Abstract
This study which researches the bilateral economic relationship between The Federal Republic of China and The Federal Republic of Nigeria focuses on the causes, influences and disadvantages of the relations between the two countries.
The research aims to address the Relations between China and Nigeria, China's socioo-economic impacts on third world countries,emergence of China's interest in Nigeria's economy, factors that influenced China's economic interest in Nigeria, and he implications of China's influence on Nigeria's economy.
China's socio-economic interest in Nigeria can be said to be a product of various factors. Spanning from trade and market access, access to Nigerian Energy resources and the security of China nationals and investments, China can be said to have an abundance of strategic equities n Nigeria. Set against the backdrop of Nigeria’s challenging security environment are China’s strategic concerns. Broadly speaking, these interests fall into four categories: trade, energy, security, and the United Nations.
Since 2000, trade relations have risen exponentially. There has been an increase in total trade of over 10,384 million dollars between the two nations from 2000 to 2016.[27] However, the structure of the China-Nigerian trade relationship has become a major political issue because Chinese exports accounted for around 80 percent of total bilateral trade volumes. This has resulted in a serious trade imbalance with Nigeria importing ten times more than it exports to China. Nigeria's economy is becoming over-reliant on cheap foreign imports to sustain itself, resulting in a clear decline in Nigerian Industry under such arrangements.[28] In September 2018, Nigeria signed a $328 million loan with China to heavily boost the development of telecommunication infrastructures in Nigeria.
One of the greatest advantages of forming relations with China is the potential for increased trade and investment opportunities. With its strong manufacturing sector and competitive prices, China can offer developing countries access to affordable goods and infrastructure development. This can help these countries to improve their standard of living and increase their economic stability. Furthermore, Chinese investments in developing countries can lead to job creation and technology transfer, which can contribute to the growth of local industries. In addition, China's "Belt and Road Initiative" – a massive infrastructure project spanning across Asia, Africa, and Europe – has the potential to stimulate economic growth in participating countries by connecting them to new markets and promoting regional cooperation. Hence, Nigeria as a beneficiary of China's Foreign Direct Investment [FDI] has the opportunity to improve in areas of China's investments in sectors such as railways, road, trade and market and as well as employment opportunities offered by the Chinese investors
However, despite the various benefits of Chinese influence on the Nigerian economy, there lays an array of demerits of the relationship on the Nigerian economy. Enhanced influx of Chinese trade into Nigeria has mainly pushed a few of nascent local industries out of commerce, guiding to job loss and private economic insecurity for those workers. Nigeria has additionally stayed a big industry for Chinese cosmetics, that in spin has continued to enhance China’s economy preferably Nigeria’s, consequently weakening the latter’s economic security. One of the main concerns surrounding China's impact on Nigeria's economy is the issue of job displacement. The unequal relationship between the two countries has doubled the dependency of the Nigerian economy on mainland china and undermined its economic security. Also, The Chinese Embassy in Nigeria additionally undermines its economic security, by largely granting visas to Nigerians who want to import from china, that built the chance for a few of Nigerians to patronize comparatively affordable Chinese cosmetics rather than the locally made, which led to the gradual break down of local industries. Theres also the issue of unfair treatment of Nigerian workers in Chinese-owned companies. Adverse effects of China's impact on Nigeria's economy has been a major concern over the years.
In a nutshell, the research study; China's increasing interest in Nigeria's economy; implications for Nigeria's National Development evaluates the background and genesis of the bilateral relationship between Nigeria and China. In evaluation of the emergence of China's interest in Nigeria's economy, the study also reveals the implications of the socio-economic relationship on Nigeria's national development, citing ways to build a balanced economic relationship between the two countries.
