ABSTRACT
Over the past several decades, the
economies of the world have become greatly connected through international
trade and globalization. The trade relations between Nigeria and China have
grown in recent years. Overtime, researchers have contributed on the
Nigeria-China relations with interest on foreign aids, balance of trade,
foreign direct investment and trade policies between the two countries. Most of
them anchored their explanation on dependency theory. They pay less attention
in explicating the relations in terms of mutual benefits arising from the
relations. However, this study examined Nigeria-China trade relations and
economic development in Nigeria in order to establish an understanding of the
impact of Nigeria-China bilateral agreements on the volume of Chinese trade
with Nigeria and to establish a link between the increase in the volume of
Nigeria-China trade on economic development in Nigeria. study was guided by two
research questions: Has the Nigeria-China bilateral trade agreements enhanced
the volume of Chinese trade with Nigeria? Has the increase in the volume of
Nigeria China trade enhanced economic development in Nigeria? To analyze the
issues and questions raised, the study
was anchored on the theory of complex interdependence. The study adopted the
qualitative method of data collection and analysis; it relied on secondary
sources of data. The study found that Nigeria-China bilateral trade agreements
had a positive impact on the volume of Chinese trade with Nigeria; and more so,
the increase in the volume of Nigeria-China trade enhanced economic development
in Nigeria within the period of study. The study recommended that the Nigerian
government should utilize its own talent by pooling together leading scholars, officials,
businessmen and civil society representatives to form a committee dedicated to prescribing
ideas on how to optimize Chinese engagement.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
Over the past several decades, the
economies of the world have become greatly
connected
through international trade and globalization. Foreign trade has been identified
as the oldest and most
important part of a country’s economic relationship. The basis for foreign
trade rests
on the fact that nations do differ in their resource endowment, preferences,
technology, scale of production and capacity for growth and
development. Over the past decades the volume of trade between
nations of the world has increased considerably. Particularly, Nigeria has
witnessed a sharp rise in the volume of trade and investment with other nations
of the world. The relations between Nigeria and China which cut across
political, trade, investment, aid and military spheres
have grown so much in recent years.
The
inevitability of inter-state relations emanating from the inherent tendency of
man for social relations; The world of
a man is in a flux. The fluidity of social relations
conduces
into the search for social coalescence, partnership and cooperation. Naturally,
man is created with inbuilt and ever elastic gregarious instincts which propel
man to enter into social relations with other men basically to eke out a
living. These gregarious
instincts
combine with differential natural resource endowments to induce man to
develop the propensity to partner with others to address the needs of the community. Fundamentally, the scenario opens new vistas of relations between and among states in a
world of change.
International trade is recognized as the most
significant determinant of economic
development
of a country, all over the world. The foreign trade of a country consists of
inward (import) and outward
(export) movement of goods and services, which results into: outflow and inflow
of foreign exchange. Thus it is also called EXIM Trade.
For
providing, regulating and creating necessary
environment for its orderly growth, several bilateral trade agreements have been entered into
between and among countries of the world.
Traditionally, African countries
particularly Nigeria has traded rigorously with the
developed
nations, especially the European Union (EU), Canada and the United States
(U.S.). These economic
relations are governed by various bilateral and regional agreements that exist between these
countries and Nigeria. Although, the relationships have gone a long way, the development impact
is contestable. However, due to the
trade
performance of some Asian countries that has enhanced their income and
improvement in technology, especially China and India, many African
countries including Nigeria have began to diversify their
markets to these countries. This emerging trade partners have created some
incentives to trade with the continent through their foreign direct investment
(FDI) and aid.
China’s first contact with Africa generally
was in the early 15th century when some
Chinese
traders and explorers landed along the coast of Africa. This foundation was
laid by Zheng He, the famous
navigator of China’s Ming Dynasty, who led a large fleet to visit more than 30 countries
and regions in Asia and Africa. Zheng He, who lived from 1371 to 1435, undertook the
African expedition with about 2000 ships and 27,800 people. All these took
place almost a hundred years before Europe discovered and colonized Africa.
Sino-African relations therefore, date back to centuries.
In Nigeria’s case, the country’s contact with
China unofficially, began in the 1950s, 1957 to be precise. In fact, Nigeria’s
initial contact with the Chinese was through Egypt.
It
is on record that Chan Hanq Kang, commercial officer in the Chinese
Embassy in Cairo, established unofficial trade links with Nigeria, along with Tunisia,
Libya, Ghana, Ethiopia, Tanganyika (now Tanzania) in 1957.
During the colonial era, it was a taboo for Nigerians to have anything to do with the communist
world which China belonged to. Nigerians like Funmilayo Ransom Kuti a frontline
Nigerian political and social activist, much to the chagrin of the colonial
authorities secretly visited Berlin and Beijing in the 1950s to attend
meetings. Her application for the renewal of her
passport was turned down. All contacts with the Eastern bloc countries and
China were prohibited and proscribed. All Nigerian students who obtained
benevolent scholarships from undisclosed sources and Nigeria Trade Union
Leaders who attended international conferences in those countries have to be
smuggled out of Nigerian through Ghana.
But this position was reversed in 1958 by the
Nigerian Prime Minister, Tafawa Balewa in a policy statement in parliament
which states in part: “we shall of course endeavor to remain in friendly terms with
every nation which promises and respects our sovereignty”.
However,
Nigeria’s first contact with the People’s Republic of China (PRC) was in 1960,
when the Chinese
government was invited to the country’s independence celebrations.
Nigeria’s first
contact with China is designated as “the era of
Informal Ties, 1960-1971”. At independence, Nigeria political leadership
was not only pro-west but vividly anti-communist. The resultant effect of this
peculiar disposition was that Nigeria’s attitude towards Communist China
followed what had then emerged as a clear pattern of most of her relations with
the socialist states-diplomatic isolation accompanied occasionally by bitter
attacks against communist subversive ideology at home. As noted at
independence, the worldview of Nigeria’s political leadership did not consider
close relations with the People’s Republic of China as one of the agenda which
the country would need to cultivate. While the then Prime Minister Tafawa
Balewa declared on October 7, 1960 that Nigeria would be friendly with all
countries that recognize and respect her sovereignty, territorial integrity and
political independence, he soon made it clear thereafter where the line was
going to be drawn. The leaders of the three major political parties- the
Northern People’s Congress (NPC), the Action Group (AG), and the National
Convention of Nigerian Citizens (NCNC) were for various reasons not comfortable
with communism. The ideology was not properly understood and was therefore
feared. Consequently, neither Chief Obafemi Awolowo nor Dr Nnamdi Azikiwe
visited a communist country during their life time. This was despite the fact
that Nigeria was the third largest market in Africa for Chinese goods with a
steady growth in import from China. At the same time, the Chinese did not allow
Nigeria’s ideological preference for
liberalism to stand in the way of their obviously very lucrative trade
relations with the country.
Nigeria which had consistently voiced its
willingness to formalize ties with People’s
Republic of
China did so on 10 February 1971.Nigeria established relations with China in
February 1971 and has since then maintained good relations with it. China as
economic partner to Nigeria has been very dogged and focused in her relations
with Nigeria over the decades. Despite the ups and downs of Nigeria-China
relations, the Chinese have continued to
ensure that their market shares in Nigeria remains on a steady path of growth.
This should suggest that China has a long term plan for its engagement with
Africa. Meanwhile, China and Nigeria
have remarkably many things in common. The two countries share the same
national day, are both multi-racial. In addition, China has 56 ethnic groups,
Nigeria has about 250. Nigeria’s population is the largest in Africa, and China
is not only the largest in Asia but largest in the world. China had suffered
from humiliation and occupation during its colonial period and Nigeria also had
its fair share of colonial experience and humiliation.
The trade relations between Nigeria and China
have now become most evident. In Lagos,
Onitsha, Aba, Kano, Nnewi and almost every Nigerian market, one can buy
something, Chinese textiles, food items,
drugs, electronics, phones, computers and cooking utensils. Nigeria’s communications satellite (NIGCOMSAT-1) was
designed, built and partly funded by China.
The NIGCOMSAT-1 was also launched in China.
Nigeria is therefore, doing so much today with
China in terms of trade and investments. The Nigerian government in
recent times has found Chinese companies
more sensitive to economic challenges than their western counterparts. Indeed, the Olusegun Obasanjo Administration
(1999-2007) came with increase in the tempo of
Nigeria-China bilateral relations. This is understandable since Nigeria
had just freed itself from the status of
a pariah state which Nigeria’s burdensome military dictatorship forced on it.
However, the
focus of this study is to analyze the impact of Nigeria-China relations
on economic development
in Nigeria between 2011 and 2015; particularly to examine the impact of bilateral trade agreements between Nigeria
and China on the volume of Chinese trade with
Nigeria and to establish a link between the increase in the volume of
Nigeria-China trade on economic
development in Nigeria. Since the literature on trade relations is wide, this
period is chosen in order to present a summary of more recent findings on the
subject. Again, the years under review represent a period of renewed foreign
engagements in Nigeria partly due to transition from long period of military to
civil rule.
1.2 Statement of Research
Problem
The
foundation of Nigeria-China relations dates back to the early 1960‘s when
Chinese delegation visited Nigeria in 1964 seeking to establish diplomatic ties
with the country. Ever since then, Scholars of foreign policy have produced
research works on the bilateral relationship that exist between Nigeria and
China. This research examines the Nigeria – Chinese economic and trade relations;
trends, problems, and prospects from 2011– 2015. It is a scholarly
investigation into the economic and trade relations between China and Nigeria.
It investigates the nature and character of the economic and trade relations
and proffers answers to such fundamental questions as:
1 Has
the Nigeria-China bilateral trade agreements enhanced the volume of Chinese
trade with Nigeria within the period of
study?
2 Has the increase in the volume of
Nigeria-China trade enhanced economic
development in Nigeria within the period of
study?
1.3 Objective of the Study
The
Nigerian government in the era of globalism is into different relations with
countries
in
order to boost its economy. However, the opening of its borders and ties to
China has
increased
tremendously compared to most countries of the world. This study has both broad
and specific objectives. The broad objective of the study is to analyze the impact
of the Nigeria-China trade relations on economic development within the period,
2011-2015. Specifically, the study intends:
1.
To ascertain if the Nigeria-China bilateral trade agreements has enhanced the
volume of Chinese trade with Nigeria within the period of study.
2. To determine whether the increase in the
volume of Nigeria-China trade has enhanced
economic
development in Nigeria within the period of study.
1.4 Significance of the Study
The
significance of this study cannot be underestimated. This study will lay
emphasis on general historic knowledge of bilateral relation between Nigeria
and China especially in the areas of bilateral trade, economic relations,
politics and cultural relations.
The
findings of this research work will undoubtedly provide the much needed
information to government, organizations on the opportunities provided by the
trade partnership between Nigeria and China, and the nature of economic relations
and its effects on national development in Nigeria.
The
importance of this study to the field of International Relations is that this
study relates the importance of bilateral trade relations as a means of change
and development, most certainly when the nations involved are in need of each
other.
1.7 Scope and Limitation
This study intends to cover the period 2011 – 2015 of China and
Nigeria trade and
economic
relations. Tracing some of the important contents of the Nigeria – Chinese
relations
involving social, economic, trade and political relations. Emphasis will
focus
on the trade partnership and economic relations between Nigeria and China,
starting particularly from 2011 during
Goodluck Jonathan's tenure to 2015. Trade agreements, partnerships, economic
advancement efforts and mechanisms to achieving the trade relations would be
reviewed. This study therefore examines economic and trade relations between
the two countries, meticulously looking at the trends, problems and prospects.
This study was constrained by a number of factors just like any other research,
ranging from unavailability of needed accurate materials on the topic under
study, inability to get data on the progress made so far on trade from both
countries, and inaccessibility to cooperate bodies engaged actively in the
trade. However, efforts were made to overcome some of these shortcomings
through adequate use of secondary sources of data collection.
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Item Type: Project Material | Attribute: 77 pages | Chapters: 1-5
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