THE UNFOLDING DYNAMICS OF NIGERIA’S STRATEGIC PARTNERSHIP WITH CHINA

Abstract

The entrance of China into African and subsequently Nigerian markets has raised questions of the trade imbalance between Nigeria and China. Although various aspects of the trade relations between the two countries have been studied, scant attention has been paid to how the Strategic Partnership Agreement (SPA), an important policy implementation tool, conditions Nigeria-China trade relations. This study was therefore designed to examine the emerging opportunities that have arisen as a result of Nigeria’s trade relations with China. Through purposive sampling, twenty-five in-depth interviews (IDI) were conducted with 25 respondents. Secondary data were garnered from books, journals and media publications. The trade statistics between Nigeria and China were sourced from the World Integrated Trade Solution, Trade Maps, SAIS-CARI, the Central Bank of Nigeria trade statistics, UNCTAD reports and World Bank reports covering 1995-2020. Data were content analysed. For Nigeria, the SPA has contributed to modernising railways and airports, institutionalising annual scholarships for university students, and rehabilitation of the manufacturing and agricultural sectors. For China, the SPA increased cultural exchanges and opened greater access to Nigeria’s natural resources and markets with increased imports at an annual rate of 21.3%. The SPA challenges identified were worsening Nigeria's trade imbalance, with imports rising by 68% between 2018 and 2020 due to the CSWAP, increased illegal fishing, mining and logging of wood, poor monitoring, evaluation, and weak enforcement of policies. A greater decline in the quality of Nigeria's traded goods, non-adherence to import regulations, distance problems, language and security were reported challenges faced by China. The Strategic Partnership Agreement has introduced opportunities and challenges for Nigeria and China. There is a need, therefore, for both countries to develop an inclusive and comprehensive economic growth strategy.