions with China is constrained by
a number of factors. These include the imbalance in the structure of level of their trade, the
inadequacy of the industrial infrastructure for promotion of relations, the incidence of flooding of
the Nigerian market with substandard goods from China and inability to implement various
bilateral agreements between the two countries among other problems.
Findings of the Study
But there is a pitfall here which Nigeria has to watch very closely in this seemingly win-win
relationship with China. There is a chronic and growing trade imbalance between the two
countries in favour of China. Nigeria should seek to reduce this vast trade imbalance by
increasing its non-oil exports to China. China’s exports to Nigeria are currently estimated at 3
billion US dollars, while Nigeria’s exports are estimated at only 1 billion US dollars, a trade gap
of 2 billion US dollars (Peter: 2013). This trade deficit, a concern to Nigerian leaders and its
private sector, is being discussed by the Nigeria-China Joint Planning Commission.
Nigeria should be wary of being used by China as a dumping ground for cheap Chinese exports,
particularly textiles, as this will increase the existing trade imbalance between the two countries
in favour of China and lead to more job losses for Nigeria. Nigeria trade Unions have been
reported as blaming Chinese imports for the loss of 350,000 Nigerian manufacturing jobs,
chiefly in the textile sector (John:2012). For instance, in 2006, South Africa imposed two-year
import restrictions on some Chinese textiles. In this regard, the Nigerian authorities are
beginning to take some limited action against cheap and fake Chinese exports. In 2006,
NAFDAC banned pharmaceutical imports from some Chinese and Indian companies
(Idris:2007).
It is true that China’s relationship with Nigeria has helped the country infrastructure-wise, but it
is clearly evident that the relationship has been purely and majorly a mercantile transaction
between business elites and politicians. There is no doubt that the terms of trade still
unfortunately favoured China, whose exports represented 73% of the bilateral trade total in 2015
and 68% of the total in 2017. In 2018 it was 93%.
From the above, one can notice clearly how the trade imbalance between the two countries has
favoured China in increasing proportion. Annoyingly, this ugly hydra-headed octopus trade
imbalance has persisted to a more heinous level at present.

10
In much of Nigeria, likewise Africa in general, the Chinese have set up huge operations. They
have also built infrastructure. But, with exceptions, they have done so using equipment and
labour imported from home (China), without transferring skills to local communities. So, China
takes our primary goods and sells us manufactured ones, which means that this relationship
equips the Chinese with more technological skills and left us with none. This was also the
essence of colonialism. The British came to Nigeria to secure raw materials and markets. Nigeria
is now willingly opening itself up to a new form of imperialism (Sino-imperialism).
The days of the Non-Aligned Movement that united us after colonialism are over and gone.
China is no longer a fellow underdeveloped economy, let us not deceive ourselves, it is the
world’s second biggest economy capable of the same forms of exploitation as the West. With the
trend of relationship between the two countries at present, we can confidently say that China is
rather a significant contributor to Nigeria’s deindustrialization and underdevelopment.
This Nigeria’s love of China is founded on a vision of seeing the country as a saviour, a partner,
a fellow third non-aligned member and a model. We cannot blame the Chinese, or any other
foreign power for our country’s problems. We must blame ourselves for our fuel subsidy scams,
for oil theft in the Niger Delta, for our neglect of agriculture and education, and for our limitless
tolerance of incompetence. That said, it is a critical precondition for development in Nigeria and
the rest of Africa that we remove the rose-tinted glasses through which we view China.
Chinese companies are known for being “closed” that is they hardly employ local experts and the
conditions of employment of Nigerians in Chinese firms do not seem to conform to either the
Nigerian Labour Law or the International Labour Organization (Olawale:2010). As a corollary,
Chinese firms have a knack of maltreating their workers, which would work against the capacity
building of employees. China is involved in Human rights violation against Nigeria. Many
Nigerians are in Chinese prisons or detention camps charged with offences like drug and fraud as
well as “minor” immigration breaches. In July 2010, a group of Africans demonstrated in
Guanzhou against the killing of a Nigerian who died from the assault of Chinese law
enforcement officers (Iortin:2011). Worried Nigerians have consistently called on the UN and
G20 countries to force China to comply with international protocols on the protection of human
rights.
Finally, the issue of the huge Chinese loan and investment (18 billion US Dollars (Daily Trust,
2013) which Nigeria owes mean that the country has precariously mortgaged both her present
and future into the clutch of the Chinese.
Prospects of the Nigeria – China Bi-lateral relations
Moreover, as major developing countries, China and Nigeria have extensive cooperation in many
international and regional issues. Chinese people will never forget that Nigeria and other
developing countries from Asia, Africa and Latin-America stood up to outside pressures, held on
“One China Policy”, and fully supported the resumption of China’s legitimate seat in the United
Nations. Since then, for major issues which have international and regional implications, China
and Nigeria have always communicated and supported each other so as to jointly safeguard the
interests of the African and developing countries.

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In view of the hitherto mentioned challenges, I implore all African leaders to wake up to build a
large room of development rather than trapping themselves in a small room of thinking. Nigeria,
most especially must change her paradigm from being a consuming nation to a producing nation.
She must be industrialised while the populace should be encouraged to patronize, ‘made in
Nigeria goods.’ In addition, for ‘made in Nigeria goods’ to be competitive, the nation needs
uninterrupted power supply coupled with focusing on standard regulatory control of products
that is not blurred by corruption. This will help put Nigeria in her rightful place within the
community of nations.
Conclusion and way forward
There is no doubt that Nigeria and China bilateral relationship will be of immense benefit to both
countries if well pursued. Using the dependency theory, we have argued that the imbalances in
Nigeria-China relation especially in the area of trade (which we graphically showed) must be
corrected so as to match the rhetoric win-win situation by which the contact between the
countries are being described.
As the China-driven bilateral relations cannot be reversed just for the asking, Nigeria needs to
confront the indigenous technology capacity building gap as this is the only way by which
Nigeria will avoid Sino imperialism in their relations with China. Nigeria must be
technologically relevant to explore and exploit gains in its relations with China.
Fundamentally, the Nigerian leadership must demonstrate the political will to manage Nigeria’s
pluralism for peace, security and sustainable economic transformation.

References

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CNN (2011) “China’s Giant Economy” September 20th
Daniel.A.O. (1980) Imperialism and Dependency, Fourth Dimension publishers, Enugu,
Nigeria.
Daniel .R. (2013) China: The Emerging Giant, palmgrove publications, New Delhi, India.
Daily Trust (2013) August 28th Wednesday.
Idris.A. (2007) NAFDAC and China, Ikenga publishers, Enugu, Nigeria.
Iortin. C. (2011) Nigeria Vs China Human Rigths Stand, Virgin press, New York, USA.
John. E. (2012) Chinese investments in Nigeria, Glow press, Shanghai, China.
John. O. (2012) Chinese Textile Imports, Green press, Aberdeen, Scotland.
Nigeria Tribune Thursday 20th March, 2014.
Olawale.B. (2010) Nigeria-China Labour Relations, Ikenga publishers, Enugu, Nigeria.
Peter.E. (2013) Trade gap between Nigeria and China, flower press, Beijing,China.
Robert.K. (1994) Dependency and interdependency, Orange press, Durban, South Africa.
Richard.A. (2013) Nigeria- China Trade growth, white press, Pretoria. South Africa.
South Africa Institute of International Affairs-Nigeria-China bilateral trade, 2001-2008.

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