INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

China’s Presence in Nigeria 2000-2025: Trade, Infrastructure

Development, Diplomatic Relationship, and Its Impacts

Chioma D. Chukwudozie*

Department of History and International Studies, Faculty of Arts, Nnamdi Azikiwe University,

Anambra State, Nigeria

Corresponding Author*

DOI: https://dx.doi.org/10.47772/IJRISS.2025.91100252

Received: 21 November 2025; Accepted: 28 November 2025; Published: 06 December 2025

ABSTRACT

This study critically examines China’s presence in Nigeria’s domestic affairs and its implementation towards

development in Sino-Nigerian diplomatic relations from 2000 to 2025. China’s economic engagement with

Nigeria, characterized by investment, infrastructure development, and trade expansion, has been praised for

promoting economic growth and fostering a win-win diplomatic relationship, but criticized for insufficient

attention to maintaining financial stability. By analyzing bilateral agreements, investment trends, labor practices,

and international business ethics frameworks, this paper examines whether China’s presence in Nigeria creates

exploitative business environments or impedes regulatory oversight. Drawing on secondary data sources,

including government reports, academic studies, and news articles, the study reveals a complex interaction of

economic development. Findings indicate that while China’s investments have accelerated infrastructure and

industrial growth, they have also exposed Nigeria to trade imbalances and environmental concerns. This paper

concludes by offering policy recommendations that balance economic collaboration, emphasizing regulatory

reforms, transparency, and strategic engagement with global financial institutions to reduce over-dependence on

Chinese loans and ensure sustainable development.

Keywords: Relations, trade, infrastructure development, diplomatic agreements, China, Nigeria, investments.

INTRODUCTION

Nigeria and China have fostered a robust partnership since the 1970s, beginning with the acknowledgment of

China’s sovereignty. This bilateral relationship is considered mutually beneficial, encompassing trade,

investment, and diplomatic agreements. Nigeria seeks financial and technological investments from China, while

China aims to secure access to Nigeria's raw materials and bolster its global influence. (Dike and Owusu 2024)

projected that Nigeria ranks as China’s primary engineering market, second-largest export market, third-ranking

trading partner, and a crucial investment hub in Africa. Consequently, the profound Chinese participation in

Nigeria’s economic sphere has led political scientists to forecast a potential recurrence of Western-style

exploitation of Nigerian resources. Between Nigeria and China, the relationship is characterized as sophisticated

and complex, offering a more balanced interaction than with the West. Despite this balance, the interactions are

still perceived as unequal. Recent scholarly observations indicate a gradual shift in Nigeria's patronage from

Western nations towards China and other BRICS countries located in Asia and Latin America (Oke,

Oshinfowokan, and Okonoda, 2019). However, the sustainability and viability of the Nigeria-China relationship

remain subjects of discussion and skepticism among experts.

It is important to note that both Nigeria and China are significant powers, with China exerting greater influence

on the global stage. Nigeria is recognized as the most populous nation in Africa, while China claims the title of

the most populous country worldwide. Economically, both countries exhibit substantial capabilities within their

respective geographical contexts, although China's economic dominance is often viewed as greater than Nigeria's

regional influence (Salaudeen and Guo, 2024; Ejiroghene, 2022). As a consequence, this paper examines the

complexities of China-Nigeria relations from 2000 to 2025, focusing on key aspects such as trade, infrastructure

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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

development, and diplomatic agreements. The rationale for this analysis stems from ongoing debates over

China's influence in Nigeria, particularly the benefits and drawbacks of this partnership. There are significant

concerns within Nigeria about the economic implications of Chinese loans and investments, which has sparked

discussions about the country's increasing reliance on these financial sources. By investigating the historical

context and the current state of relations, this review aims to understand the origins of these dynamics and their

anticipated effects by 2025.

Background

The Sino-Nigerian relationship has undergone several transformative stages, namely formative, revolutionary,

and reconstruction phases, each contributing to the complexity and depth of bilateral ties. The formative stage

(1940-1960s) of the China-Nigeria relationship was characterized by a series of diplomatic, economic, and

cultural exchanges that laid the groundwork for future collaboration between the two countries (Abubakar, 2025;

Ejiroghene, 2022). However, during the 1960s, the relationship between China and Nigeria faced significant

challenges, influenced by a combination of geopolitical changes, ideological differences, and internal conflicts

within Nigeria. Following Nigeria's independence from Britain in 1960, the nation was navigating its identity

and foreign policy orientation, which impacted its diplomatic engagement with China. China, under Mao

Zedong, was pursuing a policy of solidarity with developing nations, positioning itself as a champion of anti-

colonial struggles, which initially created a favorable backdrop for relations.

Over time, several complexities arose. The Nigerian Civil War (1967-1970), driven by ethnic tensions and

secessionist aspirations, diverted the country's attention and resources, complicating its interactions with China

(Agubamah, 2014). Additionally, the ideological divide was palpable. At the same time, Nigeria leaned toward

Western alignment, particularly in the early years following independence, China intensified its advocacy for

Marxist-Leninist principles, which did not resonate uniformly within Nigerian political circles (Agubamah,

2014).

Furthermore, external influences played a crucial role in shaping the dynamics of the Sino-Nigerian relationship.

The Cold War context meant that both countries were simultaneously navigating pressures from the United

States and the Soviet Union, impacting their bilateral interactions and perceptions of each other. As Nigeria

sought military and economic support during the Civil War, its reliance on Western powers strained relations

with China, which was advocating for the non-aligned movement (Nwachukwu, 2017). Both countries attempted

to establish formal diplomatic ties. Still, the complexities of Nigeria's internal politics, its hesitant foreign policy,

and China's evolving stance on African engagement led to a relationship characterized by cautious interaction

rather than a robust partnership during this decade.

Notwithstanding, the revolution (1970s-1990s) saw a significant shift as both countries increasingly aligned

politically and economically. During this phase, key developments included the establishment of diplomatic ties

in 1971 and a series of bilateral agreements to enhance cooperation across sectors such as agriculture, trade, and

infrastructure development. The Chinese government provided financial assistance and expertise to support

Nigeria’s burgeoning sectors, which were crucial to Nigeria's economic growth (Agubamah, 2014). China

emerged as Nigeria's largest trading partner, with trade volumes increasing dramatically. Bilateral trade has been

bolstered by strategic infrastructure investments, exemplified by Chinese firms’ involvement in major projects

such as railways, roads, and energy infrastructure. This partnership is further enhanced by China’s Belt and Road

Initiative (BRI), which aims to improve connectivity and cooperation among participating countries. Nigeria's

endorsement of the BRI has led to increased Chinese investment, leading to job creation and capacity building

within Nigeria (Nwokolobia and Ikenga, 2023; Oke et al., 2019). Additionally, China has provided substantial

financial aid and loans to Nigeria, contributing to various sectors, including telecommunications and agriculture

(Abubakar, 2025; Ejiroghene, 2022). China's rise as a global power resonated in Nigeria's search for new

partnerships, leading to expanded trade relations, infrastructure investments, and joint ventures across sectors

such as telecommunications and energy. China's emphasis on non-interference in domestic affairs resonated with

Nigeria's leaders, fortifying diplomatic ties.

Moreover, cultural exchanges also played a vital role in strengthening the bilateral ties. Initiatives such as

language education and artistic programs fostered mutual understanding and respect between the two nations

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(Nwokolobia and Ikenga, 2023). The Chinese language became increasingly popular in Nigeria, while Nigerian

arts and culture were introduced in various Chinese contexts (Salaudeen and Guo, 2024). There were also

increasing people-to-people exchanges through educational programs, scholarships, and cultural festivals. These

efforts aim to foster mutual understanding and goodwill, promoting a deeper cooperation beyond mere economic

exchanges. However, the relationship is not without challenges. Concerns have been raised about the terms of

Chinese loans and their implications for Nigeria’s sovereignty. Discussions on the need for a balanced

relationship that protects Nigeria's interests are ongoing.

The reconstruction stage, which began in the early 2000s and is ongoing, has focused on deepening economic

cooperation, with China's Belt and Road Initiative playing a pivotal role. China's interest in Nigeria is driven by

the latter's vast natural resources, market potential, and strategic location within Africa, making it a pivotal player

in China's broader Belt and Road Initiative (Odeh et al., 2017). The partnership has led to significant Chinese

investment in vital sectors such as oil and gas, telecommunications, and transportation. Major projects, including

railway construction and power plant development, underscore China's commitment to supporting Nigeria's

infrastructure development (Odeh et al., 2017). Furthermore, diplomatic engagements between the two nations

intensified, with high-level visits and exchanges aimed at fostering cooperation. As both countries navigate the

evolving geopolitical landscape, the Sino-Nigeria relationship serves as a model of international collaboration,

offering opportunities for shared economic growth and development that could reshape regional dynamics.

Overall, these stages signify a dynamic evolution of Sino-Nigerian relations, with increasing interdependence

shaped by historical context, geopolitical interests, and socio-economic factors, illustrating a comprehensive

partnership that seeks to address mutual aspirations in a rapidly changing global landscape.

METHODOLOGY

The data collection used in this literature review was drawn from secondary sources, including government

publications, academic journals, market research reports, online databases, and news articles. This approach

allows for the deep examination of the historical, economic strategies, investment trends, infrastructural

initiatives, and diplomatic agreements in the context of both countries' relationship.

LITERATURE REVIEW

Emehelu (2022) examines the impact of Nigeria-China relations on power and economic growth in Nigeria,

noting that bilateral trade agreements began in 1971, with significant economic activities commencing in 1995

under General Sani Abacha. It finds that household consumption, gross investment, and net exports positively

affect GDP. In contrast, government expenditure has an adverse impact, highlighting China's concerns regarding

economic interests, industrial shutdowns, labor conditions, and job losses. The study also highlights Nigeria's

historical dependence on oil exports and its high economic volatility, in contrast to China's more stable growth.

It recommends that Nigeria encourage direct Chinese investment, diversify its export commodities, and build

human and infrastructural capital.

Ajah (2024) examined that Nigeria has utilized the Belt and Road Initiative (BRI) to secure funding for railway

infrastructure rehabilitation and upgrades. The Railway projects, like Abuja-Kaduna, Lagos-Ibadan, Ibadan-

Kano, and Warri-Itakpe, are funded through loans from the EXIM Bank of China and the CDB, with varying

funding models and construction companies involved. Chinese construction companies have been awarded all

railway contracts under BRI funding, with a focus on enhancing connectivity. Key railway projects in Nigeria

include the Abuja-Kaduna Railway and the Lagos-Ibadan Railway, both of which were constructed by CCECC.

The BRI has expanded Nigeria's railway network, improved connectivity, promoted regional integration,

facilitated capacity building, and enabled technology transfer. Chinese investments have also led to positive

developments in Nigerian ports, such as the Lekki Deep Seaport, which the CDB partially funds. CCECC has

also played a crucial role in expanding four international airport terminals in Nigeria, sponsored by the Export-

Import Bank of China through the BRI.

Agubamah, E. (2014) emphasised that Nigeria established diplomatic relations with China in 1971, following

initial contact during its independence celebrations in 1960. The relationship, framed by China as a "win-win"

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situation, is critically analyzed through the lens of dependency theory, revealing discrepancies between this

perception and on-the-ground reality. The author identifies significant economic and diplomatic aspirations,

highlighting Nigeria's aim to enhance ties with China as the latter continues to grow as a global financial

powerhouse. Despite their strategic importance to each other, the relationship is characterized by an inequality,

with Nigeria heavily reliant on oil and struggling economically, while China boasts a diversified economy. The

author argues that without addressing these fundamental disparities, the partnership is more accurately described

as a "win-lose" scenario, undermining aspirations for truly mutually beneficial cooperation.

Bekele. A (2020) emphasized that China-Nigeria relations have grown significantly through trade agreements,

infrastructure investments, and bilateral cooperation. The partnership has improved Nigeria's infrastructure and

economy, but it also raises concerns about economic dependency and the risk of Neo-colonial dominance. Their

relationship dates back to 1971 and has seen China invest $80 billion into Nigeria's oil and gas industry by 2016.

The five principles agreed upon by Nigeria and China in 1971 include mutual respect for sovereignty, non-

aggression, non-interference, sovereign equality, and peaceful coexistence. The partnership facilitates the

transfer of knowledge and skills from Chinese experts to Nigerians, enhancing local capacity. Chinese capital

inflows create jobs through large-scale infrastructure projects and bring valuable technological expertise and

innovation to Nigeria. However, the adverse impacts of Sino-Nigerian relations include the influx of cheaply

made, low-quality products and China's withholding of technological know-how, which limits Nigeria's capacity

for technological advancement.

The Federal Ministry of Finance (2024) stated that Nigeria and China have reaffirmed their commitment to

deepening economic cooperation, strengthening bilateral ties, and fostering sustainable development at the

inaugural China-Nigeria Economic Cooperation and Trade Conference. The event, held in conjunction with the

2024 Forum on China-Africa Cooperation (FOCAC), aimed to lay the groundwork for unprecedented

collaboration and growth between the two countries. The event underscored the significance of South-South

cooperation in Nigeria's pursuit of sustainable development goals, as well as the signing of a $3.3 billion

agreement to develop the Brass Industrial Park and Methanol Complex. Both nations reiterated their commitment

to joint infrastructure projects, including roads, bridges, and energy systems, to accelerate industrialization and

drive long-term economic growth in Nigeria. Financial and security cooperation was also a key focus, with both

countries agreeing to enhance intelligence sharing to combat money laundering and financial crimes. Key

infrastructure and security initiatives are seen as pivotal to achieving Nigeria's economic objectives under the

Renewed Hope Agenda and advancing China's Belt and Road Initiative. The partnership will undoubtedly propel

Nigeria's economic agenda forward while reinforcing China's Belt and Road Initiative.

Sino-Nigeria Relations (Infrastructural development and Diplomatic Agreement).

Early commercial and diplomatic agreements, especially in the 15th century, marked the beginning of Sino-

African contacts, although this relationship cooled and left little historical evidence. However, the modern

relationship took a turn in the 20th century, with a focus on solidarity during the African independence

movements, and with China’s focus on Nigeria to boost its global power and economic development, thereby

enhancing Nigeria's economy alongside. In 2000, the Forum on China-Africa Cooperation was established under

the agreement between China and Nigeria. Under this cooperation, it was stated that the relationship between

the two countries was experiencing rapid growth and aiding development. In 2002, an agreement was signed for

the establishment of a Nigerian Trade Office in China, which took effect in 2006 and led to the Nigeria-China

investment forum with a focus on facilitating and promoting trade, infrastructure, agriculture, manufacturing,

technology, investment, the creation of jobs, and improving livelihoods (Opusunju et al., 2020). In 2004, Nigeria

and China signed an oil mining lease agreement in the Niger Delta. In 2005, Nigeria also agreed to supply China

with 30,000 barrels per day of petrol, worth about $800 million. The first strategic partnership Memorandum of

Understanding was signed by China in 2006 for trade promotion and investment development in Nigeria. The

first railway in Nigeria came into being with the help of China’s innovative technology and management

strategies, focusing on the Abuja-Kaduna railway line, which was inaugurated as part of the country’s railway

renovation initiative to reduce strain on the country’s roadways. This endeavor promoted the development of

railways in other Nigerian states.

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China and Nigeria’s Railway Investment Record.

Railway Line

China’s Investment Nigeria’s

Investment Duration

(kilometers)

(USD)

Abuja-Kaduna

Kaduna-Kano

Portharcourt-Maiduguri

Ibadan-Kano

$1.5Billion

$254.76Million

$2.550Billion

$3.975Billion

$1.3Billion

$1.6Billon

$500Million

$917Million

$450Million

$795Million

$200Million

$182Million

$390Million

186.5KM

203KM

1,443KM

2,733KM

1,400KM

156KM

Lagos-Calabar

Lagos-Ibadan

Abuja-Warri

$2.925Billion

549,2KKM

Source: Author’s Compilation.

However, the strategic agreement between the two countries granted each nation unfettered access to the other's

marketplaces for its goods and services. The oil infrastructure project was carried out under a public-private

agreement, including the Nigerian National Oil Corporation (NNPC) and the China State Construction

Engineering Corporation (CSCEC). However, it was ultimately canceled due to widespread corruption in the oil

bidding process; the oil-for-infrastructure program was then replaced with oil-for-cash policies. Nigeria and

China’s oil infrastructure agreements were later assessed by President Umar Musa Yar’Adua in 2007 to aid their

implementation, after the report from the Chatham House disclosing that Nigeria lost up to $6 6billion in failed

oil deals with China, as no follow-up tactics were put in place to implement and maintain the agreements;

therefore, the contracts were suspended. In that same year 2007, Nigeria listed a seven point agenda that was

laid out to ensure the realization of vision 20:2020 that was centered on wealth creation, land tenure reforms,

education and human capital development, national security, food security, power and energy, transportation

sector, this agenda is believed to be achieved by the formation of bilateral relation with China aimed to reduce

poverty. In 2009, a $311million agreement was signed to develop the cooperation in communication and space

programs, with China’s assistance in launching the Nigeria communication satellite known as the Nigcomsat–1,

under the Xichang Satellite center in China, the first communication satellite center was later launched in Nigeria

in 2011 making it the first communication satellite in Central Africa, making Nigeria the 4th largest trading

partner to China. In the same year, the Lekki Port Lagos Free Trade Zone Enterprise Limited was established, a

special-purpose vehicle and joint venture responsible for the Lekki Deep Water Port, created as part of the

concession agreement with the Nigeria Ports Authority (NPA). Nigeria receives more than $ 3.1 billion in

Infrastructure loans from the China Development Bank. About 95% of the building contracts of Nigeria's Ports

and Railroads had gone to Chinese state-owned construction firms, China Harbour Engineering Company

(CHEC) and China Civil Engineering Construction Corporation (CCECC) (Ajah and Onuoha, 2023). China and

Nigeria also signed an agreement on the reciprocal establishment of cultural centers, leading to the establishment

of a Confucius Institute in 2012 at the University of Lagos and Nnamdi Azikiwe University. By 2013, the

Nigerian cultural center was also established in Beijing to serve as a platform for promoting Nigerian culture,

arts, and heritage in China, to facilitate cultural exchange programs to enhance mutual understanding between

both countries. During the same year, about 80% of Nigeria’s economy was dominated by Chinese investments,

as the BRI was initiated. China has also boosted its investment for infrastructure development, Nigeria on the

other hand seem to be benefitting from the implementation of this plan by having access to much needed

infrastructural funds, in which Nigeria has signed several BRI credit facilities, also three loan agreements was

struck during this year, these agreements include a $500million contract for the Abuja Light Rail Project with

an $100million contract for the creation of four airport terminals throughout the nation and a $500million deal

for the growth of connectivity among Nigeria’s government department through the galaxy backbone (NICAF,

2013). A $20 billion Memorandum of Understanding between the Chinese Ministry of Energy and the Nigerian

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Ministry of Energy was signed to produce 20,000 megawatts of electricity, which was implemented in 2013

following President Goodluck Jonathan's visit. From 2014 to 2016, according to the National Bureau of Statistics

(NBS) stated that in this year Nigeria seem to record more on trade deficit worth of 6trillion Naira than an

agreement, with Nigeria’s import bill of 29.91trillion Naira and China’s accounted for 6.41trillion Naira profit,

by 2017 other forms of agreements began to surge up, the office of Taiwan situated in Abuja was requested by

the government to be moved to Lagos as a result of the undergoing administration to make Abuja the capital of

Nigeria, Taiwan office was requested to rename it office in Lagos from Business Delegation of the ROC to the

Trade Representative Office of Taipei with the sole aim to represent the interest of Taiwan’s government and to

serve and protect Taiwanese expatriate in Nigeria which functioned as the de facto embassy, by this agreement

Nigeria became Taiwan’s Third largest trading partner in the African continent, this partnership brought other

forms of benefit to Nigeria such as scholarship to qualified Nigeria Scholars was granted to enable them study

in Taiwan higher institution. In 2018, Chinese companies invested about $20Billion in over 218 firms in Nigeria

that concentrated on industrial sector, also Nigeria signed an agreement with China to purchase two

communication satellites with funds from the export and import Exim Bank of China worth about $550million,

this satellite was manufactured by China’s Great Wall, to enable Chinese companies take an equity stake in

NigComSat, which is a satellite company owned and managed by the Nigerian government. In 2019, the People’s

Bank of China and the Central Bank of Nigeria signed a currency swap agreement to enable the exchange of

Yuan and Naira to facilitate direct trade and investment between both countries, reduce transaction costs, and

speed cross-border payments. However, the swap deal had long been overdue, but was renewed under President

Bola Ahmed Tinubu's administration, which sought to stabilize the Yuan and Naira currencies. By mid-2019,

China had provided about 500 Nigerian students with scholarships for training in space engineering (Shinn et

al., 2023). However, the infrastructure development project initiated in Nigeria with China’s investment has

placed Nigeria under a $1.5 billion loan to execute the project for the four airports at Lagos, Kano, Abuja, and

Port Harcourt, which was later inaugurated in 2025.

However, the educational system also facilitated China’s diplomatic agreement with Nigeria. The People's

Republic of China's consulate general, in collaboration with the Lekki Free Zone Development Company in

Nigeria, implemented initiatives to introduce Chinese culture to the Nigerian educational system. The Confucius

Institute was established in Nigeria in response to growing interest in learning about China’s culture. Several

Nigerian institutions provide Chinese degrees. In March 2008, Nnamdi Azikiwe University became the first

institution to launch this course, and in June 2008, Bayero University Kano (BUK) also did so by signing a

Memorandum of Understanding to implement the degree at the institution formally. In 2009, the University of

Lagos also established it as a degree program within its institution, while the University of Ilesa's institution of

Chinese studies came into being following a senate approval in February 2025 in conjunction with the Chinese

government. In 2024, the Chinese government embarked on the innovations of school, and also awarded over

17,000 scholarships to students to train them to master necessary skills for the job market, alongside the

Confucius Institute scholarship, which aimed to help learners acquire a deep understanding of China’s culture (

Emmanuel and Xu Li Hua 2019, Sunny 2019)

Sino-Nigeria Relations (Trade)

China-Nigeria relations have maintained various trade/commercial ties following the signing of the Joint

Communique establishing Diplomatic Relations in 1971 (Bekele, 2020). Since 2000, the trade relation made

China a major trade partner with Nigeria, in 2000 and 2010 Nigeria economy was being affected by the presence

of China that boosted their trade relation from $2billion to $18billion due to its primarily exports of crude oil,

petroleum gas, copper, and tin ores while other exports that consist of sesame seeds, cocoa, beans and cashew

nuts, Nigeria’s raw export to China includes; raw hides and skins, salt, sulphur, earth, stone, plaster, lime,

cements etc.

Ever since, their trade relations have developed from a smaller scale to a larger trade investor scale. China had

transformed Nigeria into a net exporter of crude oil by 2004, and in 2006, bilateral trade volume was

approximately $3.13 billion, with China’s exports to Nigeria around $280 million. In 2008, trade between the

two countries increased by $7.2 billion. China's surplus of $2.52 billion may have likely destabilized Nigeria’s

economy, but there are more benefits that Nigeria seems to derive from its trade relation with China (Emehelu

and Oboreh, 2022). In 2009 and 2010, it increased by $7.3 billion and $7.7 billion, respectively. By 2012, Nigeria

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exported more crude oil to China, and during this period, China solely owned 30 Joint Ventures and companies;

the majority of these companies are engaged in power, oil, gas, technology, and many more in Nigeria. A $1.1

billion trade imbalance was reported by Nigeria in 2021, following a NGN588.7 billion trade deficit in 2020,

after a NGN362.7 billion trade surplus in December 2019. As a result, shipments fell to 33.4%.

Nigeria's total trade imbalance in 2020 was NGN7.375 billion, whereas its 2019 surplus was about NGN2.232

billion. The widening trade deficit has been a challenge for Nigeria in maintaining a sustainable trade position.

In 2020, the COVID-19 pandemic also affected global trade, leading to fluctuations in oil prices. This outbreak

contributed to a shift in the trade balance, resulting in a debt of NGN588.7 billion. The first-quarter data from

the National Bureau of Statistics (National Bureau of Statistics, 2022) shows that at the end of 2021, the trade

imbalance had risen to $ 23 billion, in favor of the Chinese government. By 2023, Nigeria’s total crude petroleum

exports reached about $43.5billion. In 2024, the Minister of Finance Mr Edun had reaffirmed on Nigeria’s

commitment to deepening economic cooperation during the inaugural China-Nigeria Economic Cooperation and

Trade conference held in Beijing (China) alongside the 2024 Forum on China-Africa Cooperation (FOCAC),

President Bola Ahmed Tinubu addressed this matter by stating his dedication to facilitate increased investment

that led to the signing of $3.3billion agreement to develop the brass industrial park and methanol complex, a

project aimed to boost Nigeria’s industrial output, there were about 54 programmes and projects that was agreed

upon in Memorandum of Understanding signed by the two countries during the year, these projects consist of

mining manufacturing, infrastructure, education, health care, agriculture and technology (Federal Ministry of

Finance, 2024).

China leverages revenues from its cooperation with Nigeria, mainly from oil exports, to invest in its own

domestic growth through strategic state interventions, technology acquisition, and infrastructure projects. This

is part of a broader economic strategy that involves embracing foreign technology, upgrading industries, and

boosting local manufacturing, which, in turn, fuels economic growth and creates opportunities for international

investment and trade. However, their goals in Nigeria seem promising, but the debate on how it has affected

Nigeria's economic stability under theoretical review is stated below:

Theoretical Review

The diplomatic relationship between China and Nigeria can be understood and analyzed using a range of

diplomatic theories. One such theory is the capitalist theory, which illustrates the contrasting outcomes of the

two diplomatic nations' rational choices. This theory, propagated by Adam Smith, stressed that countries develop

for their own self-interest rather than for mutually beneficial economic relationships (D’anieri, 2021). The theory

suggests that despite multiple economic indicators between two mutually vested countries, the outcomes cannot

be evenly distributed, with one nation potentially benefiting more than the other (O’brien and Williams, 2020).

In the context of the China-Nigeria relationship, capitalist theory plays a crucial role in understanding the

economic dynamics between the two nations. This relationship is characterized by China's growing influence in

Africa, marked by substantial investments in infrastructure, trade, and technological exchange in Nigeria.

Capitalism, as a prevailing economic system, emphasizes private ownership, free markets, and competition, and

its impact on this bilateral relationship can be assessed through several key facets.

The capitalist desire for new markets and resources drives Chinese investments in Nigeria. The influx of Chinese

companies into Nigeria can be seen as a strategy to access abundant natural resources, such as oil and minerals.

This aligns with capitalist principles, in which companies seek to maximize profits through resource acquisition

and expansion into emerging markets. China’s investment in infrastructure, such as roads and railways, reflects

a capitalist approach to facilitating smoother trade routes and enhancing the economic growth potential for both

countries. This shows the Chinese government supports its firms in international markets. In Nigeria, Chinese

state-owned enterprises operate in various sectors, benefiting from government backing and favorable policies

(McNally, 2022). This illustrates a contrasting approach to capitalism compared to Nigeria's more liberalized

market environment, where private enterprises dominate without substantial state backing.

Another applicable theory is neo-colonialism. Popularized by Kwame Nkrumah, neo-colonialism holds that, in

international relations, dominant states exert indirect control over lesser states by enticing them with globalized

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tools such as financial aid, infrastructure, technology, and communication to advance their self-serving interests

(Roach, 2013). By attracting nations with ulterior motives, dominant countries gain access to their markets,

labor, and raw materials. For major powers, foreign relations are intended to advance and protect their national

interests abroad, often with little regard for the detrimental impact on those countries.

As is evident, China's engagement with Nigeria is multifaceted, encompassing trade, investment, and

infrastructure development. The bilateral relationship has been strengthened through various agreements, with

China positioned as a crucial partner in Nigeria’s modernization efforts. This aligns with neoliberal ideas that

advocate for foreign investment as a catalyst for national development (Pan, 2022). Chinese investments in

Nigeria's infrastructure, including roads and energy projects, reflect the neoliberal emphasis on physical capital

as essential for enhancing productivity and fostering economic growth.

However, the implementation of neoliberal policies in Nigeria also raises questions about sovereignty,

governance, and social equity. Critics argue that these policies often prioritize economic efficiency over social

welfare, leading to disparities in wealth and access to resources. In the China-Nigeria nexus, this dynamic is

evident in how Chinese companies operate in Nigeria, sometimes prioritizing profit maximization over local

community benefits. Furthermore, the neoliberal approach promotes deregulation and liberalization, which may

empower foreign businesses at the expense of regional industries. In Nigeria, this has led to concerns about the

implications for domestic entrepreneurship and job creation, as local companies may struggle to compete with

foreign firms backed by state resources and favorable policies.

The neoliberalism theory provides a lens through which to analyze the China-Nigeria relationship, highlighting

both the economic opportunities and the challenges that come with such engagement. It underscores the need

for Nigeria to balance the benefits of foreign investment with the need to protect local industries and ensure that

economic growth translates into broader social benefits.

International business ethics provide a normative framework for evaluating foreign investment and corporate

behavior in host countries. This framework emphasizes corporate social responsibility (CSR), labor rights, and

environmental stewardship. The application of Sino-Nigerian relations highlights tensions between profit-driven

investment models and the protection of workers and communities in Nigeria.

Although the relationship between these two countries over the past 25 years has exhibited economic growth,

infrastructural development, and investment agreements. Nevertheless, these theories have made it known that

their relations seem to experience an imbalance, which is accompanied by challenging impacts and opportunities

that have affected their diplomatic/trade relations; these effects are seen below;

1.

Persistent Trade Imbalances: The two nations' bilateral commerce increased exponentially after Nigeria

joined a trade and investment promotion and protection treaty in 2000. This deal quadrupled Nigeria's exports

to China. Nigeria’s exports to China remain heavily concentrated in oil and primary commodities, making it

impossible for them to keep up with Chinese exports. At the same time, Chinese-manufactured goods dominate

Nigerian markets. This imbalance has undermined the growth of domestic industries and created vulnerability

to external economic shocks to date. The Manufacturers Association of Nigeria claims that a trade imbalance

between Nigeria and China remains unresolved to date. Given that Nigeria shipped goods to China totaling

approximately NGN714.97 billion over four years, the trade imbalance between 2013 and 2016 exceeded NGN6

trillion. If Nigeria's exports are less than its imports from China, the trade deficit will be NGN5.70 trillion. Many

manufacturing companies, including those in the clothing and textiles sector, have ceased operations as a result

of Nigeria's government's deficit, and the trade deficit is likely to persist unless Nigeria decides to switch to

domestically produced goods.

2.

Debt and Financial Dependence: Heavy reliance on Chinese loans and currency swap agreements

increases Nigeria’s fiscal vulnerability. Without adequate monitoring and diversification, repayment obligations

could hinder domestic investment and social spending.

3.

Human Capital Development: Limited technology transfer and poor working conditions in Chinese-

managed enterprises restrict sustainable industrial capacity building and workforce development.

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4.

Geopolitical Implications: While China’s engagement demonstrates successful South-South cooperation,

it also reinforces structural dependency patterns, aligning with predictions of dependency and Neo-colonial

theory. Strategic policy interventions are required to balance benefits and risks.

5.

Neglect of Nigeria’s local industry: The influx of cheaper Chinese goods and their importation to Nigeria

has led to a shift in the local industry. The inability of small and medium-sized businesses to produce goods that

Nigerians will consume has slowed the growth in the domestic manufacturing sector, resulting in limited local

employment opportunities.

6.

Employee’s Discrepancy: Nigerian workers in Chinese enterprises frequently endure dehumanizing,

unlawful, and dangerous working conditions. Human rights violations in Chinese enterprises are commonly

attributed to cultural differences. These issues are exacerbated by Nigeria's inadequate workplace inspections

and lax enforcement of labor laws, which suggest that profit is prioritized over compliance with environmental

and labor laws.

Key Findings Summary

Area

Findings

Implications

Trade

Rapid growth ($2B→$43.5B, 2000–2023)

Trade imbalances

Infrastructure Railways, ports, airports, and industrial parks Short-term growth, limited local participation

Debt

Loans >$1.5B, currency swap deals

Fiscal vulnerability, dependence on Chinese

financing

CONCLUSION/ RECOMMENDATIONS

To optimize Nigeria-China relations and mitigate negative consequences, the following strategies are

recommended:

Economic and Trade Policy

Diversify exports beyond oil to include agricultural products, manufactured goods, and technological services

to reduce trade imbalances. Promote local content policies to encourage Chinese enterprises to source materials

and labor locally. Implement protective measures for nascent industries to compete with Chinese imports without

violating WTO rules.

Debt Management and Financing

Negotiate more favorable loan terms, including more extended grace periods and lower interest rates. Explore

alternative funding sources, such as the World Bank, the African Development Bank, and public-private

partnerships, to reduce dependence on Chinese loans. Prioritize loans for high-return infrastructure and industrial

projects that generate revenue to support debt service.

Labor and Human Capital Development

Enforce strict labor regulations to protect Nigerian workers in foreign enterprises. Establish joint technology-

transfer and skills-development programs to enhance the domestic workforce. Promote capacity building in

managerial and technical roles for Nigerian nationals to reduce reliance on Chinese expertise.

Transparency and Governance

Introduce joint oversight committees with civil society participation to ensure accountability in project

implementation. Publicly disclose loan agreements, project terms, and expected outcomes to reduce corruption

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ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

and mismanagement. Monitor and evaluate all major infrastructure and investment projects to ensure alignment

with Nigeria’s long-term development strategy.

ACKNOWLEDGEMENTS

The author is grateful to Emeka Ephraim for the editing of the manuscript and would further like to thank Onyeka

Chukwudozie and Joachim Chukwudi for their constant assistance and opinions with regard to this article.

Funding

The author received no financial support for the research, nor for the publication of this article.

ORCID ID

Chukwudozie Chioma Delight https://orcid.org/0009-0003-3074-2187

Author biography

Chukwudozie Chioma Delight is a Nigerian graduate of Nnamdi Azikiwe University with a degree in History

and International Studies. Her research focuses on global politics, and international affairs, with a particular

emphasis on economic sustainability, and societal development-oriented engagement.

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