The People's Republic of China and the Federal Republic of Nigeria signed an oil agreement worth at least $23 Billion. The shift in oil policy in the West African state has created friction with Western-based oil firms that have dominated since 1956.
Originally uploaded by Pan-African News Wire File Photos
Thursday, 17 June 2010 00:00
By Taiwo Hassan Business Services
China has invested over $7.24 billion (N 1, 08 trillion) in Nigeria’s economy so far, especially in strategic areas like agriculture, energy, electricity, construction and telecommunications.
Besides, the volume of bilateral trade between the two countries has hit $6.37 billion (N 944 billion) in 2009.
Specifically, China’s exports to Nigeria currently stands at $5.47 billion (N 810 billion), while imports from Nigeria was $ 0.897 billion (N134 billion), about 76.3 per cent increase compared to 2008 level.
Stating this at a business round table media session organised by the Nigeria- China Business Network Group in Lagos yesterday, the Consular-General, Gud Kun, said that the relationship between the two countries have been growing over the years, particularly, since 1971, when the Far East Asian country and Nigeria, established diplomatic ties.
According to him, in 2006, China and Nigeria signed a memorandum of understanding on establishing strategic partnership.
He however stressed that there is wider trade surplus against Nigeria, noting that this imbalance needs to be resolved to achieve closer ties.
Specifically, Kun said that the most important reason for China’s trade surplus with Nigeria was due to the different economic structures of the two countries.
For instance, “manufacturing of goods is an integral part of China’s economy, while in Nigeria, crude oil is the mainstay of the economy.”
The Consular-General however pointed out that his country has been receiving limited crude oil from Nigeria, consequently creating imbalance of trade.
He added that his country has been working towards greater cooperation in the areas of energy and infrastructural development.
He also hinted that the Chinese government wants the Nigerian government to roll-out a policy reform that would give opportunities for more Chinese companies to invest in Nigeria.
Kun explained that China has already created more than 30, 000 jobs for Nigerians, adding that this impact could be felt mostly with Chinese companies’ investments especially at the Lekki Free Trade Zone, Viju Group of Companies, among others.
According to him, “when Lekki Free Trade Zone project becomes a reality, Nigeria’s manufacturing capacity will be largely enhanced, which definitely would contribute more to Nigeria’s export profile.
“Also, Chinese government has been sparing no effort to provide convenience to Nigerian investors in China.”
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