Political Economy of Nigeria-China Trade and Investment Relations, 2001–2013

Over the past several decades, the economies of the world have become increasingly connected through international trade, investment, and globalization, and the trade and investment relationship between Nigeria and China has grown markedly within this trend. Existing studies on Nigeria-China relations have concentrated largely on foreign aid, balance of trade, foreign direct investment, and trade policy, with most anchored-on dependency theory and paying comparatively little attention to the relationship's mutual benefits. This study examines the political economy of trade and investment relations between Nigeria and China to establish an understanding of the impact of the increasing volume of trade and investment between the two countries on economic development in Nigeria between 2001 and 2013. The study is anchored on the theory of complex interdependence and adopts a qualitative research design that relies on secondary sources of data drawn from official statistics, institutional reports, and scholarly literature. The study finds that the growth in the volume of trade and investment between Nigeria and China exerted a positive impact on economic development in Nigeria within the period reviewed, particularly through infrastructural financing, employment generation, technology transfer, and human capital development, despite a persistent trade imbalance in China's favor. The study recommends, among other things, that the Nigerian government constitute a dedicated coordinating body — drawing on scholars, officials, businesspeople and civil society — to prescribe strategies for optimizing the benefits of Chinese engagement.