TABLE OF CONTENTS
PAGE
Title Page…………………………………………………………………………………………………………
Declaration………………………………………………………………………………………………………..ii
Certification ……………………………………………………………………………………………………..iii
Dedication…………………………………………………………………………………………………………iv
Acknowledgement……………………………………………………………………………………………..v
Table of content…………………………………………………………………………………………………vi
Abstract……………………………………………………………………………………………………………vii
CHAPTER ONE: INTRODUCTION
1.1 Background of the study………………………………………………………………..1
1.2 Statement of problem……………………………………………………………………5
1.3 Objectives of the study………………………………………………………………….6
1.4 Research Questions……………………………………………………………………….6
1.5 Research Hypothesis…………………………………………………………………….7
1.6 Significance of the study…………………………………………………………………8
1.7 Scope of study…………………………………………………………………………….8
1.8 Organisation of Chapters…………………………………………………………………8
1.8 Definition of Terms……………………………………………………………………….9
CHAPTER TWO: LITERATURE REVIEW AND CONCEPTUAL CLARIFICATION
2.0 Introduction…………………………………………………………………………….12
2.1Nigeria and China Economic Trade Relations………………………………………… 12
2.2Theoretical Frameworks…………………………………………………………………18
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction……………………………………………………………………………27
3.2 Research Design…………………………………………………………………………27
3.3 Research population……………………………………………………………………..27
3.4 Sample and Sampling techniques………………………………………………………..27
3.5 Data Collection Techniques………………………………………………………………28
3.6 Data Analysis Technique…………………………………………………………………28
3.7 Validity and Reliability of Instruments…………………………………………………..28
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Preamble………………………………………………………………………………….29
4.2 Presentation of Data Collected…………………………………………………………..29
4.3 Analysis of Data Collected ………………………………………………………………30
SECTION A: Background Characteristics of the Respondents………………………………30
SECTION B: Substantial Issues………………………………………………………………33
4.4 Discussion of Findings……………………………………………………………………41
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary…………………………………………………………………………………47
5.2 Conclusion……………………………………………………………………………….48
5.3 Recommendation…………………………………………………………………………52
Bibliography
ABSTRACT
The study traced the historical development of Nigeria-Chinese from 1999-2007 with
emphasis on economic bilateral relations. Furthermore, the study discussed the relationship
between Nigeria and 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. . Attention was also 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. Historical method or approach was employed in this study. Both
Primary and Secondary sources published were used by the researcher. The study established
that Nigeria‟s external relation with China has been beneficial to the two countries. Again, it
established that the relationship between Nigeria and China is a win-win strategy but this is
yet to be thoroughly maximized by the Nigerian government given the political, military,
technological and economic base of China as an emerging Super Power in international
politics.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Given the political complexities and the emergence of china as a great economic world
power, it becomes important for us as students of international relations to study the strategic
relationship between a “democratic” Nigeria and “undemocratic” China. This position
emerges out of what the year 1971 symbolized as a divide between two historical phases for
both Nigeria and China. For Nigeria, 1971 marked the close of the first ten years (1960-1970)
of its existence as an independent state, And by any account, that was a remarkable decade
for Nigeria. As a matter of fact, the course and impact of events in those ten years would have
been remarkable for any country in historical terms. For China, on the other hand, the year
1971 signified a historical benchmark because for the first time since 1949, it achieved
international recognition by attaining full membership of the united nations (UN) in complete
replacement of Taiwan which had occupied that seat as the official Republic of China
(ROC).Thus both Nigeria and China enjoyed a moment of diplomatic triumph from their
respective point of view. However, following China‟s economic growth in the 1980‟s,
Nigerian leaders began to look forward to a more serious economic engagement with China
(Bukaremba, 2005). Nigeria‟s first contact with China took place in 1960 when a Chinese
delegation, on the invitation of the Nigerian government, attended Nigeria‟s independence
celebrations. The delegation brought a message from Chinese leaders congratulating Nigeria
on the victory won by the Nigerian people in their struggle against colonialism. In February,
1971, Nigeria finally established diplomatic ties with China more than a decade after
independence. Both countries opened embassies in each other‟s capital within the year. The
Chinese government has described this relationship as a “win-win” situation” (Agubamah,
2014). The period between 1971 and early 1999 witnessed minimal diplomatic exchanges,
low bi-lateral trade relations, a near absence of Chinese Foreign Direct Investments inflow to
Nigeria.
With the inauguration of the former President Chief Olusegun Obasanjo in 1999, NigeriaChina relations began to deepen. The First Ministerial conference of the forum on ChinaAfrica cooperation was held in Beijing, China in 2000. The conference is believed to have
laid the foundation and set the pace for a new order that has witnessed a significant shift in
Nigeria‟s and Africa‟s foreign diplomatic and economic relations. 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. Also both
countries signed an agreement on the establishment of a Nigeria Trade Office in China and a
China Investment Development and Trade Promotion center in Nigeria in 2001. In 2004, the
volume of trade grew by 17.6 percent, with Nigeria‟s exports to China registering a growth of
330 percent. China‟s main exports to Nigeria are light industrial, mechanical and electrical
products ( Akongbowa, 2008). Soon after the Beijing conference, Sino-Nigeria relations
assumed a new dimension characterized by rapid and aggressive economic, cultural,
scientific, and educational cooperation, increasing Chinese Foreign Direct Investment (FDI),
aids/ grants, technical assistance as well as several sponsored training programs for Nigerian
officials. China has now emerged as Nigeria‟s and Africa‟s major development and trade
partner, having taken the place of Europe and North America in Nigeria‟s development
agenda.
Bilateral relations between the two countries intensified further during President Obasanjo‟s
second term in office, from 2003-2007.To further enhance the bilateral relations between the
two countries was the visit of President Hu Jintho and Prime Minister Wen Jiabo of China to
Nigeria between , 26th
-27th,April, 2006 and Obasanjo visiting China twice. During President
Hu‟s visit to Nigeria, he agreed with President Obasanjo to work on a strategic partnership
between the two countries.
They both agreed to establish an intergovernmental Nigeria-China investment forum which
was later founded in 2006.
The pattern of economic interaction between Nigeria and China is compressed to a mid- level
position. Both Nigeria and China have the West including (Japan) as their major trading
partners. Below this level they, jointly operate their own system of exchange where China has
the opportunity of exporting advanced industrial Goods from West and exporting its own
goods and technology to Nigeria. This flank is underpinned by the following agreements:
i)A bilateral trade agreement, signed on November 3,1972.This agreement expired in 1985.
But subsequently, the two countries exchanged a draft bilateral trade agreement with each
other through the diplomatic channel.
ii) A bilateral agreement on economic, scientific and technical cooperation. This was first
signed on November 12, 1972 and subsequently renewed on July 8, 1982 and April 1996.
iii) Agreement on cultural , and educational cooperation. This was first signed on November
20, 1981 and subsequently renewed under the implementation programmes of cultural and
education agreements on March 28, 1990.
.iv) May 1997 Agreements;
a) Reciprocal promotion and protection of investments.
b) Protocol on cooperation in electric power project in Nigeria.
c) Protocol on bilateral cooperation on steel industry.
d) Oil cooperation
v) Agreement on the establishment of Nigeria Trade Office in China and the China
Investment Development and Trade Promotion Centre in Nigeria signed on May 22, 2001.
Additionally, Nigeria and China operate one of the biggest projects between them-i.e the
$528.60 million contract of December 9, 1995 between the Federal Ministry of Transport and
China Civil Engineering Construction Corporation (CCECC) for the rehabilitation of the
Nigeria railway system. On the whole Chinese construction companies have been involved in
projects covering roads and bridges, ports, oil fields, bore holes, agriculture, and power
distribution and supply. Between 2003 and 2007, Nigeria was a top destination for Chinese
Foreign Direct Investment on the continent, second only to South Africa. Its attractions are
clear: vast energy reserves and a large domestic market of 150 million inhabitants with
growing disposable incomes.
1.2 STATEMENT OF PROBLEM
The foundation of Nigeria-China relations dates back to the early 1970‟s.Both countries
established formal diplomatic ties in February 1971. Ever since then, scholars of foreign
policies have produced research works on the bilateral relationship that exists between
Nigeria and China.
However, in as much as the relationship seems irresistible, the basic problem of sincerity of
intentions still plays a limiting factor. Thus it becomes important to look at how both sides
have benefitted from their relationship.
Analysis shows that hegemonic stance of china in international politics has allowed it benefit
more from relating with struggling African countries who usually because of their internal
politics stay at the bottom. Thus, given the internal dynamics of Nigeria‟s politics that
features corruption as its shortcoming and has overtime formed a cliché in the Nigerian
political milieu, the possibilities of achieving a win-win situation has really been hampered.
Flowing from the foregoing it becomes necessary to study the root and patterns of this
relationship which necessitated the reasons for the research. However it is therefore observed
that the problems faced by Nigeria from its economic relations with China are as follows:
The influx of allegedly sub-standard goods from China. This issue was taken up officially by
the standards Organization of Nigeria.
The other issue is China‟s steady trade surplus against Nigeria ever since recorded trade
between them began in the mid- 1950‟s. On the other hand China also has points of
complaint over doing business in Nigeria .One, the problem of insecurity arising from armed
robbery and pronounced social proclivity towards violence and lawlessness. The high cost of
operations due to inadequate power and water supply; the bad state of telecommunications
and infrastructure (i.e. roads and railway); poor police work as when reported crime
investigations do not yield any results and corruption.
1.3 OBJECTIVES OF THE STUDY
The research will attempt to:
1. Examine the roles played by both countries in strengthening bilateral relations
2. Evaluate the performance of both countries in economic bilateral relations.
3. Highlight challenges confronting Nigeria-China bilateral Relations.
4. Propose ways to achieve sustainable socio-economic development and self-reliance
through regional economic integration.
1.4 RESEARCH QUESTIONS
The research will further attempt to give answer to some questions like:
1. What are the roles and efforts of Nigeria and China in strengthening economic bilateral
relations?
2. How much has Nigeria and China performed in its economic and bilateral relations
attempt?
3. What are the challenges confronting Nigeria and China in its relationship attempt?
1.5 RESEARCH HYPOTHESIS
1 H: The relationship between Nigeria and China has definitely affected both nation‟s foreign
policies.
H: The relationship between Nigeria and China has not affected both nation‟s foreign
policies.
2 H: Nigeria‟s economy has benefitted from her relations with China.
H: .Nigeria‟s economy has not benefitted from her relations with China
3 H: NIGERIA-CHINA is not confronting any challenge in its relationship attempt.
H: NIGERIA-CHINA is confronting challenges in its relationship attempt.
1.6 SIGNIFICANCE OF THE STUDY
The study aims to enhance our general knowledge of the bilateral relations between Nigeria
and China most especially in the areas of economic bilateral relations . Owing to the
importance of development and growth to nations, Nigeria-China study becomes imperative..
Thus, this study becomes relevant to policy makers; foreign and internal, governmental
agencies, business thinkers, students, political and economic analyst to list a few. It will
further be useful as a source of information for further researchers in the academic field.
1.7 SCOPE OF THE STUDY
The study focuses on Nigeria- China‟s Economic relations from 1999-2007.
The research will cover key areas in Nigeria- China relations most especially its economic
ties. However, the research will be limited to the economic bilateral relations between the two
countries to a period covering 1999-2007.
1.8 CHAPTER ORGANIZATION
This thesis is presented in five chapters. (Chapter 1) provides a general introduction,
background of the study. Chapter2 provides further information on the conceptual and
theoretical framework. This is done to make the reader appreciate the relevance of the current
research especially in the Nigerian context. It further helps to deepen the entire conception of
the thesis and provide a specific context for the study. Also expands on the theoretical
background of the study and also reviews the literature on studies related to ours. The third
chapter presents the methodology of the study. The focus of the fourth chapter is to find the
analysis of the study .The final chapter (chapter 5), provides concluding discussions and
recommendations. Further, a summary of the main thesis of the study is presented, the
management implications of the study given and also the study limitations and
recommendations for management and for further academic research provided in the final
chapter.
1.9 DEFINITION OF TERMS
— Bilateral Relations: Relationship involving two groups or countries which could be
economic, political, military and cultural sectors.
— Treaty: A formally concluded and ratified agreement between states (countries).
— Cooperation: A situation in which people work together to do something.
— Self- assertion: The act of expressing or defending your rights, claims, or opinions in a
confident or forceful way.
— Investment: The outlay of money usually for income or profit.
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