Since the dawn of the new millennium and century in 2000 A.D. relations between China and Nigeria, and indeed Africa has been on an aggressive upward trend characterized by unprecedented renewed positive and mutually beneficial cooperation arrangements, to the concern of western countries across Europe and North America.
Nigeria-China relations can be traced back to 1971 when the two countries first established diplomatic relations and subsequently exchanged envoys. However the two counties really didn’t have much going between them. 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. Nigeria at the time adopted a broadly pro-western policy with traditional development and trade partners mostly of European and American origin. Western countries dominated Nigeria’s foreign political and economic relations. They accounted for most of the Foreign Direct Investment inflow to Nigeria, they also accounted for nearly all foreign aids, grants and technical assistance received by Nigeria. In return, nearly 90 percent of Nigeria’s exports (mostly crude oil) went to the west.
However the trend was to change at the dawn of the new Millennium. In October 2000, China hosted the first Ministerial Conference of the Forum on China-Africa Cooperation in Beijing. 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. China has now emerged as Nigeria’s and Africa’s major development and trade partner, having taking the place of Europe and North America in Nigeria’s development agenda. 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.
Several bi-lateral agreements and treaties have been signed between Nigeria and China. In 2001, the two countries signed an agreement for the establishment of a Nigerian Trade office in China and a China Investment Development and Trade Promotion Centre in Nigeria. In 2002, Nigeria and China signed an agreement for the avoidance of double taxation and prevention of Fiscal evasion with respect to tax and income. In the same year, the two countries signed another agreement on Consular Affairs. Still in 2002, the two countries signed yet another agreement on cooperation and strengthening management of Narcotic Drugs, Psychotropic Substances and Diversion of Precursor Chemicals. Nigeria and China went on to sign the Tourist Cooperation Agreement also in 2002. In 2005, a Strategic Partnership Agreement was signed by both countries, and in 2006, Nigeria signed an Economic Cooperation Agreement with Xinguang International Group of China. Beside these, several other agreements and memoranda of understanding have also been signed, and Nigeria has no doubt received various technical assistance in the areas of science and technology, military, health, education, etc. For example in 2006, China gave Nigeria a grant of 46 million Yuan to combat malaria and also train its health personnel on malaria prevention and control. In another development, Nigeria and China signed scientific cooperation agreement that resulted in the launching of Nigeria’s first communication satellite (NIGCOMSAT) to the orbit in 2007. Similarly, the Federal Ministry of Science and Technology and Huawei Technologies of China were reported to have signed a Memorandum of Understanding for the provision of National Information Communication Technology Infrastructure Backbone.
In terms of Foreign Direct Investment, total Chinese interests in Nigeria is said to have reached about $8.4 billion as at July 2012. Yonghua Ding, Head of political and press unit at the Chinese embassy in Nigeria made the disclosure. He further pointed out that China has even simplified its visa procedure in a bid to facilitate trade for Nigerian businessmen. Information about Chinese activities in Nigeria points to an increasing economic, social and cultural relations. China has set up numerous solely owned companies and joint ventures in the areas of oil and gas, telecommunication, construction, technology, transport, services, education, etc. These investments can be broadly classified into two categories namely, private and public. Some of Chinese private FDI are joint ventures with Nigerian investors; a good example is Happy Chef Restaurant. Others are either wholly Chinese owned or joint ventures with other foreign investors; examples include Plas Alliance, Royal Motors, Sun Lung Industries, etc. ZTE Nigeria is a joint venture between China and Australia.
In terms of aids, grants and other relations, available information shows that Nigeria has received various technical and financial assistance from China especially in the areas of health, education, military, infrastructural development, etc. For example, in the health sector, China has been supportive of Nigeria’s Rollback Malaria Program through the provision of anti-malaria drugs and insecticide treated mosquito nets worth about N400 million. In another development China and Nigeria signed a Memorandum of Understanding for the supply of another round of anti-malaria drugs worth N83.6 million. In the area of defense, the Nigerian Military are also said to have benefited from China’s technical assistance in the form of military training and supply of military hardware. In the area of education, Nigeria and China signed a Memorandum of Understanding in 2006 for the provision of about N670 million for the training of 50 Nigerian officials and medical personnel on malaria prevention and control. Still in education, some Nigerian educational institutions are said to have established partnership with Chinese authorities and educational institutions with a view to promoting Chinese culture, language and innovations. For example, Chinese experts are believed to be working with the NnamdiAzikiweUniversity, Akwa and a host of others to provide Chinese language teaching to Nigerian students. Under the scheme, China is responsible for sponsoring the training of the university’s staff to study mandarin in China. In terms of financial assistance, China Export Import Bank (EXIM) and Nigeria signed a financing agreement of (N 8.36 billion concessionary export grant) to support Nigeria’s infrastructural development.
However, another interesting dimension to the unfolding scenario is the aggressive scramble by various Nigerian state governments for Chinese cooperation and investment. Guo Kun, Consul General of China to Nigeria observed that “the ambitious state governments along with their Chinese counterparts are cooperating closely to bring about the success of Chinese manufacturing to Nigeria”. In February 2012, Liyel Imoke, Governor of Cross River State received the Consul-General of China to Nigeria during a courtesy call in Calabar. The meeting was simply another effort aimed at helping both parties identify further areas of cooperation. The Governor used the opportunity to woo Chinese investors to invest in tourism and agriculture in CrossRiverState. He noted that the state provides tremendous opportunities for investment given its near-crime free status, its serenity, the presence of a seaport, an airport, a soon-to-be commissioned Independent Power Plant (IPP), a Gas Pipeline, and a Free Trade Zone. Expectedly, the Consul-General noted that his visit to Calabar was to strengthen the already existing relations between China and Nigeria.
It is a well know fact that CrossRiverState is home to a couple of Chinese investments and activities. For example, Skyrun International, a Chinese air conditioner manufacturing company has been in CrossRiver since 2005. The Chinese Civil Engineering Construction Company (CCECC) signed contracts with the state government to construct a number of rural roads across the state. Recently Cross River State Government unveiled plans to introduce the teaching of Chinese language in all public schools in the state. The State Ministry of Education is understood to have approached the Chinese Embassy in Nigeria for collaboration to carry out a-train-the-trainers program with a view to establishing a Chinese language centre in Calabar as a way of fast-tracking the exercise.
From the foregoing, it seem as though China has almost literary invaded Nigeria. Some analysts who have been following the trend have raised questions like what does China really want in Nigeria? What is the real motive behind the fast growing and blossoming bi-lateral relations between China and Nigeria? Others have been asking to what extent China is different from western countries whose relations with Nigeria seemed rather one-sided and exploitative given the structure and pattern of their trade and FDI inflow to Nigeria.
Be that as it may, Sino-Nigeria relations could so far be said to have been mutually beneficial. While Nigeria aggressively seeks Foreign Direct Investment (FDI), infrastructural development, technology transfer as well as market for non-oil exports, China on the other hand seeks Nigerian oil and raw materials to feed its ever expanding industries back home as well as markets and new trading routes for their finished industrial products. China has thus found what they seek in Nigeria, the most populous black nation in the world, and Nigeria has indeed been receiving the much needed Chinese FDI and economic, technical, cultural, scientific, educational and financial support.
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Hilton Etakoh is a Consultant at
Essaypro Nigeria.Tel, 0803 273 8640.
Website: www.essayprong.com
