Nigeria's Perspective Of China's Foreign Direct Investment And Its Impact On The Economic Growth Of The Country

China and Nigeria's relationship dates back to decades and the two countries have shared economic complementarities which includes major infrastructural deficiencies in Nigeria with huge investment needs and complimentarily China have developed one of the world's largest and most competitive construction industries with particular expertise in the civil works critical for infrastructural development most needed in Nigeria.In 2009,China surpassed other Continents as Nigeria's largest trading partner;with an investment value of US$166 billion in 2011,China not only invest in the construction and manufacturing sector of Nigeria,but gets a 3rd of its oil import from Nigeria.Despite this record,some economists,stakeholders and local entrepreneurs still see China's interest in Nigeria economy as a contentious issue,which has continued to raise speculations towards the investment pattern of China.This thesis consists of four chapters.Chapter One gives a general background of China's Investment in Nigeria including statement of the problem and objective for the study.Chapter two focuses on the reviews of relevant literatures and the theoretical framework adopted in this study.China's Foreign Direct Investment in Africa and particularly in Nigeria has been area of focus for may economist and investment experts and thus many studies have been carried out in this area.This research made an attempt to extensively review previous relevant literature on Chinese FDI in Nigeria in other to understand the distinguishing composition and characteristics of China's FDI from other countries.It discusses Business environment in Nigeria,FDI and the Nigeria Investment Policy;China and Nigeria Investment Relations.It also discusses the theoretical framework adopted in this study which are dependency theory which focuses on the several ways by which FDI of multinational cooperation distort developing countries economy;behaviorism theories which focuses on the actions and interactions among units by using scientific methods of observations to include quantification of variables whenever possible and the researcher adopted this theory in other to have a clearer understanding of the relationship between Nigeria's perspective of Chinese Investment and how it relatively impact on the economic growth of the Country.The last adopted theory considered Endogenous growth model theory,which explains that physical investment is not a measure of economic growth of a country but the effectiveness and efficiency in the use of these investments.Chapter three discusses the main arguments,which consist of the Five Part under the Subheading Structure and pattern of Chinese Investment in Nigeria,Trends and Characteristics of Chinese Investment,Impacts of Chinese Investment on economic growth of Nigeria and the Nigeria Prospects with a view to buttress the argument of my thesis on Nigeria's Perspective of Chinese Investment.This chapter describes the size,composition and pattern of the investment model of China.The various model of Chinese FDI in Nigeria has always been a focal issue to different authors but locally and internationally.Many suggested the positive aspects of FDI and some are of critical criticism of its operations in Nigeria.Attempts were made to discuss the view of different writers and scholars on the effect of FDI both positively and negatively in the developing countries generally and Nigeria in particular.To sum up the research,Chapter Four and Five reviews survey of the respondents from NIPC,Surveys of Opinion polls of RAND and PEW and Chapter Five presented discussions of findings from both primary and secondary data,made conclusions and policy recommendations.The biggest investment challenge in the relationship between China and Nigeria is that China is coming from a completely different political background that sets the government at the center stage of foreign economic relations.China seems to believe that working with government is sufficient to progress with business relations.This mindset requires adjustment,according to the primary data generated from survey of from responses of Investment experts from the Nigeria Investment Promotion Commission.Findings from this research points that China's relationship with Nigeria needs to factor in the Nigerian people and not only governments.Beneficiation,of course,is the responsibility of the recipient government and not the investor.” For that reason,voicing of discontent with activities of Chinese companies in Nigeria is rather an expression of Nigerians suffering from poverty than criticism of the Chinese.The discontent relates less to China than to the living conditions in Nigeria.Widespread complaints about the poor quality of Chinese products and a lack of consideration for the social context in Nigeria are another factor responsible for the varying perspective of Chinese Investment in Africa.And since FDI constitutes a key channel through which a foreign country's impact on host country's economic growth can be determine in a typical developing country like Nigeria;the level of investment impact on the economic growth will be dependent on the host country's perception towards the investor.