Nigeria - China Trade Relations: Oil Resource in Focus, 1990s - 2020 | Hasanuddin Journal of International Affairs

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October 17, 2024

Accepted

February 19, 2025

Published

February 21, 2025

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Abstract

This paper examines Nigeria foreign policy and business ethics, particularly its bilateral relations with China between 1990s and 2020. It further explores China’s interest in the oil sector. It argues that China’s quest for oil security has attracted it to many African countries. Although, Nigeria and China diplomatic relations began in February 1971, its relations were not sealed until 1999, when the military surrendered power to a democratically elected government. It explains that a number of bilateral agreements between the two countries endured China’s readiness to finance infrastructural development in Nigeria. This paper further evaluates the economic and trade links between the two countries and its impact on Nigeria economic performance. With the use of appropriate statistical data, integration of primary and secondary sources, the paper addresses the security challenges to China’s quest to penetrate Nigeria’s oil sector in the Niger Delta. It concludes that since China is the second largest importer of crude oil in the world, there is urgent need for Nigerian government to re-direct its foreign policy in order to ensure smooth relations with China. This would to a large extent enhance the acceleration of socio-economic development of the oil producing communities in Niger Delta and the country at large.

Keywords

Nigeria foreign policy crude oil China economic

References

Abejide, T.S. (2014). Oil and the Ijaw People of the Niger Delta States: 1956-1998. Unpublished Thesis submitted to the University of Johannesburg, South Africa.
Aigbokhan, B. E, (2001).’Resuscitating Agricultural Production (e.g., cocoa, cotton, ground nut, palm oil rubber) for Export’ A Paper Presented at the 10th Annual Conference of Zonal Research Units of the Central Bank of Nigeria, on the Theme ‘Resource Endowment, Growth and Macro-Economic Management in Nigeria’ held in Owerri, June 4-8, pp.4-8.
Akanmu G, Adebayo, (2010), In the Sphere of the Dragon: China’s Economic Relations with Africa in the New Millennium, Book Wright Nigeria Publisher.
Austin Strange, Bradley C. Parks, Michael J. Tierney, Andreas Fuchs, Axel Dreher, and Vijaya Ramachandran. (2013), China’s Development Finance to Africa: A Media-Based Approach to Data Collection. CGD Working Paper 323. Washington DC: Center for Global Development.
Awiwu, J, (1997). “Nigeria and the World of Oil”, In Victor, EE, (Ed.), Nigerian Petroleum Business: A Handbook, (pp.19-38), Lagos: Advance Communications.
Ayoola, Tajudeen, J, (2013). Nigeria-China Trade Relations: Implication on the Nigerian Domestic Economy. Research Journal of Finance and Accounting, Vol4, 17, pp.98-101.
British Petroleum Archive (BPA), 96531, Appendix V, ‘Sale of Nigeria Crude during 1966’
British Petroleum Archive (BP), File No, 37443, Letter to MGG, Stockwell, 7 July, 1967, No, EXP/AF MM/NG/201/1.’
Business Day’s Report on (Nigeria’s) Economic Transformation’, Business Day, Lagos, 29 November 2011, p. 21
Business Day, ‘China plans high-volume business activities in Nigeria’, Lagos, 15 March, 2011, p.5,
Chaturvedi, A. K. (2006), Dictionary of Political Science, Academic Publishers, New Delhi, p.342.
Central Bank of Nigeria Statistical Bulletin, Vol 31, December, 2020
Colonial State Office (CSO) 1290/45/Report on Agricultural Extension Services
Colonial Record: Ministry of Power, Petroleum Division (POWE), 63/238, ECI 5/4, Mineral oil- Nigeria, 1967
Cody, Edward (2007), "China Builds and Launches a Satellite for Nigeria. The Washington Post.
"China and Nigeria agree oil deal". BBC News. (2006) Retrieved 2022-05-5.
David H. Shinn, Joshua Eisenman, (2012), China and Africa: A Century of Engagement, University of Pennsylvania Press, 10, p.87
Emordi, E. C and Osiki, O.M (2009). “Landmarks in China-Nigeria Relations 1967-2006”, In Okpeh, O.O. Terhemba, W. and Jonathan, A. A (Eds.), China and Nigeria: Threats and Opportunities (pp.23-34), Makurdi, Aboki Publishers.
Financial Times, (1970), ‘Shell BP Tops 1m. Barrels a day in Nigeria’, 28 Dec, pp.5-6
Gubak, H.D, Samuel, M, (2015), Chinese Trade in Nigeria’s Agricultural Sector: A critical Analysis’, American International Journal of Social Sciences, Vol 4, 2, pp.277-287.
Kuo, Lily. (1996), “After getting a $40 billion pledge from China, Nigeria ordered Taiwan's unofficial embassy to move out". Quartz Africa
Lewis, Paul (1996). "U.S. Seeking Tougher Sanctions to Press Nigeria for Democracy (Published 1996)". The New York Times 1996.
Levan, Carl; Ukata, Patrick (2018). The Oxford Handbook of Nigerian Politics. Oxford: Oxford University Press, pp.751-756
Leadership Newspaper. (2020), ‘Nigeria-China Relations and 20 Years of FOCAC.
Madujibeya, S.A. (1976), Oil and Nigeria's Economic Development. African Affairs, Vol. 75, No. 300, p.288.
Milutin Tomanović, ed. (1972). Hronika međunarodnih događaja 1971: The Chronicle of International Events in 1971, (in Serbo-Croatian). Belgrade: Institute of International Politics and Economics. p. 98.
Naidu, S., & Davies, M. (2006). China Fuels its future with Africa’s Riches. South African Journal of International Affairs. Vol. 13, Issue 2, pp.69-83.
“Nigeria-China Relations and 20 Years of FOCAC”, Leadership Newspaper. 2020-11-08. (Retrieved 2022-05-05)
NAI: National Archive Ibadan, PX185, Oct/Dec, 1964, Nigeria Trade Journal, 145
NAI (National Archive Ibadan), War Prof, 1290/1967, Government Gazette on foreign Earnings.
Perkins, D. H., & Rawski, T. G. (2008). Forecasting China’s economic growth to 2025. China’s great economic transformation, pp.826-860.
Pearson, S. R, (1970). Petroleum and the Nigerian Economy, Stanford: Stanford University Press, p.15-25.
PRO (Public Record Office), OPD (67) (32), Meeting on Possible Blockade and Secession of Eastern Region of Nigeria, Friday 12th May 1967. This equally point to the eventual growth in the Nigerian crude oil later in the early 1970s.
PRO-POWE (Public Record Office- Min of Power and Mines), Annual Report of the Petroleum Division of the Min of Mine & Power for the year 1964-5, Federal Ministry of Information, Printing Division, Lagos, 1966.
Schatzl, L. H, (1969). Petroleum in Nigeria, Ibadan: Oxford University Press, pp.77, 102, 152.
Strange, Parks, Tierney, Fuchs, Dreher, and Ramachandran, China’s Development Finance to Africa: A Media-Based Approach to Data Collection, .http://aiddatachina.org/projects/1851
Shinn, D. H. and J. Eisenman (2012), China and Africa: A Century of Engagement. Philadelphia, PA: University of Pennsylvania Press.
Singer, Hans (1950), The Distribution of Gains between Investing and Borrowing Countries. American Economic Review Vol.40, pp. 473–85.
Stein, H. (2012), “Africa, Industrial Policy and Export Processing Zones: Lessons from Asia”. In A. Noman et al. (Eds.), Good Growth and Governance in Africa: Rethinking Development Strategies. (pp. 322–44), Oxford: Oxford University Press.
Stein, H. (2013) “Africa and the Perversities of International Capital Flows”, In Philip Arestis and Malcolm Sawyer (Eds.) Economic Policies, Governance and the New Economics International Papers in Political Economy (pp. 165–208). Basingstoke: Palgrave Macmillan.
Singer, Jeffrey Lin and P. W. (2020), “It Looks Like an Armed Chinese-Made Drone Crashed In Nigeria”, Business Insider.
Taylor, Ian (2007). “Sino-Nigerian Relations: FTZs, Textiles and Oil”, China Brief - Jamestown Foundation. Vol.7, Issue 11.
This Day Newspaper, China’s Investments in Nigeria Hits US$3 Billion’, Lagos.
Umejei, E. (2015). China’s Engagement with Nigeria; Opportunity or Opportunist? African East- Asian Affairs, pp.3-4.
Victoria Ojeme (2013), ‘Nigeria: Chinese Government Hands Over U.S. $12.5 Million Hospital to Nigeria’, Vanguard, allafrica.com.
Welham, D.R, (1982). ‘Oil Supply and Demand’ The Proceedings of the 1982 AGM Symposium of the Lagos Chambers of Commerce and Industry, Lagos Press, pp.21-26
Warri Province (WAR PROF) Ibadan Ministry of Agriculture (Ib. Min Agric) 1/298/17457
World Bank (2010), Nigeria and the World Bank; Learning from the Past and Looking to the Future’
World Bank, (1974), Nigeria-Options for Long Term Development’ p. 70.

References

Abejide, T.S. (2014). Oil and the Ijaw People of the Niger Delta States: 1956-1998. Unpublished Thesis submitted to the University of Johannesburg, South Africa.

Aigbokhan, B. E, (2001).’Resuscitating Agricultural Production (e.g., cocoa, cotton, ground nut, palm oil rubber) for Export’ A Paper Presented at the 10th Annual Conference of Zonal Research Units of the Central Bank of Nigeria, on the Theme ‘Resource Endowment, Growth and Macro-Economic Management in Nigeria’ held in Owerri, June 4-8, pp.4-8.

Akanmu G, Adebayo, (2010), In the Sphere of the Dragon: China’s Economic Relations with Africa in the New Millennium, Book Wright Nigeria Publisher.

Austin Strange, Bradley C. Parks, Michael J. Tierney, Andreas Fuchs, Axel Dreher, and Vijaya Ramachandran. (2013), China’s Development Finance to Africa: A Media-Based Approach to Data Collection. CGD Working Paper 323. Washington DC: Center for Global Development.

Awiwu, J, (1997). “Nigeria and the World of Oil”, In Victor, EE, (Ed.), Nigerian Petroleum Business: A Handbook, (pp.19-38), Lagos: Advance Communications.

Ayoola, Tajudeen, J, (2013). Nigeria-China Trade Relations: Implication on the Nigerian Domestic Economy. Research Journal of Finance and Accounting, Vol4, 17, pp.98-101.

British Petroleum Archive (BPA), 96531, Appendix V, ‘Sale of Nigeria Crude during 1966’

British Petroleum Archive (BP), File No, 37443, Letter to MGG, Stockwell, 7 July, 1967, No, EXP/AF MM/NG/201/1.’

Business Day’s Report on (Nigeria’s) Economic Transformation’, Business Day, Lagos, 29 November 2011, p. 21

Business Day, ‘China plans high-volume business activities in Nigeria’, Lagos, 15 March, 2011, p.5,

Chaturvedi, A. K. (2006), Dictionary of Political Science, Academic Publishers, New Delhi, p.342.

Central Bank of Nigeria Statistical Bulletin, Vol 31, December, 2020

Colonial State Office (CSO) 1290/45/Report on Agricultural Extension Services

Colonial Record: Ministry of Power, Petroleum Division (POWE), 63/238, ECI 5/4, Mineral oil- Nigeria, 1967

Cody, Edward (2007), "China Builds and Launches a Satellite for Nigeria. The Washington Post.

"China and Nigeria agree oil deal". BBC News. (2006) Retrieved 2022-05-5.

David H. Shinn, Joshua Eisenman, (2012), China and Africa: A Century of Engagement, University of Pennsylvania Press, 10, p.87

Emordi, E. C and Osiki, O.M (2009). “Landmarks in China-Nigeria Relations 1967-2006”, In Okpeh, O.O. Terhemba, W. and Jonathan, A. A (Eds.), China and Nigeria: Threats and Opportunities (pp.23-34), Makurdi, Aboki Publishers.

Financial Times, (1970), ‘Shell BP Tops 1m. Barrels a day in Nigeria’, 28 Dec, pp.5-6

Gubak, H.D, Samuel, M, (2015), Chinese Trade in Nigeria’s Agricultural Sector: A critical Analysis’, American International Journal of Social Sciences, Vol 4, 2, pp.277-287.

Kuo, Lily. (1996), “After getting a $40 billion pledge from China, Nigeria ordered Taiwan's unofficial embassy to move out". Quartz Africa

Lewis, Paul (1996). "U.S. Seeking Tougher Sanctions to Press Nigeria for Democracy (Published 1996)". The New York Times 1996.

Levan, Carl; Ukata, Patrick (2018). The Oxford Handbook of Nigerian Politics. Oxford: Oxford University Press, pp.751-756

Leadership Newspaper. (2020), ‘Nigeria-China Relations and 20 Years of FOCAC.

Madujibeya, S.A. (1976), Oil and Nigeria's Economic Development. African Affairs, Vol. 75, No. 300, p.288.

Milutin Tomanović, ed. (1972). Hronika međunarodnih događaja 1971: The Chronicle of International Events in 1971, (in Serbo-Croatian). Belgrade: Institute of International Politics and Economics. p. 98.

Naidu, S., & Davies, M. (2006). China Fuels its future with Africa’s Riches. South African Journal of International Affairs. Vol. 13, Issue 2, pp.69-83.

“Nigeria-China Relations and 20 Years of FOCAC”, Leadership Newspaper. 2020-11-08. (Retrieved 2022-05-05)

NAI: National Archive Ibadan, PX185, Oct/Dec, 1964, Nigeria Trade Journal, 145

NAI (National Archive Ibadan), War Prof, 1290/1967, Government Gazette on foreign Earnings.

Perkins, D. H., & Rawski, T. G. (2008). Forecasting China’s economic growth to 2025. China’s great economic transformation, pp.826-860.

Pearson, S. R, (1970). Petroleum and the Nigerian Economy, Stanford: Stanford University Press, p.15-25.

PRO (Public Record Office), OPD (67) (32), Meeting on Possible Blockade and Secession of Eastern Region of Nigeria, Friday 12th May 1967. This equally point to the eventual growth in the Nigerian crude oil later in the early 1970s.

PRO-POWE (Public Record Office- Min of Power and Mines), Annual Report of the Petroleum Division of the Min of Mine & Power for the year 1964-5, Federal Ministry of Information, Printing Division, Lagos, 1966.

Schatzl, L. H, (1969). Petroleum in Nigeria, Ibadan: Oxford University Press, pp.77, 102, 152.

Strange, Parks, Tierney, Fuchs, Dreher, and Ramachandran, China’s Development Finance to Africa: A Media-Based Approach to Data Collection, .http://aiddatachina.org/projects/1851

Shinn, D. H. and J. Eisenman (2012), China and Africa: A Century of Engagement. Philadelphia, PA: University of Pennsylvania Press.

Singer, Hans (1950), The Distribution of Gains between Investing and Borrowing Countries. American Economic Review Vol.40, pp. 473–85.

Stein, H. (2012), “Africa, Industrial Policy and Export Processing Zones: Lessons from Asia”. In A. Noman et al. (Eds.), Good Growth and Governance in Africa: Rethinking Development Strategies. (pp. 322–44), Oxford: Oxford University Press.

Stein, H. (2013) “Africa and the Perversities of International Capital Flows”, In Philip Arestis and Malcolm Sawyer (Eds.) Economic Policies, Governance and the New Economics International Papers in Political Economy (pp. 165–208). Basingstoke: Palgrave Macmillan.

Singer, Jeffrey Lin and P. W. (2020), “It Looks Like an Armed Chinese-Made Drone Crashed In Nigeria”, Business Insider.

Taylor, Ian (2007). “Sino-Nigerian Relations: FTZs, Textiles and Oil”, China Brief - Jamestown Foundation. Vol.7, Issue 11.

This Day Newspaper, China’s Investments in Nigeria Hits US$3 Billion’, Lagos.

Umejei, E. (2015). China’s Engagement with Nigeria; Opportunity or Opportunist? African East- Asian Affairs, pp.3-4.

Victoria Ojeme (2013), ‘Nigeria: Chinese Government Hands Over U.S. $12.5 Million Hospital to Nigeria’, Vanguard, allafrica.com.

Welham, D.R, (1982). ‘Oil Supply and Demand’ The Proceedings of the 1982 AGM Symposium of the Lagos Chambers of Commerce and Industry, Lagos Press, pp.21-26

Warri Province (WAR PROF) Ibadan Ministry of Agriculture (Ib. Min Agric) 1/298/17457

World Bank (2010), Nigeria and the World Bank; Learning from the Past and Looking to the Future’

World Bank, (1974), Nigeria-Options for Long Term Development’ p. 70.