| This paper examines the impact of China Nigeria trade relations on Nigeria from1997to2009Our world today is a ’global village’ given the extraordinary level of interconnectedness of economic, and trade forces that fill contemporary international system. China and Nigeria relate internationally in the aspect of business to ensure growth and development.The paper recognizes the existence of a global environment that is deeply embedded in interdependency, and the necessity for Nigeria to minimize the adverse effects of globalization while harnessing whatever its benefits for national development. China Nigeria trade relations has continually increased year by year.Many of the producers reveal that Nigeria is a major market outlet for their products, while some of them also indicated foreign market outlets including China. A large proportion of the producers pointed out that competition from various markets (within and outside Nigeria) have been destructive to their activities. Based on the above findings, some recommendations were made to the various stakeholders including the government, consumers, and manufacturers/exporters. China gets Oil/petroleum resources from Nigeria and this trade has brought about an improvement in Nigeria’s GDP. It suggests that Nigeria should completely restructure its policies with china in order to attain more benefits from their trade relation; Nigerians have not fully capitalized on the potential benefits.Far more needs to be done to expand policy creation, institution building, human capital, entrepreneurship, and the culture and leadership capabilities to maximize gains. Most importantly, Nigeria needs to develop a comprehensive strategy to more effectively balance the engagement of China and the West to leverage its own strength and create a plan for sustainable development that resonates with its citizen. This paper endeavors to discuss the role of trade with China in Nigeria’s economic structure and performance. As a preamble, the growth performance of China and Nigeria in terms of total real output and per capita output. China and Nigeria are building one of Africa’s largest free trade zones in the commercial capital, Lagos Nigeria. Chinese companies will use the facility to manufacture goods for export throughout Africa. Nigeria and China are building a16,000hectare free trade zone to develop local manufacturing and reduce Nigeria’sSince1971when China and Nigeria started their bilateral relation till present there has continually been an increase in import materials into Nigeria, because these goods are affordable and for retailers, are able to make reasonable gains from selling Chinese products. Nigeria imports a lot of products from china, because of this; Nigeria has been facing a serious trade deficit. Trade deficit is an economic measure of a negative balance of trade in which a country’s imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign market. Nigeria facing serious trade deficit started to restrict some goods from being imported from China in order to patronize local producers in Nigeria this policy caused the Chinese people to smuggle goods into Nigeria. The Question of is China Nigeria relation is a win win situation would be answered along with other questions. A lot of complains have been made about Chinese products by the Nigerian retailers one of which is about the quality and also that the Chinese people have turned Nigeria into a dumping ground for their inferior and low grade goods, but despite that fact, Nigerians still patronize Chinese product increasingly everyday because the price of the goods are cheap. Nigerian consumers and government gain a lot from the import of Chinese goods because a lot of tax is paid to the customs offices for importing goods and this money is usually used to develop the country on the other hand, Nigerian producers and workers should lose particularly if most of the imports are import competing final products with Chinese goods since this implies the market share of Nigerian producers would shrink and lead to excess capacity and shedding of workers... |
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