NIGERIA-CHINA RELATIONS: ECONOMIC PARTNERSHIPS AND DEVELOPMENT

This study explored economic relationships and development dynamics between Nigeria and China, with specific focus on the trade and investment flows and its impact on the economic growth of Nigeria. The present study highlighted the strategic motivation of the bilateral economic cooperation adopting a mixed-methods research methodology that involved quantitative and thematic analysis of the trade and investment data and interview transcripts. The recurrent themes made the interest of China in Nigeria natural resources particularly its oil and minerals to be evident as they aimed at investing in infrastructure to bridge the gaps in development that have plagued Nigeria. The data shows that the trade volumes have grown substantially in 2000-2020, with fivefold growth, as the trade between China and Nigeria grew to 20 billion dollars, which is representative of the fact that China is the biggest trading partner of Nigeria. Chinese FDI also grew particularly in Nigeria, particularly in energy, manufacturing and infrastructure which served to boost the growth rate of the GDP in the country. Regression analysis established a positive relationship between Chinese foreign direct investment (FDI) and GDP growth where a billion USD in FDI leads to a 0.75 percentage point growth in the GDP of Nigeria. Some of the issues that the study did identify include the sustainability of debt on Chinese loans, high percentage of Chinese firms in key industries and the negative impact that trade imbalances have on the economic growth of Nigeria. The findings highlighted the need to ensure that Nigeria will be able to manage its economic relations with China strategically to ensure financial stability and ensure the competitiveness of the industry in Nigeria. The paper has provided the in-depth understanding of the complex economic ties between China and Nigeria and has presented valuable knowledge regarding global economic growth and cooperation.