NIGERIA-CHINA RELATIONS: A CRITICAL APPRAISALOF THE POLITICAL, ECONOMIC AND CULTURAL

BILATERAL RELATIONS FROM 1999-2009

BY

OMOTERE TOPEN.C.E., B.Ed

MAY, 2011

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NIGERIA-CHINA RELATIONS: A CRITICAL APPRAISALOF THE POLITICAL, ECONOMIC AND CULTURAL

BILATERAL RELATIONS FROM 1999-2009

ABSTRACT

The study traced the historical development ofNigeria-Chinese relations from 1999-2009 with

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emphasis on political and economic bilateralrelations. Furthermore, the study discussed onrelationship between Nigeria and China in keyareas such as bilateral trade, oil and gas, powergeneration, rail transport system, roadconstruction, communication, manufacturing andretail loan finance and general free trade zone. Italso examined include politics, military andcultural bilateral relations between the twocountries. Attention was also given to the domesticfactors that shaped China’s relations with Nigeriaand how Nigeria views the changing role of China onthe African continents. Historical method orapproach was employed in this study. Both Primaryand Secondary sources published were used by theresearcher. The study established that Nigeria’sexternal relation with China has been beneficial tothe two countries. Again, it established that therelationship between Nigeria and China is a win-winstrategy but this is yet to be thoroughly maximizedby the Nigerian government given the political,military, technological and economic base of Chinaas an emerging Super Power in internationalpolitics.

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TABLE OF CONTENT

Title Page

Abstract …………………………………………vii

CHAPTER ONE

Introduction …………………………..…………………….1

Background to the Study……………………………………..1

Objectives of the Study……………………………………….3

Statement of the Problem……………………………………..4

Literature Review………………………….……….….……..5

Scope of the Study………………………….……….………..8

Significance of the Study………………………….…………8

Research Methodology………………………….……………9

End Notes………………………….………………….……..10

CHAPTER TWO

FOUNDATIONS OF NIGERIA AND

CHINESE FOREIGN POLICIES………..……………..…11

Conceptual Clarification of Foreign Policy………………….11

Nigeria’s Foreign Policy Objectives and

Instruments of Her Foreign Policy…………………………..12

Principles of Nigeria’s Foreign Policy…………………..…..14

Development of Nigeria’s foreign policy…………………….15

Instruments of Nigeria’s Foreign Policy………………….….17

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Chinese Foreign Policy and Instruments

of Her Foreign Policy……………………………………..…..18

Principles of the Chinese Foreign Policy……………………..20

The Instrument of the Chinese foreign policy ………………..21

Background to Nigeria-Chinese Relations……………..…….26

Nigeria-China Relations: A Review of Political Policiesfrom 1999 to 2007…………………………………………….29

Conclusion…………………………………………………….22

End Notes……………………………………………………...24

CHAPTER THREE

BILATERAL ECONOMIC RELATIONS BETWEEN NIGERIA AND CHINA……………………………………… 32Introduction…………………………………………..………… 32

Bilateral Trade Relations……………………………..………… 34

Bilateral Relations in the Oil and Gas Sector………..…………

36

Bilateral Relations in the Power Sector………..…………..…… 39

Bilateral Relations in the Rail Transport System…….…………

44

Bilateral Relations in Construction………..…………………… 47

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Bilateral Relations in Information and Communication

Technology..49

Bilateral Relations in Manufacturing………..…………..……… 53

Bilateral Relations in Finance………..……………………….… 55

CHAPTER FOUR

SOCIO-CULTURAL RELATIONS BETWEEN NIGERIA AND CHINASocial Relations between China and Nigeria………………....56

Aid Relations ………..……………………….………………. 58

China-Assisted Borehole Drilling and Water Supply Projects ..60

Donations to the Health Sector………..……………………….61

Chinese Grant of 30 Million RMB to Nigeria ………..…….… 63

Training Programmes Sponsored by the Chinese Government ….65

Education and Cultural Exchanges………..…………………… 67

EndNots………..……………………..….……………………… 69

CHAPTER FIVE

SUMMARY AND CONCLUSION……………………………71

Summary ……………………………………………………......73

Conclusion……………………………….……………………....75

Bibliography…………………………….……………..……….77

Primary Sources ……………………………..………………….77Secondary Sources…………………………….……………..….78

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CHAPTER ONE

INTRODUCTION

Background to the Study

The relationship between Nigeria and China was

cooperative and cordial, especially between 1999 and

2009. Prior to this time, Nigeria adopted a broadly

pro-western policy and did little to establish

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diplomatic relations with China. Formal diplomatic ties

between the two countries came into being in 1971,

barely a year after the end of the Nigerian Civil War

(1967-1970).

However, following China’s economic growth in the

1980s, Nigerian leaders began to look forward to a more

serious economic engagement with China.1

With the inauguration of the former President

Chief Olusegun Obasanjo in 1999, Nigeria-China

relations began to deepen. The first Ministerial

conference of the forum on China-Africa cooperation was

held in Beijing, China in October, 2000. Obasanjo did

not attend but senior Nigerian representatives did and

in the same year the China Civil Engineering

Construction Corporation (CCECC) was awarded a tender

to build 5000 housing units for athletes participating

in the eight All African Games in Abuja, which were

built 2. In 2001, the two countries signed an agreement

on the establishment of a Nigeria Trade Office in China

and a China Investment Development and Trade Promotion

centre in Nigeria. 3

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Bilateral relations between the two countries

intensified further during President Obasanjo’s second

term in office, from 2003 to 2007.

President Hu Jintho and Prime Minister Wen Jiabo

of China both visited Nigeria during this period and

Obasanjo visited Beijing twice4. During President Hu’s

visitation to Nigeria, 26th-27th, April, 2006, he agreed

with President Obasanjo to work on a strategic plan for

the future growth of bilateral relations to push

forward the strategic partnership between the two

countries 5.

To further enhance the bilateral relations between

the two countries, they both agreed to establish an

intergovernmental Nigeria-China investment forum which

was later founded in 2006 6. Obasanjo used his

influence as his own minister of Petroleum to secure

major oil blocs for Chinese firms.

These blocs awards entailed significant

infrastructure-building commitment for Chinese firms

across a range of sectors adding to the already growing

number of Nigerian projects in their hand since 1999.

On the Chinese side, the main aim of government

policy towards Nigeria were to

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a. increase China’s presence in Nigeria’s sector

b. expand Nigerian market for Chinese manufactured

goods

c. build common vision of global affairs with the

Nigerian government 7.

The Chinese government constantly pursued these

policies with vigor and some success was achieved for

institute three percent of China’s oil import came from

Nigeria.

Chinese Multinational Companies (MNCs) also won new

significant contracts in Nigeria during this period

particularly in construction telecommunication power

and transport, while the volume of Chinese manufactured

goods exported to Nigeria rose dramatically.

By the end of 2008, according to Chinese sources,

total Chinese investment in Nigeria stood at six

billion dollars 8.

Despite the benefit which the two countries

derived form this bilateral relationship, analysts have

argued that the relationship between Nigeria and China

was complex and was never going to be straight forward.

Nigerian officials have noted that there is an

unbalanced system in Nigeria-China relations in which

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the Chinese world become the dominant power while

Nigeria would lack the capacity to exert her influence

in political dealings 9 .

Similar short comings existed in the area of

technology transfer and job creation for Nigerian

citizen-public officials outside the foreign affairs

sectors complained that although Chinese business men

were more attractive partners because the development

gap is less daunting than with the west actual

technological transfer and job creation was low because

the Chinese imported their own labour to Nigeria10.

This created a debate among the public officials about

how Nigerian’s relation with China could be better

managed.

From the foregoing, it appears that Abuja-Beijing

bilateral relations were cordial between 1999 and 2009

except for a few instances where Nigerians complained

about poor Chinese labour policy and Chinese

substandard goods.

However, from 2007 onward, Nigeria-Chinese

relations faced a new challenge with the failed effort

of President Olusegun Obasanjo to secure a third term

in office. He campaigned for the late President Umar’

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Musa Yar’Adua who was eventually elected the President

in 2007. Yar’Adua, however, continued to review all the

agreement signed between Nigeria and China which mostly

resulted either in the suspension or cancellation of

these contracts.

Between 2007 and 2009, Abuja-Beijing relationship

was not totally cooperative as some Chinese companies

decided not to sign pact with the Federal Government

any longer but rather would partner with State

Government.

Given this background, this research focuses on

the Obasanjo’s “Oil for Infrastructures” policy and the

benefits which the Nigerian Government derived from

this policy from 1999 to 2007 and proceeds to suggest

possible solution to the ongoing imbalance in Nigeria-

Chinese economic diplomacy since the assumption of

President Yar’Adua to power in 2007.

Objectives of the Study

The purpose of carrying out this research is to

trace the historical development of Nigeria-Chinese

relations from 1999-2009 and then find out whether

these have really influenced the bilateral relationship

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which now exist between the two countries since

Nigeria’s transition to civilian rule in 1999.

Furthermore, the study seeks to provide relevant

information on Nigeria’s relationship with China in key

areas such as bilateral trade, oil and gas, power

generation, rail transport system, road construction,

communication, manufacturing and retail loan finance

and general free trade zone.

Other areas to be examined include politics,

military and cultural bilateral relations between the

two countries.

Attention will also be given to the domestic

factors that shaped China’s relations with Nigeria and

how Nigeria views the changing role of China on the

African continents.

Literature Review

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

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bilateral relationship that exist between Nigeria and

China.

Review of related materials on Nigeria-China

relations shows that there have been a cordial

relations between the two countries except between 1967

and 1970 when China supported the Biafran forces by

supplying them light arms against the Federal Military

Government of Nigeria 13 .

However, for the purpose of this study, works

relating to Nigeria- China relations between 1999-2007

are reviewed.

B. Bukarambe’s (2005) Nigeria-China Relations The

Unacknowledged Sino Dynamics, extensively focused on the key

areas of Nigeria-China relations, such as multilateral

organization etc, as factors driving the relationship

between China and Nigeria beginning from 1999 14. This

work is useful to this study because it touches

important areas that bring the two countries together.

However, Bukarambe’s work failed to address the areas

of non-state actors that shape to a large extent, the

relations between Nigeria and China.

A. Ogunsanwo’s (2008) A Tale of Two Giants Nigeria and China

traced the relationship between Nigeria and China in

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the 1960’s and examined how the Civil War 1967-1970

impacted negatively on the bilateral relations between

the two countries. More attention was given to

comparison of the policies adopted by the two countries

towards each other especially during the military rule

in Nigeria. Ogunsanwo also made attempt to discuss the

modern nature of Nigeria-China relation with emphasis

on “Nigeria Oil” and “China Aid”15. Despite Ogunsanwo’s

attempt to chronicle the major event that occurred in

Nigeria-China relations much is yet to be written on

the major projects and pacts signed between Nigeria and

China from 1999 to 2007.

M.S. Gregory’s (2009) Elephants, Ants and Super Powers:

Nigeria’s Relations with China is acknowledged as one of the

most comprehensive study on Nigeria-China relations.

Gregory considers economic and political relations

between Nigeria and China as the most important aspects

in the study of the two countries bilateral relations

up to year 2007. the rest of Gregory’s work centered on

the sectorial relations starting with the critical oil

and gas sector, and followed by power generating, rail

transport, construction, communication, manufacturing

and financial sectors 16.

17

However, areas yet to be covered in Gregory’s work

in the view of Nigerians towards Chinese goods-most of

which are inferior and substantial. Moreover, the grand

strategy of China in Nigeria especially in the oil

sector.

Another important work is Pat Utomi’s (2008) China

and Nigeria which examined the evolution of trade and

diplomatic ties between Nigeria and China particularly

from 1999 to 2007. Utomi’s work covered key economic

issues that were left untouched by other writers

especially the non-state actors in the economic

relations between the two countries, under study 17.

Although, Utomi’s work did not look at some important

areas i.e. military, culture, politics etc his work is

useful in providing details on the short comings of the

relationship between Nigeria and China from 1999 to

2007.

Despite the limitation identified in these works,

they are useful on the existing bilateral relations

between Nigeria and China from 1999-2007. This study

therefore seeks to fill the gap created by these early

researchers on Nigeria-China relationship from 1999 to

2007.

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Scope of the Study

This study focuses on Nigeria’s China’s relations

references from bilateral relations which existed

between 1964 and 1998.

The research will cover key areas in Nigeria-China

relations which include the economy, political,

military and cultural sectors. However, the research

will be limited to the bilateral relations between the

two countries to a decade covering 1999 to 2009.

Significance of the Study

This study will enhance our general historical

knowledge of the bilateral relations between Nigeria

and China especially in the areas of bilateral trade,

politics, military etc.

Research Methodology

This study adopts the historical method which

involves making use of primary sources which include

interview, government publications, official documents

relating to Nigeria-China relations from 1999 to 2007.

Moreover, this study depends on secondary sources such

as books, journals, conference proceedings and internet

sources which are to be explored to enrich this work.

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End Notes

1. B. Bukarambe “Nigeria-China Relations: The

Unacknowledged Sino-Dynamics” In J.O Ogwu (ed) New

Horizons for Nigeria in Would Affairs Lagos: Nigerian

Institute of International Affairs, 2005,p.257

2. M.S., Gregory Elephant Ants and Super Powers: Nigeria’s

Relations with China South African Institute of

International Affairs Occasional Paper, No. 42;

2009, p.7

3. Ibid p.7

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4. See for Instance, Newsgd.com: Chinese, Nigerian

Presidents Agree to Promote Strategic Partners

adopted from http//newsgd.com

specids/huvistivenations o6 new. Accessed.

20/03/2010

5. Ibid,

6. Ibid

7. M.S., Gregory, op.cit, p.12

8. L.Wong The Impact of Asian National Oil Companies in Nigeria.

London: Chatham House, 2009, p.1

9. M.S, Gregory, op.cit, p.12

10. P. Utomi, China and Nigeria. Washington Centre

for Strategic and International Studies, 2008,

p.40

11. Ibid, p.40

12. Ibid p.42

13. B. Bukarambe op.cit, p.240

14. Ibid pp241-251

15. A. Ogunsanwo “A Tale of Two Giants: Nigeria

and China in K. Ampiah and S.ds) Crouching Tiger,

Hidden Dragon. Scottville University of Kwu-Zulu-

Natal Press, 2008 pp 180-155

16. M.S, Gregory, op.cit, pp.2-8

17. P. Utomi, Op cit, p40-42

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