Africa -China Review Africa -China Cooperation and Transformation
Published: April 10,2024
By Staff writer
The Lagos Rail Mass Transit Blue Line, electric railway built by Chinese company
Nigeria and the People’s Republic of China established formal diplomatic relations on February 10, 1971. In recent years, the economic and trade cooperation between the two countries has been deepening, and China and Nigeria have built nice cooperation mechanism, broad cooperation platforms. According to statistics from the Chinese Customs Authority, thevolume of bilateral trade between Nigeria and China stood at $22.6bn in 2023. China maintained its position as the top global trading partner and Nigeria stands as the third-largest trading partner for China in Africa.
In an era marked by globalization and interconnectedness, bilateral cooperation between nations has become increasingly crucial for sustainable development and prosperity. Among the many partnerships that have emerged, the relationship between China and Nigeria stands out as a beacon of collaboration, offering mutual benefits to both countries. From infrastructure development to trade and investment, the synergy between these two nations has the potential to drive economic growth, foster technological advancement, and improve the well-being of their citizens.
Both China and Nigeria share a vision for progress and development. China, is the second largest economy in the world after the US, possesses vast resources, technological expertise, and a robust industrial base. China is the China is the “World’s Factory” since 2009, has been the largest global exporter of goods in the world. Nigeria, on the other hand, boasts abundant natural resources, a large and youthful population, and a strategic geographical location in West Africa. By leveraging their respective strengths, both countries have embarked on a journey of cooperation that transcends mere economic transactions to encompass strategic partnerships in various sectors.
Infrastructure development stands as a cornerstone of China-Nigeria cooperation. Over the years, China has played a pivotal role in the construction of critical infrastructure projects in Nigeria, ranging from roads and bridges to railways and airports. Major projects constructed by Chinese companies such as; Lekki Deep Sea Port, Zungeru Hydroelectric project, Lagos-Ibadan train route, Abuja-Kaduna rail line, Abuja-Keffi-Lafia-Makurdi road dualisation, as well as several airport terminals, undertaken by Chinese enterprises, have been complete. Today, Lagos boasts of the Rail Mass Transit Blue Line which is the first electrified rail road and cross sea light rail in West Africa and has offered nearly a million passengers with green safe and speedy ride for the last 7 months.
China’s expertise in energy infrastructure has been instrumental in addressing Nigeria’s power generation challenges. Through investments in oil and gas exploration and the development of renewable energy sources, China has contributed to Nigeria’s efforts to diversify its energy mix and improve access to electricity for its citizens. For example, in January this year, Mainstream Energy Solution Ltd said its subsidiary Penstock Energy Ltd started operating a new 700 megawatts plant in Zungeru central Nigeria which has been built with a $1.3 billion loan from China. The partnership between the two countries in this sector has the potential to drive sustainable development and mitigate the adverse effects of climate change.
Chinese investment in Nigeria spans various sectors of the economy, including manufacturing, telecommunications, and services. Chinese companies have established a presence in Nigeria, creating job opportunities, transferring technology, and contributing to the transfer of skills and knowledge. In 2021, about201.67 million U.S dollars’ worth of direct investments from China had been made in Nigeria. This influx of investment capital has the potential to stimulate economic growth, boost productivity, and foster entrepreneurship in Nigeria.
China-Nigeria cooperation extends beyond economic realms to encompass cultural and educational exchanges. The Confucius Institute, a Chinese language and cultural center, has established a presence in Nigeria, promoting mutual understanding and cultural appreciation between the two nations. Hundreds of Nigerian students receive scholarships every year to study in Chinese universities and gain expertise in various fields in China. In 2021, a total of over 7000 Nigerian students were studying in China which further enhances bilateral ties and people to people exchange.
The Belt and Road Initiative (BRI), China’s ambitious infrastructure and connectivity project, presents new opportunities for cooperation between China and Nigeria. As a major player in Africa, Nigeria stands to benefit from increased connectivity and investment under the BRI, which aims to enhance trade, infrastructure, and people-to-people exchanges along the ancient Silk Road routes.
In 2023, China’s President Xi Jinping pledged to increase investments in Nigeria’s power generationsector and its digital economy. Subsequently, Nigeria’s National Agency for Science and Engineering Infrastructure (NASENI) and three Chinese partners signed contracts for new projects valued at $2 billion, while another $4 billion worth of letters of intent was received for new projects and investments in different sectors of the economy.
The partnership between China and Nigeria holds immense potential for fostering economic growth, promoting technological innovation, and improving the well-being of their citizens. By leveraging their respective strengths and working together in a spirit of mutual respect and cooperation, both countries can overcome challenges, seize opportunities, and build acommunity with a shared brighter future for the peopleof China and Nigeria. As China and Nigeria continue to deepen their ties, they are poised to set an example for South-South cooperation and contribute to global efforts towards sustainable development and prosperity.
