CHINA’S FOREIGN DIRECT INVESTMENT IN NIGERIA: A STRATEGIC MOVE FOR NIGERIA OR A DISASTER WAITING TO HAPPEN?

Abstract

‘Made in China’ is a label printed on many products that enter the Nigerian market. Imports from China account for a significant 27% of Nigeria’s total imports. Between January 2018 and September 2021, Nigeria imported goods worth over 19.12 trillion naira from China. Meanwhile, Nigeria exported only N2.09 trillion worth of commodities to China, resulting in a trade deficit of N17.03 trillion. As China continues to deeply embed itself in Nigeria’s economy, its benefits grow exponentially. Nigeria remains mostly a recipient, having shifted its relations from the West to China. Can Nigeria truly claim it has experienced a major growth surge? This paper examines China-Nigeria relations to evaluate whether partnering with China is sensible. While China has undertaken major projects in Nigeria—including roads, railways, China towns, and free trade zones—these relations are still unequal and heavily favour Nigeria. The paper concludes that China-Nigeria relations are not solely responsible for Nigeria’s economic struggles. Instead, mismanagement of funds, weak compliance systems, poor governance, and administrative shortcomings are driving Nigeria’s economic downturn and losses. It is recommended that Nigeria strengthen its relationship with China through skills transfer agreements, enabling locals to be trained in advanced skills to boost Nigeria’s manufacturing sector. If the Nigerian government listens to the calls from academics, economists, and social analysts to rethink its strategy with China, it might prevent Nigeria from being branded too soon with the label - ‘Made in China’.