Sino-Nigerian relations

The bilateral relations between the Federal Republic of Nigeria and the People's Republic of China have expanded on growing bilateral trade and strategic cooperation.

Development of bilateral relations

Nigeria and the People's Republic of China established formal diplomatic relations on February 10, 1971.cite web |title=China launches satellite for Nigeria |url=http://nm.onlinenigeria.com/templates/?a=261&z=9 |publisher=OnlineNigeria.com |date=2004-10-28 |accessdate=2008-06-21] cite web |title=Chinese, Nigerian presidents agree to promote strategic partnership |url=http://www.newsgd.com/specials/huvisitfivenations06/huvisitfivenations06news/200604270017.htm |publisher=NEWSGD.com |date=2006-04-27 |accessdate=2008-06-21] Relations between the two nations grew closer as a result of the international isolation and Western condemnation of Nigeria's military regimes (1970s-1998). Nigeria has since become an important source of oil and petroleum for China's rapidly-growing economy and Nigeria is looking to China for help in achieving high economic growth; China has provided extensive economic, military and political support.cite web |title=Nigeria gets $1bn China rail loan |url=http://news.bbc.co.uk/2/hi/business/5005510.stm |publisher=BBC News |date=2006-05-22 |accessdate=2008-06-21] cite web |title=China and Nigeria agree oil deal |url=http://news.bbc.co.uk/2/hi/business/4946708.stm|publisher=BBC News |date=2006-04-26 |accessdate=2008-06-21] In 2004 and again in 2006, Chinese President Hu Jintao made state visits to Nigeria and addressed a joint session of the National Assembly of Nigeria. Both nations signed a memorandum of understanding on establishing a strategic partnership.cite journal |last=Taylor |first=Ian |year=2007 |month=May |title=Sino-Nigerian Relations: FTZs, Textiles and Oil |journal=China Brief - Jamestown Foundation |volume=7 |issue=11 |url=http://www.jamestown.org/china_brief/article.php?articleid=2373438 |accessdate=2008-06-22] China has supported Nigeria's bid for a seat in the U.N. Security Council.

trategic cooperation

Reacting to the hesitation of the United States and other Western nations in providing military aid in fighting insurgents in the oil-rich Niger Delta to protect Nigeria's oil resources, the Nigerian government has developed close military cooperation with China, which has supplied arms, equipment, training and technology to the Nigerian armed forces.cite web |title=Nigeria turns to China for defence aid |url=http://www.ft.com/cms/s/0/ef8dbc30-a7c6-11da-85bc-0000779e2340.html |publisher=Financial Times |date=2006-02-27 |accessdate=2008-06-21] Both nations also signed a USD 311 million agreement to develop cooperation in communications and space programs;cite web |title=China launches satellite for Nigeria |url=http://www.msnbc.msn.com/id/18654107/ |publisher=MSNBC |date=2007-05-14 |accessdate=2008-06-21] China helped develop and launch the Nigerian communications satellite (NigComSat-1) by 2007 to expand cellular and internet networks in Central Africa.cite web |title=China launches Nigerian satellite |url=http://news.bbc.co.uk/2/hi/africa/6653067.stm |publisher=BBC News |date=2007-05-14 |accessdate=2008-06-27] cite web |title=China Builds and Launches a Satellite for Nigeria |url=http://www.washingtonpost.com/wp-dyn/content/article/2007/05/13/AR2007051301264.html|publisher=The Washington Post |date=2007-05-14 |accessdate=2008-06-27]

Commerce

Bilateral trade reached USD 3 billion in 2006 – up from USD 384 million in 1998. During Chinese President Hu Jintao's visit in 2006, China secured four oil drilling licenses and agreed to invest USD 4 billion in oil and infrastructure development projects in Nigeria, and both nations agreed to a four-point plan to improve bilateral relations – a key component of which was to expande trade and investments in agriculture, telecommunications, energy and infrastructure development. Furthermore, China agreed to buy a controlling stake in the Kaduna oil refinery that would produce 110,000 barrels a day. Nigeria also promised to give preference to Chinese oil firms for contracts for oil exploration in the Niger Delta and Chad Basin. In 2006, China also agreed to grant a loan of USD 1 billion to Nigeria to help it upgrade and modernize its railway networks. In 2005 Nigeria agreed to supply PetroChina with 30,000 barrels a day of oil for USD 800 million. In 2006 the CNOOC purchased a share for USD 2.3 billion in an oil exploration block owned by a former defence minister. China has also pledged to invest USD 267 million to build the Lekki free trade zone near Lagos. However, the "flooding" of Nigerian markets with cheap Chinese goods has become a sensitive political issue, as – combined with the importation of second-hand European products – it has adversely affected domestic industries, especially in textiles, and led to closure of 65 textile mills and the laying-off of 150,000 textile workers over the course of a decade. Nigerian militants have also threatened to attack Chinese workers and projects in the Niger Delta.

References