CHINESE INVESTMENT AND ITS IMPLICATIONS FOR NIGERIA’S ECONOMIC SECURITY

Abstract

In spite of functional bilateral relations existing between Nigeria and China, the benefits accrued by each country through their socio-economic interaction have attracted debate, resentment and critique among Nigerians. Concerns have been raised over presumed negative impact of Chinese investments on Nigeria’s fragile economy through the dumping of inferior Chinese industrial products in the country and lack of technology transfer from China to Nigeria. Some scholars argued that there are fewer opportunities for the survival of Nigeria investments in China, because of the employment and visa restrictions many Nigerians face to explore business opportunities in China. This study examined China’s investment profile in Nigeria and its implications for the latter’s economic security. Specifically, the paper traced the background of the Nigeria-China relations and investigated the main thrusts and strategic importance of the relationship. The study also identified the key sectors of Chinese investments in the Nigerian Economy and discussed the implications of Nigeria-China bilateral relations for the economic survival of Nigeria. The study is anchored on descriptive research methodology, consisting of qualitative data, which relied primarily on the existing literature. Findings from the paper were that Nigeria and China have benefitted from their diplomatic relations but the relationship is not mutually rewarding having been tilted towards China. The unequal relationship between the two countries has increased the dependency of the Nigerian economy on China and undermined its economic security. Findings also
revealed that China is a global model of rapid socio-economic transformation that Nigeria could study to optimize the performance of its economy. The study concluded that for Nigeria to benefit optimally from its competitive economic relations with China, the country need to build its internal productive capacity through regular training of its workforce. The Nigerian government should also ban the importation of substandard goods from China.