Nigeria’s paved road to China

Early this month, Nigeria participated in the Forum for Africa-China Cooperation (FOCAC), a gathering aimed at cementing the existing bilateral ties between the continent and China in economic development while seeking new ways to forge ahead. The Nigerian delegation was led by President Bola Ahmed Tinubu, who has been exploring opportunities to heal the country’s economic wounds. Expanding his search to the world’s second largest economy was another opportunity to find the right pills for a long-lasting healing in infrastructure, agriculture, power, solid minerals, etc. 

China has been an active player in the Nigerian economy for a long time. With a trade volume of over $23 billion, we are the latter’s second largest trading partner in Africa. Our huge population points to huge potentials for even more trade, surpassing South Africa as the superpower’s largest trade partner on the continent. It is, therefore, not surprising that the Nigerian entourage was a high-powered one, consisting of the President and some of his cabinet ministers, as well as some state governors.

In and outside the FOCAC, Nigerian officials were able to sign on the dotted lines of various bilateral Memoranda of Understanding (MoUs) that signalled deeper cooperation between our two countries. A cursory look at the various deals that the federal and the state governments were able to cut showed that, when implemented, they would be expected to help Nigeria’s growth in the long run. 

A key menu in the President’s itinerary was the visit he made on Monday, September 2, 2024 to the headquarters of the China Railway Construction Corporation (CRCC), a key player in Nigeria’s infrastructure development, with a number of ongoing projects in the country. They include rail lines like the Abuja-Kaduna, the Kano-Abuja, the Kano-Maradi, the Ibadan-Lagos, and the Abuja Metro ones. During the visit, Tinubu promised to complete the Ibadan-Abuja-Kaduna-Kano railway segments to the satisfaction of Nigeria and West Africa at large. This multi-billion-naira project is funded through the China Development Bank based on renewed cooperation between Nigeria and China on the Belt and Road Initiative.

The President also visited the Huawei Technologies’ Beijing Research Centre, where the company announced the launch of DigiTruck, a mobile ICT classroom aimed at enhancing digital literacy in underserved communities in Nigeria. According to the Chairman of Huawei, Mr Liang Hua, the initiative would operate in 10 states annually, training at least 3,000 students each year. He also announced the company’s intention to build two major technology data storage centres in Lagos and Kaduna states, which would create employment and opportunities for more young people in Nigeria.

On Tuesday, September 3, Tinubu held a high-powered bilateral meeting with Chinese President Xi Jinping at the Great Hall of the People in Beijing, where the two leaders announced the elevation of China-Nigeria relations to a comprehensive strategic partnership, signaling deeper ties between the two countries. At the meeting, several MoUs were signed on various fields, such as the Belt and Road cooperation plan (which seeks to promote the implementation of the Global Development Initiative), economic development, application of the Beidou Navigation Satellite System, nuclear energy, peanut exports to China, and the news media.

On their part, the ministers and governors signed agreements on various projects. A few examples will suffice. The Minister of State for Petroleum (Gas) witnessed the signing of agreements for the Brass Industrial Park, Gas Gathering Pipelines and Associated Facilities, and the Methanol Complex Project between Brass Fertiliser and Petrochemical Company Ltd (BFPCL) and the China Road and Bridge Corporation (CRBC). The agreements involve three key projects with the potential of injecting about $3.3 billion into Nigeria’s economy, driving growth and innovation in the energy sector. 

Dele Alake, the Minister of Solid Minerals, witnessed the signing of an MoU worth $1 billion between Chart and Capstone Integrated Limited of Nigeria and its Chinese counterpart, Sinomach-Hea, a market leader in solid minerals development. The deal is for a new iron-ore-to-steel project planned for Kogi State, which has abundant deposits of iron ore and home to the Ajaokuta Steel complex. The Nigerian firm has a mining license approved by the Cadastral Office and was looking for a proven technical and financial partner. As such, the Chinese entity has come to its rescue.

Also, at the FOCAC, the Minister of the Federal Capital Territory (FCT), Nyesom Wike, signed an MoU with China Civil Engineering Construction Corporation (CCECC) for the provision and installation of solar street lighting in key areas in Abuja such as Maitama, Asokoro, Wuse, Central Business District, and Airport Road. He also signed an MoU with China Geo-Engineering Corporation Overseas Construction (CGCOC) for the completion of the Abuja Water Works project and the extension of clean water supply to Gwagwalada, Kwali and Kuje areas of the FCT. CGCOC also signed an MoU on solar street lighting which would cover Mabushi, Katampe, and Garki.

Another significant MoU was the one between the Lagos State government and China Harbour Engineering Company (CHEC) to implement the ambitious 68 km Green Line metro rail project in Lagos. This rail line that will run from the Lekki Free Zone to Marina is projected to carry over 500,000 passengers daily at launch, rising to over a million eventually. The Federal Government guaranteed the MoU through the Ministry of Finance Incorporated (MOFI), which will join CHEC in the design, financing, and construction of the project. Governor Babajide Sanwo-Olu had earlier signed an MoU with CCECC for the construction of the Lekki-Epe link bridge in the Lekki-Epe axis.

Also, on the sidelines of the FOCAC, Governor Uba Sani of Kaduna State signed an MoU with Huawei Technologies Company at its headquarters, on the Smart City Project. The project, when completed, is expected to help enhance security, efficiency and transparency in public service. Kaduna is one of the Nigerian states where CCEC has been most active in the last five years, building roads and bridges. The governor was able to persuade the company’s management, led by its global Vice President, Micheal Jiang, to invest more in the state.

Nigeria’s road to China appears smooth. We commend President Tinubu and the Nigerian delegation for their participation in the FOCAC. We urge them not to relent but to pursue the implementation of all the MoUs with zest. Nigeria is in a dire economic situation for far too long as it relied heavily on the West for help. China is an alternative road worth trying, especially as its role appears less exploitative than what has been the norm in the last several decades since Independence.