Challenges and Prospects in Nigeria-China Relations

• Published in: African renaissance Vol. 2023; no. si1; pp. 171 - 189
• Main Authors: Adekeye, Joseph Adeshola, Adeyemi, Oluwatobi O, Mashau, Pfano
• Format: Journal Article
• Language: English
• Published: Sabinet Online 01.10.2023
• Subjects: International trade
• ISSN: 1744-2532
• DOI: 10.31920/2516-5305/2023/sin1a8

Efforts by scholars to come up with a generally accepte opinion on whether Nigeria or China is a major beneficiary of trade relations have been the subject of controversy. Pro-western scholars were of a view that China has a higher comparative advantage over Nigeria, while others were of contrary opinion. Therefore, this paper examines Nigeria-China economic relations during the Fourth Republic. The major objective of the study is to examine the challenges and prospects of bilateral relations between the two countries. Methodologically, the study adopted a qualitative technique for obtaining relevant materials through the content analysis of documents such as the Memorandum of Understanding (MoU) between Nigeria and China, annual budgetary allocations, and national dailies. The paper concludes that trade relations between Nigeria and China during the period under review were beneficial to the two countries to some extent, both economically and politically. However, China has a higher comparative advantage over Nigeria. This is so because China focuses on the exchange of secondary products for Nigeria’s primary products. The high disparities in the value trade relations resulted into the collapse of most local industries, underemployment, capital flight, and a vicious circle of poverty in Nigeria. Therefore, the paper recommends the revival of collapsed local industries through the transfer of technology from China. This will further encourage improved employment generation, poverty reduction, and skill acquisition for Nigerian citizens.