NIGERIA-CHINA RELATIONS: A CRITICAL APPRAISAL OF THE ECONOMIC RELATIONS (1999-2007)

NIGERIA-CHINA RELATIONS: A CRITICAL APPRAISAL OF THE ECONOMIC RELATIONS (1999-2007)

ABSTRACT

The study traced the historical development of Nigeria-Chinese from 1999-2007 with emphasis on economic bilateral relations. Furthermore, the study discussed the relationship between Nigeria and China in key areas such as bilateral trade, oil and gas, power generation, rail transport system, road construction, communication, manufacturing and retail loan finance and general free trade zone. . Attention was also given to the domestic factors that shaped China‟s relations with Nigeria and how Nigeria views the changing role of China on the African continents. Historical method or approach was employed in this study. Both Primary and Secondary sources published were used by the researcher. The study established that Nigeria‟s external relation with China has been beneficial to the two countries. Again, it established that the relationship between Nigeria and China is a win-win strategy but this is yet to be thoroughly maximized by the Nigerian government given the political, military, technological and economic base of China as an emerging Super Power in international politics.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Given the political complexities and the emergence of china as a great economic world power, it becomes important for us as students of international relations to study the strategic relationship between a “democratic” Nigeria and “undemocratic” China. This position emerges out of what the year 1971 symbolized as a divide between two historical phases for both Nigeria and China. For Nigeria, 1971 marked the close of the first ten years (1960-1970) of its existence as an independent state, And by any account, that was a remarkable decade for Nigeria. As a matter of fact, the course and impact of events in those ten years would have been remarkable for any country in historical terms. For China, on the other hand, the year 1971 signified a historical benchmark because for the first time since 1949, it achieved international recognition by attaining full membership of the united nations (UN) in complete replacement of Taiwan which had occupied that seat as the official Republic of China (ROC).Thus both Nigeria and China enjoyed a moment of diplomatic triumph from their respective point of view. However, following China‟s economic growth in the 1980‟s, Nigerian leaders began to look forward to a more serious economic engagement with China (Bukaremba, 2005). 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” (Agubamah,

2014). The period between 1971 and early 1999 witnessed minimal diplomatic exchanges, low bi-lateral trade relations, a near absence of Chinese Foreign Direct Investments inflow to Nigeria.

With the inauguration of the former President Chief Olusegun Obasanjo in 1999, Nigeria-China relations began to deepen. The First Ministerial conference of the forum on China-Africa cooperation was held in Beijing, China in 2000. The conference is believed to have laid the foundation and set the pace for a new order that has witnessed a significant shift in Nigeria‟s and Africa‟s foreign diplomatic and economic relations. Obasanjo did not attend but senior Nigerian representatives did and in the same year the China Civil Engineering Construction Corporation(CCECC) was awarded a tender to build 5000 housing units for athletes participating in the eight All African Games in Abuja, which were built. Also both countries signed an agreement on the establishment of a Nigeria Trade Office in China and a China Investment Development and Trade Promotion center in Nigeria in 2001. In 2004, the volume of trade grew by 17.6 percent, with Nigeria‟s exports to China registering a growth of 330 percent. China‟s main exports to Nigeria are light industrial, mechanical and electrical products ( Akongbowa, 2008). Soon after the Beijing conference, Sino-Nigeria relations assumed a new dimension characterized by rapid and aggressive economic, cultural, scientific, and educational cooperation, increasing Chinese Foreign Direct Investment (FDI), aids/ grants, technical assistance as well as several sponsored training programs for Nigerian officials. China has now emerged as Nigeria‟s and Africa‟s major development and trade partner, having taken the place of Europe and North America in Nigeria‟s development agenda.

Bilateral relations between the two countries intensified further during President Obasanjo‟s second term in office, from 2003-2007.To further enhance the bilateral relations between the two countries was the visit of President Hu Jintho and Prime Minister Wen Jiabo of China to Nigeria between , 26th-27th,April, 2006 and Obasanjo visiting China twice. During President Hu‟s visit to Nigeria, he agreed with President Obasanjo to work on a strategic partnership between the two countries.

They both agreed to establish an intergovernmental Nigeria-China investment forum which was later founded in 2006.

The pattern of economic interaction between Nigeria and China is compressed to a mid- level position. Both Nigeria and China have the West including (Japan) as their major trading partners. Below this level they, jointly operate their own system of exchange where China has the opportunity of exporting advanced industrial Goods from West and exporting its own goods and technology to Nigeria. This flank is underpinned by the following agreements:

i)A bilateral trade agreement, signed on November 3,1972.This agreement expired in 1985. But subsequently, the two countries exchanged a draft bilateral trade agreement with each other through the diplomatic channel.

ii) A bilateral agreement on economic, scientific and technical cooperation. This was first signed on November 12, 1972 and subsequently renewed on July 8, 1982 and April 1996.

iii) Agreement on cultural , and educational cooperation. This was first signed on November 20, 1981 and subsequently renewed under the implementation programmes of cultural and education agreements on March 28, 1990.

.iv) May 1997 Agreements;

a) Reciprocal promotion and protection of investments.

b) Protocol on cooperation in electric power project in Nigeria.

c) Protocol on bilateral cooperation on steel industry.

d) Oil cooperation

v) Agreement on the establishment of Nigeria Trade Office in China and the China Investment Development and Trade Promotion Centre in Nigeria signed on May 22, 2001.

Additionally, Nigeria and China operate one of the biggest projects between them-i.e the $528.60 million contract of December 9, 1995 between the Federal Ministry of Transport and China Civil Engineering Construction Corporation (CCECC) for the rehabilitation of the Nigeria railway system. On the whole Chinese construction companies have been involved in projects covering roads and bridges, ports, oil fields, bore holes, agriculture, and power distribution and supply. Between 2003 and 2007, Nigeria was a top destination for Chinese Foreign Direct Investment on the continent, second only to South Africa. Its attractions are clear: vast energy reserves and a large domestic market of 150 million inhabitants with growing disposable incomes.

1.2 STATEMENT OF PROBLEM

The foundation of Nigeria-China relations dates back to the early 1970‟s.Both countries established formal diplomatic ties in February 1971. Ever since then, scholars of foreign policies have produced research works on the bilateral relationship that exists between Nigeria and China.

However, in as much as the relationship seems irresistible, the basic problem of sincerity of intentions still plays a limiting factor. Thus it becomes important to look at how both sides have benefitted from their relationship.

Analysis shows that hegemonic stance of china in international politics has allowed it benefit more from relating with struggling African countries who usually because of their internal politics stay at the bottom. Thus, given the internal dynamics of Nigeria‟s politics that features corruption as its shortcoming and has overtime formed a cliché in the Nigerian political milieu, the possibilities of achieving a win-win situation has really been hampered.

Flowing from the foregoing it becomes necessary to study the root and patterns of this relationship which necessitated the reasons for the research. However it is therefore observed that the problems faced by Nigeria from its economic relations with China are as follows: The influx of allegedly sub-standard goods from China. This issue was taken up officially by the standards Organization of Nigeria.

The other issue is China‟s steady trade surplus against Nigeria ever since recorded trade between them began in the mid- 1950‟s. On the other hand China also has points of complaint over doing business in Nigeria .One, the problem of insecurity arising from armed robbery and pronounced social proclivity towards violence and lawlessness. The high cost of operations due to inadequate power and water supply; the bad state of telecommunications and infrastructure (i.e. roads and railway); poor police work as when reported crime investigations do not yield any results and corruption.

1.3 OBJECTIVES OF THE STUDY

The research will attempt to:

1. Examine the roles played by both countries in strengthening bilateral relations

2. Evaluate the performance of both countries in economic bilateral relations.

3. Highlight challenges confronting Nigeria-China bilateral Relations.

4. Propose ways to achieve sustainable socio-economic development and self-reliance through regional economic integration.

TOPIC: NIGERIA-CHINA RELATIONS: A CRITICAL APPRAISAL OF THE ECONOMIC RELATIONS (1999-2007)

Chapters: 1 - 5
Delivery: Email

Number of Pages: 95

Price: 3000 NGN

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