The Evolving Geopolitical Relations of Nigeria and China: What is the impact of the Nigeria-China trade and direct investment on the Nigerian economy?

Abstract

This paper examines the growing economic relations between Nigeria and China with the aim of providing more information on the true impacts of their bilateral trade expansion on the Nigerian economy, both at the domestic and international level through the lenses of authors of various literature reviews. In order to perform this assessment, this paper will examine the history of Chinese penetration into Nigeria and its industries in comparison to other Western investors. This research evaluates current trade statistics between both countries. Data was collected mainly from secondary sources. Nigeria and China have had a longstanding relationship founded on a strategic partnership to promote a South-South cooperation, development and growth of their economies. The conclusion is that there is a neo classical dependency theory that Chinese growth and development model is beneficial for the Nigerian economy and China’s expansion in Africa is not a new form of colonialism. However, Nigeria needs to create more employment opportunities for its local population by reducing the number of the Chinese workers through a process of skills and acquisition transfer.