NIGERIA-CHINA RELATIONS: A CRITICAL APPRAISAL OF THE POLITICAL, ECONOMIC AND CULTURAL BILATERAL RELATIONS FROM 1999-

2009

BY

OMOTERE TOPEN.C.E., B.Ed

MAY, 2011

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ABOUT THE AUTHOROmotere Tope attended Adeniran Ogunsanya College of Education, Otto- Ijanikin, Lagos from 2002 to 2006 (N.C.E. in Christian Religious Studies/ History) and holds a B.A. (Ed) in History and Diplomatic Studies from Tai Solarin University of Education, Ijagun, Ijebu-Ode, Ogun State. He has undergone training at the United States Institute of Peace (Online Training Program) with a certificate of course completion in Conflict Analysis.

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NIGERIA-CHINA RELATIONS: A CRITICAL APPRAISAL OF THE POLITICAL, ECONOMIC AND CULTURAL BILATERAL RELATIONS FROM 1999-

2009

ABSTRACT

The study traced the historical development of Nigeria-Chinese relations from 1999-2009 with emphasis on political and economic bilateral relations. Furthermore, the study discussed on 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. It also examined include politics, military and cultural bilateral relations between the two countries. 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.

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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 Policies from 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

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

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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 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

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agreement on the establishment of a Nigeria Trade Office in China and a China Investment Development and Trade Promotion centre in Nigeria. 3

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

a. increase China’s presence in Nigeria’s sectorb. expand Nigerian market for Chinese manufactured goods

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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 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

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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’ 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.

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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 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 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

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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 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

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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.

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.74. 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. Ibid7. M.S., Gregory, op.cit, p.128. L.Wong The Impact of Asian National Oil Companies in

Nigeria. London: Chatham House, 2009, p.19. M.S, Gregory, op.cit, p.12

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10. P. Utomi, China and Nigeria. Washington Centre for Strategic and International Studies, 2008, p.40

11. Ibid, p.4012. Ibid p.4213. B. Bukarambe op.cit, p.24014. Ibid pp241-25115. 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.2-817. P. Utomi, Op cit, p40-42

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