CHINA NIGERIA TRADE RELATIONS AND THE BENEFIT FOR NIGERIA
Abstract
China’s growing economic influence in Africa has reshaped trade and investment
flows, with Nigeria emerging as a key partner over the last decade. As Africa’s largest
economy, Nigeria’s engagement with China between 2010 and 2020 has had far
reaching implications for industrial growth, infrastructure development and economic
diversification. While existing studies have largely emphasized trade volumes, less
attention has been given to assessing the broader benefits and challenges of this
partnership. This study investigated the economic gains Nigeria has derived from
China and Nigeria trade relations, with a view to examining the impact on
the transportation, manufacturing and energy sectors, assessing the economic benefits
of ChinaNigeria’s trade relations, identifying the benefitting sectors of ChinaNigeria’s
trade and examining the maximisation of the trade relations. Descriptive design was
adopted. Primary data from interviews with policymakers and business
stakeholders and secondary data sourced from trade reports and policy
documents were collected. Dependency Theory by Raul Prebisch served as the
framework. Data were subjected to descriptive analysis. Chinese have funded
infrastructure projects such as railways, highways and power plants. These
have improved logistics, created jobs and facilitated technology transfer to Nigeria’s
economy. Persistent trade imbalances, debt sustainability concerns and regulatory
weaknesses were marked as major challenges in the trade relationship. The study
recommends stronger trade policies, regulatory reforms and capacity building
measures to maximise the benefits of the partnership and ensure long term
sustainability.
keywords: ChinaAfrica relations, NigeriaChina relations, bilateral trade, foreign
direct investment, sustainable development
Word count: 230
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