Nigeria and China Economic Relations (2002-2022)
Chapter One
Objective of the Study
This study undertakes an appraisal of the economic and trade relations between China and Nigeria. More specially, its objectives include:
- To find out the reasons that make Nigeria and china fell into bilateral trade
- Identify and analyse key features, patterns and developments in the main channels through which the impacts of the growth of China are transmitted to
- Critically examine the current trade and investment (including pattern and magnitude) relationship between China and
- To evaluate the reasons why Nigeria shifted trade relations to
- To review the trends of China and Nigeria economic and trade relations and accessed the prospects or the opportunities available to Nigeria in his relations with China
CHAPTER TWO
LITERATURE REVIEW
Introduction
This chapter surveys a variety of works on the subject as well as pertinent works produced by others that, directly or indirectly, contribute to our understanding of Nigerian-Chinese economic and commercial connections, trends, issues, and future prospects for both nations. The goal is to recognize the contributions made, value the work that has previously been done, and spot errors in the literature. This study aims to fill the gaps found in the existing literature.
Conceptual Clarification
Meaning of Foreign Policy
Foreign policy has as many meanings as there are interested academics and writers. Despite the fact that there isn’t a single, appropriate definition for the phrase, they share some opinions. Any nation’s foreign policy prioritizes upholding its independence and security, followed by pursuing and safeguarding its economic interests.
In the words of Professor F.S. Northedge (1968), foreign policy is understood as interplay between the outside and inside”. According to this concept, foreign policy is a response to outside influences while taking into account domestic circumstances. According to Professors Charles Lerche and Abdul Aziz Zaid, a state’s foreign policy typically refers to the guiding ideas that direct how that state responds to the international environment. Professor Joseph D. Frankel once more defined foreign policy as “a dynamic process of interaction between the changing domestic demands and the changing international environment” in 1973. According to this definition, decisions and acts that have any considerable impact on interstate relations constitute foreign policy 4iV6. It is a dynamic process that interacts with both the internal and external environments while also taking into account the national interests of the states involved.
Therefore, foreign policy is the study of a nation-state’s (driven by its interest) acts toward the outside world and the internal circumstances in which they are conceived and developed. In conclusion, foreign policy is essentially the tool used by governments to exert influence over or attempt to exert influence over the outside world in order to achieve goals that are consistent with their perceived national interests. Foreign policy differs from domestic policy in that it takes place in a setting over which the players have no control, whereas domestic policy is subject to social control provided by the law.
No nation is an island, and as a result, its objectives, ambitions, or goals cannot be fulfilled inside its own constrained borders. This is an unavoidable fact. Therefore, it is equally crucial as it is vital for all countries to utilize their resources both inside and outside of their own borders. Therefore, every country is required by law to have both an internal and an external policy. Foreign policy is all about creating, planning, and directing a state’s strategy toward accomplishing its objectives and addressing the realities of the outside world that it cannot address within its own borders. It creates policies and methods to achieve those aspirations that are within its domestic sphere of influence. Internal or domestic policy is the term used to describe this.
The degree to which a country participates in various international issues frequently reflects the country’s general outlook on the rest of the world. Here, orientation refers to a country’s overall perspective and commitment to the outside world. It is crucial to remember that up until the fall of the Berlin Wall in 1989, a nation’s foreign policy was intended to be measured against specific ideological poles, such as pro-West or pro-East, until the East-West division essentially vanished. However, it is not absolutely required for nations to design their foreign policies in accordance with power play. Foreign policy does not always need to be designed in a broad, all-encompassing manner. States with this kind of foreign policy orientation aspire to be able to respond to threats from the outside environment much more skillfully in the event that it is necessary. In these ways, a nation’s foreign policy directs and molds its tendencies for international action.
Making of Foreign Policy
The ability to make foreign policy decisions is constrained by a complex web of governmental and social constraints, regardless of whether the state is democratic or autocratic. In this course, we’ll examine this web in terms of three fundamental facets of setting foreign policy. (1) Governmental forms, (2) Situational Forms, and (3) Policy
CHAPTER THREE
NIGERIA-CHINA RELATIONS IN HISTORICAL PERSPECTIVE
Introduction
In the established international system, the state is not self-sufficient. The cause is that natural resources are not allocated fairly across all nations in the world. Trade relations are therefore essential since they will give states that lack particular commodities the chance to engage in trade and exchange goods with those of others. States enter into diplomatic contacts before determining areas of interest in the nations they intend to collaborate with since the formation of commerce relations necessitates political relationships. Therefore, this chapter outlined the development of Sino-Nigerian ties as well as the factors that led to Sino-Nigerian interactions. Additionally, how Nigeria changed her relationships from her traditional friends to Asia, especially China.
In order to distinguish China’s strategy from Western colonial intervention and demonstrate how its renewed interest in the continent differs significantly from the model of Western partnership, the relationship that resulted from China’s early contact is described as non-imperial in its intentions. (Utomi, 2008)
Language and cultural hurdles kept commerce levels between China and Nigeria in the early post-independence era relatively low in compared to Western powers that had developed strong colonial relations.
CHAPTER FOUR
NIGERIA-CHINA ECONOMIC AND TRADE RELATIONS
Introduction
It is beyond dispute that China has established itself as a force to be reckoned with in the current global economy. There is unmistakable evidence that China has established itself as an economically significant country in the world in recent years, earning the designation of the “world’s emerging giant among emerging economies” (Korukonda, 2007). This is reflected in the influx of economic activities from various foreign investors who are drawn to the existence of a market for their goods and services in the country with a population of over 1 billion.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Summary
This research explores the presently thriving China-Nigeria bilateral economic relations. Consequently, it highlights the associated implications, benefits and challenges, problems and prospects of Sino-Nigeria economic and trade relation. The China-Nigeria relations as shown covered different facets of the Nigerian economy. The recent resurgence in the relationship has been attributed to improve and deliberate mutual efforts at the highest political levels. Chinese FDI inflows to Nigeria have been on the increase in recent years. A ten-fold increase in the flow of Chinese into Nigeria between 2002 till date is obvious.
However, chapter one introduces the topic, statement of the problem, objectives and significance of the study. Thus, some research objectives were drawn in order to answer the research questions. chapter two consist of theoretical framework and literatures reviews, chapter three gives general background of the study tracing Nigeria‘s bilateral and diplomatic relations with China and analyze Nigeria- Chinese economic and trade relations and the reasons behind Nigeria‘s shift of policy to China, four focuses on problems, challenges and prospects of Nigeria- Chinese economic and trade relations, five contained summary, conclusion and recommendations.
Conclusion
The following noteworthy conclusions are made. The relationship between the two countries have huge current and potential benefits to both countries and Africa as a continent as it further creates more favourable environment for business ties between China, Nigeria and West Africa at large. However, it is important that China‘s seemingly elitist approach in its relationship with Nigeria be redefined to encompass all i.e. both the leaders and the citizenry to ensure lasting and hitch-free relationship. According to Humphrey Pole-Pole, this will be better implemented as ―win win-win‖ strategy in which case it apportions a win for China, a win for African governments and a win for African people to sustain the economic pacts. (Bello, 2007)
While the possibilities certainly exist for Nigeria to derive higher value from China‘s growing influence, Nigerians have not fully capitalized on the potential benefits. Far more needs to be done to expand policy creation, institution building, human capital, entrepreneurship, and the culture and leadership capabilities to maximize gains. Most importantly, Nigeria needs to develop a comprehensive strategy to more effectively balance the engagement of China and the West to leverage its own strength and create a plan for sustainable development that resonates with its citizens.
Recommendations
Nigeria must continue to build, maintain and embrace a mutually trusting and respectful alliance with China. The partnership will continue to pave the way for structural engagements to the greatest extent between the two countries (Marchi, 2008). Both Nigerian and Chinese foreign policy should represent the full capacity of both nations‘ values and insights. A foreign policy focused on a particular issue, such as trade or human rights, might run the risk of never establishing the kind of relationship in which complex questions can be posed and experiences voiced. A balanced partnership is key, opening the door for meaningful discussion. Concerns and implications must be pursued in proximity with one another and not seen as a matter of either/or (Marchi, 2008,)
With careful research drawn to international best practices, both Nigerian and Chinese officials will demonstrate increased awareness of the challenges accompanied by economic development. They will be forthcoming about finding innovative responses to human rights violations (Marchi, 2008). Further Both Nigerian and Chinese foreign policy makers must be cognizant that though political change has proceeded more slowly than economic development, an understanding of human rights must advance in both nations.
Nigerians should ensure and employ the use of policy instruments at their disposal and in this context, seek in a systematic way the highest possible degree of coherence between trade, economic and development policies, and other polices of both countries with an impact on their trade, agricultural, national security, environment, social and physical infrastructures, in addition to research and technology especially Nigeria state.
The linkages between poverty reduction, development aid, bilateral trade, adjustments and humanitarian policy fields are all fundamental to ensure poverty alleviation for the vulnerable populaces in ethnic communities and locales, Nigerian should acknowledged where economic development policies are discussed in international forums, enabling both nation‘ presence as active participants at the forefront of the international agenda
In addition to the above, an ethnographic comparative study amongst three other oil- rich countries was conducted to examine the trends of Chinese actors in African communities and their overall social integration across the continent (Large, 2008). In order for Nigeria to benefit effectively from its engagement with China, several steps must be taken. Nigeria needs to (a) assemble comprehensive data on the financial, commercial, social and environmental impact of Chinese investments; (b) establish the development goals and set priorities to be identified; (c) articulate strategies on how the priorities will be met; (d) make provisions of institutional arrangements to implement the mechanisms; and (e) ensure that all stakeholders are included, especially the less privileged, in the policy planning phases. If these steps are taken, Nigeria will be able to (a) attract Chinese foreign investment, which in return will significantly reduce its capital deficit; (b) invest in its infrastructure sector with attention placed primarily on transportation, energy, and agriculture; (c) ensure a major increase in the competitiveness of their goods and value added towards natural minerals produced in their country (Ampiah & Naidu, 2008)
Finally, there is a need for Nigeria to diversify exports to China and other developed nations by increasing exports value added through moving from exportation of pure raw materials to processing (Wang and Bio-Tchane, 2007). This is considered imperative to accelerate technological development in Nigeria. Invariably, avoidance of unequal partnership is strategic to Nigeria in the bilateral agreement, and opportunity to explore the special tariff (Special Preferential Tariff Treatment – SPTT) on African exports recently introduced by Chinese government with processed and manufactured products rather than pure raw materials alone. Thus, while Nigeria will enjoy sustainable and profitable economic relationship with China by increasing the value-added of its exported mineral resources to China as suggested, it is equally relevant for it to effectively manage the importation of Chinese products to avoid ‗killing‘ growing local infant industries that dominate the small and medium scale sector in the Nigeria. This is especially so, as there is a view among many Africans that the uncontrolled influx of China‘s products undermines job markets in Africa.
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