An Analysis of the Effect of Nigeria-China Economic Relations and Development

Abstract

This study analyzed the effect of Nigeria-China economic relations and development between 2015 - 2023, with a focus on analysis of the consequences and identifying strategies for improving for Nigeria-China economic relations and development from 2015 to 2023. The study conceptualized Nigeria as a peripheral state within the global economic system, primarily exporting raw materials such as crude oil and agricultural products to China, while heavily relying on import of finished goods and advanced technologies from the Asian giant. Employing a qualitative research design, the study leveraged purposive sampling to select key stakeholders with relevant expertise from government ministries, financial institutions, regulatory agencies, international bodies, academia, and the private sector. Data were primarily collected through Key Informant Interviews (KIIs), offering nuanced insights into the trade, investment, and policy dimensions of the Nigeria-China economic relationship. To enhance the robustness of the analysis, secondary sources including academic literature, government publications, and time-series trade and investment data were used for triangulation. All qualitative data were transcribed, anonymized, and subjected to thematic analysis, ensuring that emerging patterns were interpreted within the broader context of Nigeria’s economic development. Findings reveal that that Chinese-backed projects disregard Nigeria’s environmental and labour laws, in most times the projects are fully implemented by Chinese contractors, using Chinese materials and Chinese labour. There is minimal skill transfer to Nigerians, and local firms are largely side lined. More critically, the loans come with clauses that tie Nigeria down economically. If we default, we risk losing strategic assets. Also, the study emphasized that improving institutional capacity and policy coherence in Nigeria is a fundamental strategy for better managing its economic engagements with China, technology and knowledge transfer must be institutionalized as a major condition for future China-funded projects. The study recommended that the Nigerian government should intensify efforts in building Nigeria’s technological and industrial capacity through knowledge driven economy and technology transfer clauses in bilateral agreements and Nigeria government should invest in institutional reforms and capacity building for agencies involved in foreign economic relations.