
(ISSN 0850–7902)
Nigeria-China Economic Relations
Under the South-South Cooperation
Samuel Onuoha Udeala*

Abstract
The defining
characteristic of the South-South solidarity is cooperation among the member
countries of the South. The original vision was for member countries to promote
trade as well as to demonstrate, through practical examples, how commercially
viable projects can be implemented using the technology, experience and capital
from the South. Regrettably, these dreams still remain unfulfilled. The
experience gained by the developing countries after several years of bilateral interaction
with the North underscores the idea that South-South trade should be
symmetrical. However the most discernible pattern in the South-South
relationship is still asymmetrical. A case in point is the Nigeria-China
relations which appear to be in great disequilibrium and to China’s advantage.
As
the bilateral relations have progressed from cultural linkages to intense
economic penetration of the Nigerian economy, observers of Nigeria’s
international relations have become highly conscious of the reciprocal need to
transform this intensive relationship into a mutually constructive one, that
is towards the promotion of a more
symmetrical relationship. This article, using dependency approach, demonstrates
that these disparities actually account for the sharp differences in the
outcomes of the bilateral trade and the level of development in the two
countries. It also draws some vital lessons not only for Nigeria but also

* Department
of Political & Administrative Studies, University of Port Harcourt,
Nigeria.
Email: samudeala@yahoo.com
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for other
sub-Saharan African countries to learn from China in terms of the approach to
economic reforms and development experience. The study seeks also to identify
the crucial aspects of Nigeria-China bilateral interactions, assess the
receptivity to the Chinese penetration of the Nigerian economy and the changing
perspectives on the viability of the bilateral relations.
Résumé
La caractéristique qui définit la
solidarité Sud-Sud est la coopération entre les pays membres du Sud. La vision
originale était que les pays membres promeuvent le commerce, et démontrent par
des exemples pratiques comment des projets commercialement viables peuvent être
mis en œuvre en utilisant la technologie, l’expérience et les capitaux du Sud.
Malheureusement, ces rêves ne se sont toujours pas réalisés. L’expérience
acquise par les pays en développement, après plusieurs années d’interactions
bilatérales avec le Nord, met en évidence l’idée que le commerce Sud-Sud doit
être symétrique. Or, le modèle le plus perceptible dans les relations Sud-Sud
est toujours asymétrique. A titre d’exemple, on peut citer les relations
sino-nigérianes qui paraissent très déséquilibrées à l’avantage de la Chine.
Alors que les relations bilatérales sont passées de liens culturels à une
intense pénétration de l’économie nigériane, les observateurs des relations
internationales du Nigeria ont pris pleinement conscience de la nécessité réciproque
de transformer cette intense relation en une relation mutuellement constructive
et axée davantage sur la symétrie. En utilisant l’approche de la dépendance, le
présent article démontre que ces disparités expliquent effectivement les
différences nettes des résultats des échanges bilatéraux et du niveau de
développement des deux pays. Il tire aussi des leçons capitales de la Chine non
seulement pour le Nigeria, mais aussi pour d’autres pays d’Afrique
subsaharienne en termes d’approche des réformes économiques et d’expérience du
développement.
L’étude cherche en outre à
identifier les aspects essentiels des interactions bilatérales sino-nigérianes,
à évaluer la réceptivité de l’économie nigériane à la pénétration chinoise, et
les perspectives changeantes de la viabilité des relations bilatérales.
Background to the Study
Nigeria and China established formal
diplomatic ties on 10 February 1971 with an understanding to abide by a set of
five principles, namely mutual respect for each other’s sovereignty and
territorial integrity, mutual non-ag-
63
gression, non-interference in each other’s
internal affairs, sovereign equality, and peaceful co-existence (Musa 2007:6).
Nigeria’s establishment of diplomatic ties with China was in furtherance of efforts to promote and strengthen the objectives of the
South-South Cooperation which, among other things, aimed at promoting cooperation among countries of the Southern Hemisphere in a
wide range of areas such as trade, investment, technical cooperation,
industrialisation, energy, food and agriculture, and technology (Eze 1986:165).
The formal history of South-South Cooperation is tied up
with the activities of the Non-Aligned Movement (NAM) which was established in
1945-55. The initial focus was neutrality from the Cold War politics between
the Western and Eastern blocs (Onimode 1995:222; Ojo1981:28). The defining
characteristic of the South- South solidarity is cooperation among the member
countries of the South. The original vision was for member countries to promote
trade as well as to demonstrate, through practical examples, how commercially
viable projects can be implemented using the technology, experience and capital
from the South (Obasanjo 2001:274).
Nigeria and China share a lot in common from ethnic
diversities to rich endowment of mineral and human resources. China is the largest
single market in the world with a population of 1.3 billion, while Nigeria is
the largest single market in Africa with a population of 140 million. Unlike
Nigeria, China has been able to harness its vast demographic, human and
material resources to build a strong and virile domestic economy which has
impacted positively on its citizenry (Agbu 1994:215).
In addition, Nigeria
and China are burdened by destiny in their respective regions. In terms of
population, one of every three Asians is Chinese, so also one in every four
persons in Africa is a Nigerian. With a population of 1.3 billion, China is in
fact the most populous nation in the world. Nigeria on the other hand, with a
population of over 140 million people is the largest concentration of black
people in the world. In terms of mineral resources China, like Nigeria, is well
endowed (Oche et al. 2003:9).
These factors, among other things, predispose Nigeria and
China to play prominent roles in the politics and security of their respective
regions. They also constitute a common ground that should serve as a basis for
nurturing close bilateral relations between the two countries, while fostering
their collaboration in multilateral diplomacy on a wide range of issues of
general international concern (Akinterinwa 1994:136) China, one the fastest
growing economies in the world today, is gradually overwhelming the economies
of Europe and the United States. It is also a strong technological nation with
proven
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expertise in iron ore, steel aluminium, petroleum,
textiles, electronics, fertilisers, transport, toys, etc. The Chinese economic
model, bolstered by the legendary visionary leadership of modern China, has
assisted the once communist nation to become a global power (Xiang 1984:9).
Nigeria, on the other hand, is yet to translate its enormous natural endowment
and demographic strength into economic buoyancy (Akinjide 2005; Bello 2005)
Nigeria’s image of China as well as China’s image of Nigeria played a prominent
role in the initial effort to establish relationship between the two countries.
A country’s image is an important factor in international relations and can
contribute a great deal to the realisation of certain foreign policy goals
(Udeala 2008:254). A state’s activities beyond its borders are motivated by its
self perception and image, and its perceived interests in relation to other
states in the international system (Ogwu 1986:383). Nigerian leaders exposed
during the colonial days to both western tutelage and propaganda were afraid of
communist infiltration and subversion. They consequently believed that their
country’s liberal democratic and capitalist orientation as well as its
independence might be endangered by communism. The Chinese on their part, while
recognising that Nigeria is the most important of all of all the English
colonies in Africa held the view that its leaders were bourgeois reactionaries
or feudalmonarchical nationalists
(Ogunsanwo 1974; Hutchison 1975).
At independence, Nigeria’s political leadership was not only
pro-West but apparently anti-communist. The effect of this disposition was that
Nigeria’s attitude towards communist China followed what had then emerged as a
clear pattern of most of its relations with the then socialist states – that
is, diplomatic isolation accompanied occasionally by bitter attacks against
communist subversive ideology at home (Owoeye 1986:295).
Thus, the establishment of diplomatic ties in February 1971
was appropriate and full of practical implications for both countries. The pattern of bilateral interaction between
Nigeria and China is compressed into mid-level position. Both Nigeria and China
have the West as well as Japan as their major trading partners. Below this
level, they jointly operate their own system of exchange where China has the
advantage of importing advanced industrial materials from the West and
exporting its goods and technology to Nigeria (Bukarambe 2005:248). China and
Nigeria have production structures which are convergent in the West. But the
advantage that China has over Nigeria is that it has since 1979 used its
developmental state and capitalist enclaves of export processing zones at home
to establish a strong industrial base (Egom 2007:4).
Since
the establishment of bilateral diplomatic links, there has been a substantial
expansion in Chinese exports, essentially conditioned by the demands of the
economy and requirements to keep up economic growth. In consonance
65
with this need, China devised economic
policy strategies to penetrate the markets of the South particularly Nigeria
(Moghalu 2007:15). Currently, the Nigeria-China bilateral economic relations
are underpinned by the following agreements:
1. A bilateral
trade agreement, signed on 3 November 1972. This agreementexpired in 1985.
Subsequently; the two countries exchanged a draft bilateral trade agreement
with each other through the diplomatic channel.
2. A Bilateral
agreement on Economic, Scientific and Technical Cooperation.This was first
signed on 12 November 1972 and subsequently renewed on 8 July 1982.
3. Agreement on
Cultural and Educational Cooperation. This was first signed on20 November 1981
and subsequently renewed under the implementation programme of cultural and
educational agreements on 28 March 1990.
4. The May 1997
Agreements include:
(a)
Reciprocal Promotion and Protection of Investments;
(b)
Protocol on Cooperation in Electric Power Project in
Nigeria;
(c)
Protocol on Bilateral Cooperation on Steel Industry;
(d)
Oil Cooperation; and
(e)
Agreement on the establishment of Nigeria Trade Office
in China and the China Investment
Development Commission 22, 2001 (Bukarambe
2005:43).
China’s renewed interest in the Nigerian
economy predated the 1999 inauguration of civilian administration. It was the
Sani Abacha Government that tactically and diplomatically brought the Chinese
closer to Nigeria in 1995 to fill the yawning gap created by the isolation of
the country by the United States and its Western allies as a result of
political crisis. China did not join the
West in criticising Nigeria’s human rights abuses, killings and other
tyrannical measures of the Sani Abacha regime particularly the execution of Mr.
Ken SaroWiwa and other Ogoni environmental activists (Ogunsanwo 200:24). The
period between 1994-1998 witnessed an attempt by the Abacha administration to
cultivate stronger political and economic ties with countries other than
Nigeria’s traditional Western allies. The imbroglio in which Nigeria found
itself with its traditional allies was what compelled the Abacha administration
to develop and strengthen pre-existing ties with some countries on the Asian
continent. This change in the emphasis and focus of Nigeria’s foreign policy is
what a number of scholars referred to as
a ‘policy shift to Asia’ (Oche 1999; Adegbulu 2006). The Chinese took advantage
of the gap created by reduction in the
66
level of trade with Nigeria’s western allies
by quickly filling it. Consequently, the trade figures indicate that Nigeria’s
imports from China increased considerably in 1997 and have kept rising since
then. In 1995, the Nigerian Government signed an agreement with the China Civil
Engineering Construction Corporation (CCECC) for the rehabilitation of the
Nigerian Railways at a cost of US$529 million which included the supply of
coaches (Chibundu 2007; Udeala 2003).
Nigeria-Sino relations enjoyed a steady growth during the
Obasanjo era. President Olusegun Obasanjo visited China twice, first in 1999
and again in 2001 to underscore the importance the Nigerian government attached
to its diplomatic ties with China. As a result of these visits, a number of
trade, economic, technical, scientific, technological and investment protection
agreements were signed by both countries (Ogunsanwo 2007; Abua 2004).
To further consolidate existing bilateral relations between
the two countries, the Chinese President Hu Jintao paid a two-day official
visit to Nigeria starting from 28 April
2006. President Jintao and his
Nigerian host signed a Memorandum of Understanding on petroleum cooperation.
The deal provides for substantial Chinese investment in the Nigerian oil
industry. As part of the agreement, Nigeria granted China four drilling licenses
in exchange for commitments to invest US$4 billion in oil and infrastructural
projects (Ley 2006; Costa 2006).
During President Umaru Musa Yar’ Adua’s visit to China in
February 2008, many financial agreements were also concluded. These include US
$500 million concessionary loan for projects to be identified by Nigeria,
construction of a hospital in Abuja to be facilitated by a US$4.2 million
grant, grant of US$25 million for the construction of the China-Nigeria
Friendship Cultural Centre in Abuja, grant of US$7.2 million for the
construction of four rural schools in Nigeria, placing of balance of
US$2billion loan under public-private sector partnership with insurance cover
to be provided by a Chinese company and Nigeria providing guarantee when
absolutely necessary, and the removal of linkage of oil block to the EXIM bank
facility (Okeke 2008:4).
Since the inception of China’s open door policy in 1978
which involved readjustment, restructuring and consolidation of its national
economy, the urge to modernise has made it necessary for the country to engage
in multiple forms of interaction with its external partners, western
industrialised nations and, to some extent, countries of the South. With the
end of the Cold War that witnessed the disintegration of Soviet Union and the replacement of state communism as the
mode of economic organisation as well as the upsurge of liberal democratic
values and ethos all over the world,
China emerged as one
67
of economic powers in the current multi-polar power configuration
(Breslin 2009:817). The New World Order that saw the triumph of capitalist
ideology made it imperative for China to
adopt capitalist strategies and manoeuvring in its economic relations with
the developing countries, hence concepts such as asymmetry, unequal exchange,
imperialism, dependency associated with NorthSouth economic relations are
employed in analysing China’s economic relations with developing
countries. The arguments of this paper are largely theoretically framed on the
dependency approach drawing on works of scholars like Amin, Frank, Emmanuel,
Lenin.
This study has both theoretical and empirical significance.
From a theoretical standpoint, it would advance the frontiers of knowledge,
especially as it relates to the conduct of Nigeria’s external economic
relations. Theoretically, the research enriches the available theories and
knowledge on matters relating to Nigeria-China bilateral relations, especially
since Nigeria returned to democratic rule in 1999. It adds to existing
knowledge on Nigeria’s foreign economic relations and indicates the nature of
her relationship with China under the configuration of South-South Cooperation.
In addition, the scholarship upon which this article is based can benefit from
a more robust engagement with the principles and structure of Nigeria’s foreign
policy and economics of post-Cold War international relations, particularly as
it relates to China-Africa relations and the place of Africa in international
affairs.
Nigeria-China relations is a very topical issue, both within
the context of the ‘new’ scramble for Africa, and the reconfiguration of
international relations where Africa now has new options based on the
exploration of South-South solidarity in charting an alternative development
course that is free from dependence on the West.
In effect, there exists a gap in knowledge in bilateral
relations between Nigeria and China. It closes gap in literature by seeking to
promote a deeper understanding of the complex problems of bilateral relations
in the context of rapid economic change in South-South Cooperation.
In summary, this work will be a welcome contribution to the
field not only because it gives the theoretical clarity and critical perspectives
to the theories of unequal exchange but it also throws constructive light on
the contemporary inquiry and insight into the dependency and underdevelopment
in developing countries. The study will hopefully stimulate those interested in
Nigeria-China foreign economic policy and fill a gap in our knowledge of
Chinese involvement in the developing world, particularly in Nigeria.
Empirically,
foreign policy makers, operators of the public and private sectors of the
Nigerian economy, the academia, and the general public alike, will benefit from
the study. In all, the work is a valuable input to the understanding
68
of the present-day problems facing bilateral
relations in Nigeria. Given the wide-ranging issues this study addresses, it
would be an enriching and inspiring volume for most readers.
Against this background, this study which examines
critically the Sino-Nigeria economic relations under the configuration of
South-South Cooperation, particularly since Nigeria returned to democracy in
1999, makes recommendations on how
bilateral relations can be fine-tuned to ensure that the unequal trade
relations deal which is to China’s advantage is balanced in favour of both
countries. However, the paper argues that there is the need to reinvigorate and
refocus strategy for South-South cooperation. The members should encourage
investment across the borders of the countries of the South. Both Nigeria and
China must rededicate themselves to exploiting the comparative advantages and
complementarities inherent in their respective economies, and adapting new and
innovative approaches in pursuing this objective. Nigeria can understudy the
leadership of the Chinese Government over the years and imbibe those policies
that have helped it to identify the way China should go and consequently lead
the people accordingly.
Africa and a Rising China
China’s relations with Africa have become
the subject of much speculation and controversy in recent years. Much of the
debate has been about the fact that Sino-African relations bring into focus,
particularly for the industrialised powers, the emergence of a competitor for
the continent’s vast natural resources (Naidu, Davies 2006). China’s
contemporary relations with Africa are driven by four factors. These are:
resource security; the need for new markets and investment opportunities;
symbolic diplomacy, development assistance and co-operation; and forging
strategic partnerships. But this description of the drivers of China’s
engagement with the continent does not adequately explain the underlying
strategic vision of the Chinese vis-à-vis Africa (Alden 2005). China’s interest
in Africa is not new. In the 1960s and 1970s, China’s interest centred on
building ideological solidarity with other underdeveloped nations to advance
Chinese-style of communism and repel Western ‘imperialism’ (Ogunsanwo 1974).
During the Cold War, Chinese interests evolved into more pragmatic pursuits
such as trade, investment and energy. In recent years, China has identified the
African continent as an area of significant economic and strategic interest
(Taylor 2007; Melber 2007).
America and its allies and friends have since discovered
that their vision of a prosperous Africa governed by democracies that respect
human rights and the rule of law, as well as embrace free markets, is being
challenged by the
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escalating Chinese influence in Africa. For
the past decade, the Chinese economy has been expanding at a nearly
double-digit annual growth rate. This rapid expansion requires enormous
resources, especially energy. China’s rising domestic energy demand, combined
with declining domestic petroleum production and insufficient coal output, has
spurred the country to pursue stable overseas sources of hydrocarbon fuels.
In recent years, with rapid economic development of both
China and Africa, the interaction between the two sides, which used to centre
on political spheres, is featuring cooperation in various areas including the
economic field. Building upon historical experiences, the two sides have
translated the political gains into economic advantage with increasing Chinese
investments of capital and technology in Africa, which help unlock the Africa’s
vast resources and potentials (Musa 2007:5). China is rapidly becoming one of
Africa’s main sources of investment. By the end of 2005, China had established
more than 800 enterprises in Africa involving a total commitment of US$6
billion; it had signed investment agreements with 28 African countries and its
engineering projects covered construction, petrochemical, power, culture,
education, health and food processing sectors (Ogunsanwo 2007).
After several centuries of being strikingly inward-looking,
China is today expanding in search of relationships that will help underpin its
capitalist wealth. Previously led for centuries by monarchic dynasties, China
established as a communist nation, the Peoples Republic of China in 1949, after
the Chinese civil war in which the communist led by Mao Zedong chased out the
previous nationalist government out of China’s mainland to Taiwan. The Chinese
had broken ranks with the communist Soviet Government and had begun to position
itself as another Socialist superpower. The country became a nuclear power in
1964, however, it was its admission to the United Nations in 1971 and its seat
as one of the permanent members of the Security Council that brought communist
China into full reckoning as a global power (Bukarambe 2005).
With the death of Mao, communist China’s founding father in
1976, Deng Xiaoping emerged as the official leader of China. Deng promptly
began an economic reform programme that was to lead China’s status today as a
rising economic power. Thus, China has one of the fastest growing economies in
the world today. It has US$1.3 trillion in foreign reserves, making it the
highest reserve in the world today. It is predicted that it may become the
highest economy by the end of the 21st century, overtaking the United States
and Japan. The present economic status of China has created a fundamental shift
in the global strategic power balance (Moghalu 2007:65).
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China is also strengthening and deepening diplomatic ties
with other African countries, state-owned companies have been investing heavily
in agriculture, fisheries and related production facilities in Gabon, Namibia,
Zimbabwe, Zambia, and Tanzania. Chinese construction firms, supported by the
state apparatus and low-cost but effective Chinese labour, have been able to
outbid contractors from other parts of the world and winning substantial
contracts in African construction sector. They have been building roads in
Ethiopia, railway lines in Angola, Stadia in Mali and Djibouti as well as
government offices in Mozambique and Uganda. Even in Nigeria, they constructed
the headquarters of Nigeria Communications Commission (NCC) and the new office
of the Accountant General of the Federation. China has recently broken
long-standing protocols and has provided peace keeping troops to Liberia and
Democratic Republic of Congo. Its donations to UN operations in Africa have
increased substantially and has provided humanitarian assistance to combat
drought in the horn of Africa and recently to Darfur (Musa 2007:5).
China’s interests in Nigeria and Africa at large are two
folds: First is diplomatic and second economic. The Chinese people will not
forget that it was due to strong support of vast number of developing countries
including Africa that China successfully regained its lawful seat in the United
Nation Security Council in 1971. Nigeria was in the forefront of the support
for China right from the beginning. Nigeria voted in the United Nations General
Assembly in support of China’s admission to the United Nations. That was Nigeria’s
debut at the United Nations General Assembly with Mallam Aminu Kano
representing Nigeria.
The Second is Nigeria’s oil and gas which China desperately
needs to sustain its 10 per cent annual economic growth. Africa now supplies 25
per cent of China’s oil import. China is more acceptable in Africa partly
because it is viewed with more credibility than Western Nations with their
imperialist legacies (Akinjide 2005:18) As noted, China’s main interest in
economic front lines is securing supply lines for oil and minerals. China has
only 2.3 per cent of the world’s oil reserves and even less of gas (1%).
Meanwhile, it consumes 6.7 million barrels per day, which is the second largest
consumption after the United States. China thus relies on Africa for about one
third of its oil supplies.
China has no doubt, identified Africa as an important
strategic partner not only for economic growth but also in its quest to
establish itself as a major global power. This is evident in the tours the
Chinese President Hu Jintao undertook to African countries in quick succession
in 2004, 2006 and 2007, where he signed a lot of agreements.
The third China-African Cooperation Summit held in Beijing
in November 2006 drew 46 African leaders and was given global prominence. The
meeting
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was a pointer to several aspects of
Sino-African dynamism. The summit approved a three-year action plan to create a
new ‘strategic partnership’ between China and Africa based on equality and
mutual benefit. The plan included a doubling of aid to Africa. The Sino-African
summit grabbed the headlines of the global media for obvious reasons, the West,
especially America, which dominates the global media is concerned that China
with its vibrant economy and 1.3 billion people may easily overtake them (the
West) as a model of economic development. The West is also concerned that
China, along with India, may soon become a more attractive destination for
Africa’s raw materials and primary products and in general supersede the West
as the continent’s biggest trading partner (Haruna 2006:18).
Concept of Unequal Economic Relationship
and Dependency
The arguments of the paper are largely
theoretically framed on dependency approach, drawing on the works of scholars
like Amin, Frank, Emmanuel, Lenin, Hobson and others. Dependency theory has
been the directing light in Latin America and, indeed, the developing countries
as well as major opposition to the modernisation theory. Basically, the
dependency approach is a general analysis of the process of capitalist development
of these peripheral economies and the characteristic mode of analysis has been
to focus on the relationship between internal and external structures, with
emphasis on the asymmetric interplay depicted in many different ways. A common
strand in these ways is the identification, recognition and acceptance of
imperialism as the principal adversary (Ndu 1999).
Dependency theorists (Frank 1976; Sunkel 1979; Furtado 1964;
Dos Santos 1970; Emmanuel 1972; Ake 1981; Onimode 1982), argue that the
dependence of the South on the North is the main cause of the underdevelopment
of the former. They hold that the present economic and socio-political
conditions prevailing in the periphery are the result of a historical
international process. This development emerged as a global historical
phenomenon consequent on the formation, expansion, and consolidation of
capitalist system, known as dependent capitalism. At the first level, many countries in the
periphery have been incorporated into the world economy since the early days of
capitalism. At the second level, many countries have become capitalist
economies through incorporation into the world economy. At the third level, the
world economy has led to metropolis-satellite chain in which the surplus
generated at each level in the periphery is successively drawn off the centre
as a result, the periphery is impoverished and the centre is enriched (Jhingan
1966:330).
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Baran (1957) argues that the advanced capitalist countries
of today had managed accumulation of capital by exploiting the colonial
territories. Similarly (Frank 1967), maintains
that national capitalism and national bourgeoisie, unlike their
counterparts in the advanced capitalist countries cannot promote development in
Latin America. In Western countries, capitalism played a different role because
it was rooted in imperialism. Frank advances a centreperiphery model to
enunciate the role of imperialism. He likens metropolis to centre and satellite
to periphery. They are linked in such a way that the development of the centre
leads to corresponding underdevelopment in the periphery. This relationship
continued even when the satellites had gained political independence. Frank
suggests that the way to stop underdevelopment of the new nations is to delink
them ‘from the capitalist economies’. Nkrumah (1971) argues that states that
rely heavily on foreign countries is in theory independent and has all the
outward trappings of international sovereignty. In reality its economic system
and political policies are directed from outside. According to Mac-Ogonor
(1999), flag independence in the developing countries could not break the yoke
of economic dependence on colonial countries. The result of this heavy reliance
on colonial institutions is that foreign capital is used for exploitation
rather than development of the developing countries.
The theory of unequal exchange advanced by Classical Marxist
scholars is used to explain the unequal economic relations between a developing
economy like Nigeria and a developed economy like China. The theory of unequal
exchange in the sphere of international trade between developed and
underdeveloped countries asserts that the developed countries get higher value
of the labour inputs of their products (because they use superior technology and
produce at a large scale) whereas the developing countries get lower value of
the labour inputs of their products (because they use inferior technology and
produce at a small scale).
Emmanuel (1970:10) propounded the theory of unequal exchange
in international trade between the centre (Developed Countries (DCs) and the
Less Developed Countries LCDs) which has led to the exploitation of the latter
by the former. According to Emmanuel unequal exchange (relationship) occurs
when two unequal countries produce two different commodities so that they are
not in direct competition with each other. Since wages are low in LCDs, the
cost of production is also low, and so is its price. On the other hand, wages
being higher in DC, the cost of production of commodity is high, so is its
price. Thus, the commodity of LCDs being cheaper than that of DCs, engenders
unequal exchange in trade between the two.
Emmanuel’s theory of unequal exchange is in tandem with such
other classical writers on imperialism as Hobson, Lenin and Schumpeter who
assert
73
that the impetus for imperialism comes from
economic interests related to the process of capitalist accumulation.
Emmanuel’s theory is based on Marx’s theory of ‘prices of production’ for the
determination of international prices and technological changes in production.
He believes that the main reason for economic inequality between the South and
the North lies in the differences in techniques of production and difference in
wages which lead to unequal exchange in trade.
The relevance of the dependency theory and, to a large
extent, the development theory to this study is that the defining features of
the developing countries are their dependency and underdevelopment, which
derive from the unequal manner in which they have been incorporated into the
periphery of world capitalism. The relationship between periphery and the
centre is sustained and perpetuated through certain structures, agencies and
institutions. Since dependency is an organic feature of world capitalism,
whenever there is a general crisis it spreads to its peripheries with varying
degrees of intensity, depending on the extent of control the capitalists have
over the peripheral economies (Mac-Ogonor 1999; Badejo 1990).
Focusing on Nigeria’s bilateral economic relations,
dependency theory enables scholars explore how Nigerian leaders should
consciously and effectively use the nation’s foreign policy to construct a
self-reliant and just society. The failure of the leadership to conduct foreign
policy for economic development and the inappropriate development path pursued
by them in the past are blamed for the country’s continued state of dependence
and underdevelopment.
Contending Discourse on Nigeria-China Bilateral Relations
In contemporary international relations,
trade cannot be realistically divorced from politics. Nigeria’s bilateral
relations with China have gradually become an issue of domestic concern as
Nigerians have become aware of lack of balanced trade. It has been observed,
that this situation has led to a great economic disequilibrium and to China’s advantage.
This signifies that the economic advantage has gone to China, regardless of
increased trade volume between the two countries (Onwubiko 2006:43).
The expansion of Nigeria’s economic interactions with China
is constrained by a number of factors. These include the imbalance in the
structure of level of their trade, the inadequacy of the industrial
infrastructure for promotion of relations, the incidence of flooding of the
Nigerian market with substandard goods from China and inability to implement
various bilateral agreements between the two countries among other problems.
The trade between Nigeria and China has largely followed a
classical pattern of trade disequilibrium between the developing and the
developed econo-
74
mies (Jumbo 2007:56). The structure of trade
between Nigeria and China reflects the difference in the level of development
of the two partners as well as high degree of complementarities that exist
between their economies.
While Nigeria’s
exports to China consist mainly of primary commodities, its imports from that
country are made up of largely of industrial goods. Within this commodity
groups, there have been some important changes in the structure of trade over
the years (Soludo 2006; Agbu 1994).
Since the establishment of bilateral diplomatic links, there
has been a substantial expansion in Chinese exports, essentially conditioned by
the demands of the economy and requirements to keep up economic growth. In
consonance with this need, China devised economic policy strategies to
penetrate the markets of the South. China’s rapidly expanding industrial base
has provided impetus for its expanded economic penetration of Nigeria, a
relatively large market with immense purchasing power.
Over the years, Nigeria has served as market outlet for
Chinese products (Michael 2006:17). The immediate problem posed for Nigeria is
the negative role which the big Chinese companies have played and are likely to
continue to play in Nigeria and Africa, and its consequences for the fulfilment
of the aspirations and goals of the Nigerian people (Olisa 2006:24).
Nigeria’s bilateral trade relationship with China after
several years shows that the most discernible pattern in this bilateral
relationship is still lopsided. It is observed from the trade data that this
unequal economic relation is in great disequilibrium and to China’s advantage.
It means that despite the increase in trade volume between the two countries,
the bilateral economic relations have favoured China, thus creating a feeling of lopsided distribution
of the benefits from the bilateral trade (Bukarambe 2005).
Crude oil has replaced agricultural commodities as Nigeria’s
dominant export to China, while there has been a shift of emphasis in Nigeria’s
imports from that country from consumer products to capital and investment
goods. Thus, Nigeria’s exports to China consist mainly of primary commodities
while manufactured goods constitute the bulk of its imports from China. In
fact, Nigeria’s strength lies on the production of crude oil which alone
accounts for over 90 per cent of its foreign earnings (Michael 2006).
Since 1971, when diplomatic relations were established with
China, the volume of trade has increased significantly (Akinjide 2005). For
example, trade figures from the Federal Office of Statistics (FOS) now Federal
Bureau of Statistics and the Central Bank of Nigeria (CBN) between 1999 and
2008 shows the level of trade volume between the two countries. Nigeria’s
imports which were N39, 890,423,259 million in 1999 increased to N502,
302,250,4.8 million in 2008. As a result of the considerable growth of its
trade with China,
75
Nigeria has become one of China's largest
Africa trading partners. Similarly, Chinese imports from Nigeria increased from
N10,671,356.489 billion in 1999 to N31,353,471,339 billion in
2008 (FOS, CBN 1999-2OO8).
The main problem in Nigeria’s trade with China, as indicated
in the Tables 1-3, is its asymmetry and one-sidedness. For example, in Table 1,
from 1999 to 2008, Nigeria recorded a deficit in its trade with China every
year. Between 1999 and 2008, the cumulative deficit sustained by Nigeria in the
trade with China was put at N198,594,804,890 (FOS, CBN 1999-2OO8). While
the cumulative amount of Nigeria’s imports from China was N229,678,601,6089
billion, China’s imports from Nigeria totalled N31,083.796,7188.489
Million within the period under review. The years 2003, 2006, 2007 and 2008 are
noteworthy for the relatively large size of deficit Nigeria recorded. For
example, in 2007, the trade deficit stood at a staggering record level of N515,322,082,120.
To some extent, the pressures on Nigeria’s balance of payments since 1999 can
be attributed to the imbalance in the trade with China and other developed
countries. Nigeria’s export to China is largely characterised by the structural
imbalance which afflicts the overall export trade that is excessively
concentrated on crude petroleum (FOS, CBN 1999-2OO8).
Table 2 shows the country’s oil export to China. The cumulative barrels of oil exported to
China were put at 70,572,912 million which amounted to N37,124,69
billion between 1999 and 2008. Similarly in Table 3, which covers the same
period under review, the cumulative
quantity of non-oil export to China was N1,591,411.92 which was 0.81 per
cent of the total revenue realised by the country during this period (FOS, CBN
1999-2OO8).
Over the years, while the broad commodity profile of
Nigeria’s exports to China remained virtually unaltered, being consistently
dominated by primary commodities, there have been some significant changes in
the relative importance of the individual products.
Experience has shown that bilateral relations between the
two unequal partners invariably end up to the overall disadvantage of the
weaker party, in this case, Nigeria. One effective approach of addressing the
trade imbalance is a cooperative mechanism that would enable Nigeria to
increase her export of manufactured goods to China. There is no doubt that the
persistence and the intractability of the challenges which confront the two
countries in addressing the problem of trade imbalance have not been the dearth
of sound economic ideas or policy initiations, rather what has been seriously
lacking is the political will and resolve to implement these agreements. In
order to achieve these goals, there is need for faithful implementation of all
outstanding bilateral agreements between the two countries, particularly
agreements on investment protection and promotion, avoidance of double taxation
and general
76
economic agreement in the area of oil, gas
and solid minerals in their respective economies.
The consequence of intensive asymmetric bilateral
interaction to the achievement of Nigeria’s broader national goal should not be
glossed over by the Nigerian policy makers as such relationship could be
jeopardised if one-sided economic relation continues. A continuation of this
pattern of lopsided relationship might have serious repercussions for Nigeria.
The intensification of dependent relationship can provide an enormous advantage
to China in continuation of its economic and industrial expansion.
Table 1: Nigeria-China Bilateral Trade, 1999-2008
Year
|
Exports (N FOB)
|
Imports (N. CIF)
|
Trade of Balance
|
1999
|
10,671,356.489
|
39,890,423,259
|
- 29,219,066,770
|
2000
|
11,413,354,432
|
46,367,894,115
|
- 34,954,539,680
|
2001
|
14,127,160,262
|
58,595,546,570
|
- 44,468,386,308
|
2002
|
8,812,197,309
|
89,138,079,432
|
- 80,325,882,123
|
2003
|
15,954,209,434
|
137,917,168,694
|
- 121,962,959,260
|
2004
|
70,531,578,270
|
147,913,615,216
|
- 77,382,036,946
|
2005
|
46,742,407,524
|
244,653,672,626
|
- 197,911,265,102
|
2006
|
527,401,740
|
403,319,768,287
|
- 402,792,366,547
|
2007
|
111,365,515,522
|
626,687,597,642
|
- 515,322,082,120
|
2008
|
31,353,471,339
|
502,302,250,248
|
- 470,948,778,909
|
Source: National Bureau of Statistics formerly Federal Office
of Statistics (1999-2008).
N = Naira.
Table 2: Nigeria’s Oil Export to China
Year
|
Quantity
(Thousand of Barrels)
|
Value of (N in Million)
|
1999
|
4,456.7
|
10,511.6
|
2000
|
5,614.3
|
13,241.8
|
2001
|
7,614.7
|
17,960.0
|
2002
|
2,848.9
|
7,107.7
|
2003
|
3,447.2
|
12,941.7
|
2004
|
8,752.5
|
44,670.8
|
2005
|
9,269.0
|
69,923.4
|
2006
|
10,667.8
|
80,475.7
|
2007
|
9,445.6
|
71,255.6
|
2008
8,456.2
43,158.6
|
Source: Compilation from Central Bank of Nigeria (CBN) Annual
Reports and Statement
Account 1999-2008. N = Naira
77
Table 3: Nigeria’s Non-Oil Export to China (Naira in
Million)
Year
|
Quantity
|
% Share of Total
|
1999
|
4,305.79
|
3.4
|
2000
|
4,489.88
|
4.1
|
2001
|
4,751.2
|
5.5
|
2002
|
4,989.72
|
6.9
|
2003
|
178,719.14
|
10.4
|
2004
|
187,307.16
|
10.4
|
2005
|
251,112.32
|
12.0
|
2006
|
285,012.48
|
13.5
|
2007
|
326,054.28
|
14.4
|
2008
|
374,310.31
|
14.8
|
Source: Compilation for Central Bank of Nigeria (CBN) Annual
Reports and Statement Account
1999-2008.
As the bilateral relations have progressed
from cultural linkages to intense economic penetration of the Nigerian economy,
observers of Nigeria’s international relations have become highly conscious of
the reciprocal need to transform this intensive relationship into a mutually
constructive one, that is towards the
promotion of a more symmetrical relationship. It is observed that the
consequence of intensive asymmetric bilateral interaction to the achievement of
Nigeria’s broader national goal has not been given the desired attention by the
Nigerian policy makers given that such relationship could be jeopardised if
one-sided economic relations continue.
A continuation of this pattern of lopsided relationship
might have serious repercussions for Nigeria. The intensification of dependent
relationship can provide an enormous advantage to China in continuation of its
economic and industrial expansion. There is no doubt that issues foreseeable in
the NigeriaChina bilateral relations present formidable challenges. Given the
complexity of the interaction, uncertain domestic setting and the volatile
global environment, unseen situation of friction and opportunities for more
reciprocal relations would likely arise.
78
How Relations Can Lead to Mutual Beneficial Outcomes for Both
Countries There is no doubt that China’s failure to implement many
of the bilateral agreements signed between the two countries has affected the
growth of the economic relations and contributed to imbalance in the trade
volume. In addition, the incidence of flooding of the Nigerian markets with
substandard goods from China has militated against the growth of the bilateral
relations. Development analysts have criticised the Chinese economic drive in
Nigeria and argued that China is far more interested in hoarding national
resources, including oil, which the country is importing from Nigeria and other
African countries than assisting the development processes of these countries
(Echiebiri 2006; Jumbo 2007).
Political economists have also often written about how
Europe and the West underdeveloped Africa. While these allegations are cogent,
given Africa’s unsavoury history of slave trade, colonialism and
neo-colonialism, the growing relations with China raises a spectre which if,
not addressed urgently, might lead future scholars to grumble again, this time
about how the Chinese underdeveloped Africa. The current trend in Sino-Nigeria
relations is laden with strategic cooperation and collaboration as well as
mutual cooperation. But a dispassionate analysis shows that it is mostly one
way traffic of raw materials to China and finished goods to Nigeria, an
equation that replicates a similar one the West has with Africa. We are once more being confined to
consumerism rather than production, which ought to accelerate growth,
development and, therefore, advancement (Azaiki 2006:50). As stated before,
China’s failure to implement some of bilateral agreements signed between the two countries has become a source of concern to Nigeria’s
policy makers. Nigeria certainly has had a history of chequered relations with
China on the Nigerian Railways project
since 1995 when the Sani Abacha administration entered into an agreement to
overhaul its railway system. The Chinese Civil Engineering and Construction
Corporation (CCECC) was awarded US$529 million railway contract by the
Abacha administration to supply rolling
stocks and engines. The Chinese firm did not execute this contract successfully
and nothing has been done today to revamp the rail transport system. In fact,
the Nigeria Railways Corporation is still as moribund as it was when the
contract was signed over fifteen years ago (Udeala 2001).
Similarly, the shoddy execution of Nigeria’s N40
billion satellite project called Nig-ComSat-1 by the Chinese also generated
another controversy (Ezuka 2009). What had appeared in 2006 to be a laudable
effort by government to
79
leap frog the nation into space age
communication took a tumble with the missing in action of Nigeria’s first ever
communication satellite. However, barely 18 months into its 15 to 18-year
designed life expectancy, the Nig–ComSat 1, was packed up and powered down
because it’s solar power system failed to function. Like the railway contract
controversy, there was diplomatic ripples by the two trading partners over the
project (Quadri 2008:14).
Another noticeable problem in the Sino-Nigeria economic
relations is that Nigeria has been turned into a dumping ground for all
finished goods manufactured in China. Nearly everything Nigeria consumes is now
imported from China and the Nigerian government has not done much to stem the
tide. Even when the Nigerian Government announced that it had banned foreign
textiles in order to encourage the local production, the Chinese businessmen
constructed a small village in Lagos called Chinese Village where banned
Chinese goods were freely traded (Oyewale 2004).
The glut of cheap goods from China is a problem not only
because it brings national industries to their knees but also because imports
are increasingly taking place via Chinese trade merchants. The migration of
Chinese nationals who are engaged in various economic crimes in Nigeria has
constantly raised ripples in the diplomatic circle with the result that several
Nigerians have called for total overhaul of Nigeria’s trade relationship with
China (Oyewale 2004:42) Another Nigerian concern is the influx of substandard
goods from China. Even pharmaceutical drugs in the Nigerian markets are
counterfeit, adulterated or substandard and they are mostly of Indian or Chinese
origin. The negative effects of such bad publicity on Chinese goods are ignored
by China itself. Nigeria’s regulatory agencies such as the Standards
Organisation of Nigeria (SON) and National Agency for Food and Drug
Administration (NAFDAC), Customs and other agencies have regularly alerted the
Nigerian authorities on the implications of these economic crimes for
Nigeria-China bilateral relations (Okoya 2010:18).
Despite these problems, there is the need to ensure that
these obstacles are surmounted and that the trade imbalance is addressed to
mutual beneficial outcomes for both countries. One effective way to address the
trade imbalance is to evolve a cooperative mechanism that would enable Nigeria
to increase its export of manufactured goods to China. Over the years, the
bilateral trade between China and Nigeria has been growing steadily, but its
total volume has been to Chinese advantage. The Chinese Government should
encourage Chinese enterprises to give preferences to Nigerian goods with a view
to addressing a trade balance between China and Nigeria.
80
Another approach to the problem is for Chinese companies in
Nigeria to diversify their economic activities. Rather than restricting
themselves to merely importing finished goods from China for sale in Nigeria,
they should invest in the productive sectors of the Nigerian economy and
thereby gain from the export of such Nigerian made goods. In this regard, there
is the need to bring into Nigeria the kind of technology that Nigerians can
easily adapt to. Continued effort should be made to further explore the
potentials of economic and trade cooperation and address problems that exist
between the two countries through joint efforts. By investing in Nigeria, the
Chinese investors will not only be enhancing our bilateral cooperation and
relations, hey will also help to create employment opportunities, and by
extension, contribute to the stability of democracy and good governance in both
countries.
In addition, the two countries should vigorously develop and
consolidate on investment co-operation. The Chinese should set up special funds
and take other incentive measures to encourage its strong and creditworthy
enterprises to make investments in Nigeria and to set up export-oriented
processing industries, explore natural resources, launch projects with
marketable products and economic returns. China should be encouraged to
strengthen and improve its co-operation with Nigeria in engineering projects
and take part in their economic development and project development through
project contracting, technological co-operation, management co-operation and
labour cooperation among other things.
Above all is the recurring question of how to borrow a leaf
from the Chinese small scale industries and self-reliance on the one hand and
from the Chinese conduct and management of its population census on the other.
Without doubt, what Nigeria needs is an efficient productive base in the rural
areas and a noncontroversial census which can be used and relied upon for
economic planning. Chinese technology is really down-to-earth and Nigeria needs
this type of technology in its search of self-reliance.
Efforts should be made to constantly increase and improve
the co-operation between China and Nigeria in agriculture, transportation,
medical care and public health, the exploration and exploitation of natural
resources, banking, information technology and other areas. China should set up
a foundation for Human Resources Development in Africa, specifically for the
purpose of training professionals for African countries. In addition, we should
enhance our cooperation and consultants in multilateral and regional organisations
in order to safeguard the interests of both sides.
The private sectors of both countries should urgently
establish bilateral chamber of commerce in order to promote improved
Sino-Nigerian relations.
81
Such a body would be indispensable in identifying
areas of cooperation and educating business people and groups about
opportunities for mutually beneficial economic ties between both countries. In
fact, this would complement the objectives of Nigeria-China Friendship
Association (NICAF) which seeks to encourage Chinese investments in Nigeria,
and enable its members to tap and adapt China’s less sophisticated technical
skills in tool and machine fabrication to Nigeria’s needs.
The time to reinvigorate and refocus the strategy for
South-South cooperation is now. Members should encourage investment across
borders of the countries of the South. An effective and productive linkage
among the private sectors of member countries is indispensable if the numerous
opportunities in respective countries are to be fully exploited to their
collective advantage. Both Nigeria and China must rededicate themselves to
exploiting the comparative advantages and complementarities inherent in their
respective economies, and adapting new and innovative approaches in pursuing this
objective.
Conclusion and Options for the Future
Nowhere in the world is China’s rapid rise
to power more evident than in Africa, particularly in Nigeria. From multi-billion dollar
investment in oil and minerals to the influx of thousands of merchants,
labourers and cheap consumer goods, China’s economic and political reach is
redefining Africa’s traditional ties with the international community. This
paper investigates the emerging relationship between Nigeria and China to
determine whether this engagement is that of a development partner, economic
competitor or new hegemony. The paper, therefore, argues that in order to
understand the Chinese involvement in Nigeria, we need to recognise the range
of economic and diplomatic rationale
behind China’s Nigeria policy as well as Nigeria’s foreign policy responses to
China’s entreaties. From our study, this article came up with the following
findings.
1.
Nigeria-China bilateral relations are in great
disequilibrium and to China’s advantage:
The trade between Nigeria and China has
largely followed a classical pattern of trade disequilibrium between the
developing and the developed economies. The structure of trade between Nigeria
and China reflects the difference in the level of development of the two partners
as well as high degree of complementarities that exist between their economies.
While Nigeria’s exports to China consist mainly of primary commodities, its
imports from that country are made up of largely of industrial goods. Within
this commodity groups, there have been some important changes in the structure
of trade over the
82
years. The paper analyses
from the trade data that despite the increase in trade volume between the two
countries, the bilateral economic relations
have been in favour of China, thus
creating a feeling of the lopsided distribution of the benefit from the
bilateral trade.
2.
The imbalance in economic relations can be addressed to
ensure that therelations lead to mutual beneficial outcomes for both
countries. The structure of trade between Nigeria and China reflects the
difference in the level of development of the two partners as well as high
degree of complementarities that exists between their economies. Although trade
remains the most important element in Nigeria’s economic relations with China,
it has not been complemented significantly by the flows of investment and aid
between the two countries. The consequence of intensive asymmetric bilateral
interaction to the achievement of Nigeria’s broader national goal should be
given serious thought by the Nigerian policy makers and the public alike as such relationship could be jeopardised if
one- sided economic relations continue. A continuation of this pattern of
lopsided relationship might have serious repercussions for Nigeria. The
intensification of dependent relationship can provide an enormous advantage to
China in continuation of its economic and industrial expansion.
The expansion of Nigeria’s economic
interactions with China is constrained by a number of factors. These include
the imbalance in the structure of level of their trade, the inadequacy of the
industrial infrastructure for promotion of relations, the incidence of flooding
of the Nigerian market with substandard goods from China and inability to
implement various bilateral agreements between the two countries among other
problems. However, despite this trade imbalance and other challenges, the
bilateral relationship should be symbiotic and mutually beneficial to both
countries.
3.
Nigeria can benefit from the objectives of South-South
Cooperation by learningfrom the Chinese socio-economic transformation. The
paper demonstrates that Nigeria can learn from the Chinese success story. The
government and people of China are noted for discipline that promotes hard work
and dignity in labour. The leadership itself is both frugal and sacrificial
with little or no room for ostentation and corruption. This type of leadership
that is committed to people-oriented development, except in a few instances had
been absent in post-independent Nigeria.
In conclusion therefore, it must be
emphasised that Nigeria’s economic policy towards China has undergone a number
of shifts of emphasis and reappraisal of priorities. Nigeria-China relations
should, however, go beyond rhetorics. The possibilities and potentials of a
bilateral cooperation between the two countries have not been fully exploited.
Nigeria and, indeed, Africa should move beyond the bounds of marginality and
peripheral association where we are looked upon as marginal factors merely for
tilting matters in favour of
83
developed market economies. Nigeria abounds
with immeasurable reservoir of opportunities for trade, investments, business,
and cooperation. The phlegmatic response to invitations of Chinese investors to
come and invest in the country has not been encouraging as one would have
expected.
In addition, therefore, for Nigerian-Chinese relations to
wear a more acceptable face, the two countries must go beyond the formalities
of signing bilateral agreements. Rather concrete steps must be taken by the two
countries to actualise the dreams of these agreements. This will be to the
mutual benefit of both countries. By this initiative, Nigeria will take
advantage of this bilateral interaction to improve on its domestic economy
rather than being a mere provider of raw materials and importers of finished
goods from China. The pattern of economic relations between the two countries
in future would significantly be determined by the extent to which both
countries understand each other’s problems and interests and adopt a cooperative
attitude towards solving them.
Recommendations and Options for the Future
1. Nigeria’s
relationship with China should henceforth reflect a profoundunderstanding that
our basic national objectives are long-term. Our policy now and in the near
future, must be informed by our ultimate national interests. Nigeria has the
responsibility to protect its economy from domination by foreign enterprises
which are interested not in the local economies, but in the economies of the
developed industrialised states.
2. One
effective approach to address the trade imbalance is to evolve a
cooperativemechanism that would enable Nigeria increase its export of
manufactured goods to China. In addition, Chinese companies in Nigeria should
diversify their economic activities. Rather than restricting themselves to
merely importing finished goods from China for sale in Nigeria, they should
invest in the productive sectors of the Nigerian economy and thereby gain from
the export of such Nigerian- made goods.
3. Nigeria
should diversify its economy as well as create an enabling businessenvironment
to encourage Chinese and other investors. We must work towards addressing basic and other
infrastructural impediments to the spread of knowledge, such as provision of
electricity, transport and better telecommunication facilities, as well as
finding ways, where appropriate, to remove the impediment on regional integration.
4. In Nigeria
and other parts of Africa, there is growing concern about substandardproducts
coming from China. Nigeria needs firm commitment from China to tackle and stop
this menace. One expects, in the long run, that the several Chinese companies
now operating in Nigeria will transfer their technical and managerial skills to
Nigeria workers to ensure strengthened cooperation and accelerate economic
development in Nigeria.
84
5. There is a
need for the two countries to coordinate their foreign policyapproaches in
order to facilitate international response to pressing international economic
issues such as globalisation, regional integration and global economic crisis.
There is need for continuous exchange of visits at the highest level to be
strengthened. However, in spite of the
high level of official visits, the two countries are yet to forge a close
political understanding necessary to boost their cooperation in the economic
and technological sectors.
6. Nigeria and
China have long standing ties of bilateral relations and a mutualcommitment to
the quest for global peace, progress and economic prosperity. There is need for
the Nigerian Institute of International Affairs (NIIA), Nigerian Institute for
Policy and Strategic Studies (NIIPS), various Departments of International
Relations in both the Nigerian and Chinese Universities and the Chinese
Institute of International Studies (CIIS) not to restrict their activities to
strictly academic endeavours. The CIIS and NIIA, for instance, should make the
governments of China and Nigeria take and implement policies proposed by both
institutes.
7. Nigeria
should learn from Chinese socio-economic transformation. As Nigeriarallies to
industrialise its economy, it will not be out of place if it copies the Chinese
model that is relevant to our local environment. But more than anything else,
the Nigerian government should encourage Nigerians to effectively adopt technology that has kept China at the
cutting-edge of global economy. For example, Nigeria has a lot to gain from
having access to China’s low-cost technologies, because they are easily
exportable and transferrable because of their adaptability and simplicity.
8. Nigeria’s
interest in entering into bilateral economic relations with China in1971 arose
partly from the fact that such a relationship would be devoid of the
master-servant relationship which tainted historical and economic links with
the developed market economy countries of the West. It is hoped that, unlike
the unequal economic relationship that existed and continues to exist, economic
relations with China in future will be built on a foundation of equity, mutual
respect and equitable distribution of the fruits of international division of
labour.
9. The time to
refocus strategy for South-South Cooperation is now. Membersshould encourage
investment across the borders of the countries of the South. An effective and
productive linkage among the private sector of member countries is
indispensable if the numerous opportunities in respective countries are to be
fully exploited to their collective advantage. Both Nigeria and China must
rededicate themselves to exploiting the comparative advantages and
complementarities inherent in their respective economies, and adapting new and
innovative approaches in pursuing this objective.
CODE: 33
85
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