In an effort to boost Nigeria’s economy, the Federal Government of Nigeria has disclosed that China plans to encourage more of its businesses to make investments in the country.
Following President Bola Tinubu’s recent trip to China, Nigeria will be represented in the Forum on China-Africa Cooperation’s 2024 Summit.
The development was revealed in a statement released on Saturday by Ambassador Yusuf Tuggar, Minister of Foreign Affairs, who noted that the visit led to a notable strengthening of bilateral relations between the two countries.
Tuggar pointed out that during Tinubu’s official visit, a number of Memoranda of Understanding and partnership agreements were inked, ushering in a new era in China-Nigeria relations.
“Nigeria is willing to enhance its relationship with China in the development of energy and mineral resources, as well as to collaborate with Chinese enterprises to establish factories in Nigeria to meet domestic consumption and export requirements.
“China will encourage more competent Chinese companies to invest in Nigeria to contribute to the diversified and dynamic development of Nigeria’s economy,” according to part of the statement.
China has pledged to help Nigeria’s economic diversification efforts by encouraging investment in developing industries like the internet economy, green development, and agricultural modernisation.
Additionally, both nations decided to strengthen comprehensive industrial reform and encourage cooperation in the blue economy.
Nigeria also praised China’s Global Initiative for AI Governance and the Global Initiative on Data Security.
The Federal Government values China’s leadership in pushing for developing countries’ rights in fields such as AI, data, and digital infrastructure.
To improve commerce between the two nations, Nigeria and China will investigate flexible regional monetary cooperation, such as local currency swaps, to simplify transactions and contribute to global financial stability.
Both countries reaffirmed their commitment to supporting the World Trade Organization’s multilateral trading system, opposing trade protectionism, and promoting trade liberalisation.
They also promised to uphold the rights of their respective countries’ residents and foster an atmosphere that is conducive to commerce for enterprises operating in both nations.
“The two sides are dedicated to upholding the multilateral trading system centred on the World Trade Organisation (WTO), opposing trade protectionism, advancing trade and investment liberalisation and facilitation, and establishing an open, nondiscriminatory business environment for mutual cooperation.”
Why this matters
China’s role as a global economic powerhouse and its focus on infrastructure, technological advancement, and industrialization makes this collaboration particularly strategic for Nigeria.
One of the most significant aspects of this partnership is the potential for diversification of Nigeria’s economy, which has long been dependent on oil.
Expanding into areas such as green development, the internet economy, agricultural modernization, and industrial reform could help Nigeria build a more resilient and sustainable economic foundation. Chinese companies establishing factories in Nigeria could also create jobs, stimulate local industries, and boost exports.
