When in February 1971 Nigeria and the Peoples Republic of China met to establish diplomatic relations, it was that it would be beneficial to the two countries.
Between 1971 and 1999 both countries witnessed very little activities diplomatically; there were low bi-lateral trade relations, a near absence of Chinese Foreign Direct Investments into Nigeria.
Nigeria’s economic activities at that time were skewed more towards the West as its traditional development and trade partners. Western countries dominated Nigeria’s foreign political and economic relations.
Majority of the Foreign Direct Investment inflow to Nigeria, foreign aids, grants and technical assistance were most from Europe and America while in return, 90 percent of Nigeria’s exports (mostly crude oil) went to them.
Since the turn of the century relations between China and Nigeria and indeed Africa has been on an aggressive upward trend characterized by unprecedented renewed positive and mutually beneficial cooperation arrangements.
With the signing of agreement in economic, cultural, scientific, and educational fields coupled with increased Chinese FDI, aids/ grants, technical assistance as well as capacity building programmes for Nigerian officials.
It is worthy of note that over the years, Nigeria and China have signed over six agreements. For instance, in 2001, the two countries signed an agreement for the establishment of a Nigerian Trade office in China and a China Investment Development and Trade Promotion Centre in Nigeria.
Also, in 2002 alone, Nigeria and China signed three agreements, one for the avoidance of double taxation and prevention of Fiscal evasion with respect to tax and income. Two, agreement on Consular Affairs while the third was for cooperation and strengthening management of Narcotic Drugs, Psychotropic Substances and Diversion of Precursor Chemicals and another on Tourist.
At various times, Nigeria has also received grants from China. In 2006, Nigeria got a grant of 46million Yuan from China to combat malaria and train its health personnel on malaria prevention and control.
Presently, China’s Foreign Direct Investment to Nigeria is said to be about $10.57 billion (N272billion) in 2012.
In spite of these ‘great stride’ made by China to entrench its interest in Nigeria, nothing much is being done on the Nigerian side.
But rather, the country has become a dumping ground for all sort of fake and substandard Chinese products due to the inability of its government to put life to the real sector of its economy.
However, with the recent increase in the export of crude oil to China by Nigeria, which constitutes 1-2 percent of Nigeria’s total crude oil export, coupled with the fact that 1.1million metric ton of Cassava chips was exported to China from Nigeria, there is hope that our trade volume to China would shore up a little bit.
Whichever way one looks at it, Chinese imports far outstrip exports, creating a large trade deficit and flooding the Nigerian market with low-tech manufactured goods that could otherwise be produced domestically.
A lot of Nigerians have raised eyebrow over the manner of Chinese penetration in Nigeria.
None the less is the governor of the Central Bank (CBN), Sanusi Lamido Sanusi, who in an interview with Financial Times of London last month had warned Nigeria albeit African countries over the manner of Chinese economic assistance saying it is a marked of economic yoke.
Mr. Sanusi Lamido was said to have described the relationship as carrying a “whiff of Colonialism.”
Financial analyst, Mr. Jide Ogundare, could not agree less when he told FrontiersNews that Nigeria was dragging itself into economic colonialism with its two eyes opened.
“In 1971 when Nigeria and China established diplomatic ties, both countries where emerging economies but today what do we have, China has gone ahead to become a world economic power while Nigeria is still seeking assistance from a country that it should ordinarily be rubbing shoulders with. It is indeed a shame.
Many are of the opinion that the President’s visit to China is to seek for assistance.
But the President did come out to saying that the visit is not to solicit for ‘alms’ but for economic reasons.
According to Presidential Spokesman, Mr. Reuben Abati, "China is a very important country. China is the largest market in the world with its 1.35 billion people. China is also the world largest creditor nation. China is also the largest importer and exporter of goods and it is a large consumer of primary commodities, including crude oil. In fact, after the US, China is the largest importer of crude oil in Nigeria".
"So, it is in our strategic national interest to have very good relationship with such a country. Nobody can call this trip a junket," he said.
"The claim that the China trip is a respond to the fact that Obama did not come to Nigeria is also not true because this trip was planned one year ago. Every country has the right to determine where they go.
But China is also an important partner. China has shown a lot of interest in Africa in the last few years," he said.
"Nigeria is a major trading partner with China. We have over 30 Chinese companies operating here."
Mr. Abati insisted that Nigeria is interested in is a long term sustainable relationship with China.
"Part of the purpose of this trip is also to encourage China to invest more in Nigeria; foreign direct investment. The emphasis is not necessarily on loans although during this trip, there are two concessionary loans that will be considered in relation to the Zungeru Hydro Power Project and one other.
In spite of misgivings about the trip, the truth is that we need China more than they need Nigeria.
And this is where the visit by President Jonathan is imperative!
Interestingly, China has come a long way as it is currently the number one country economically in the world with $265.26billion, followed by US, UK, Brazil and India with $196.13billion, $190.60billion, $169.86billion and 114.04billion respectively.
Though there is no consensus as to whether china’s engagement adds to or detracts from Nigeria’s economic growth as measuring the economic and social outcome is difficult.
And Jonathan did once again proved critics wrong when he signed five agreements after bilateral talks with President Xi Jinping. They are:
Framework Agreement on Comprehensive Financial Cooperation In Support of Nigeria’s Economic Development, a Preferential Buyer Credit Agreement for Nigeria’s Four Airports Expansion Project.
Other agreements signed include Economic and Technical Cooperation between Nigeria and China, an Agreement on Mutual Visa Exemption for holders of diplomatic and official passports from both countries and an Agreement for the Prevention of the Theft, Illicit Import and Export of Cultural Property.
Mr. Dele Ajayi Smith, speaking with our correspondent applauded President move advising that Nigeria “must ensure that it is a balanced relationship. We must not do it at the expense of the people.”
The long run effect President Jonathan’s visit to the world’s top economy if properly managed will usher in a period of prosperity in Nigeria.
This can only be seen with time.
Frontiersnews
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