The relationship between attitudes and behaviour

Once we've established people's attitudes, can we then accurately predict how they'll behave? Rosenberg & HovIand's (1960) three‑components model (The ABC model:  affective – behavioural – cognitive) implies that the behavioural component will be highly correlated with the cognitive and affective components.

An early study which shows the inconsistency of attitudes and behaviour is that of LaPiere (1934).

LaPiere’s study

Beginning in 1930 and for the next two years, LaPiere travelled around the USA with a Chinese couple (a young student and his wife), expecting to encounter anti‑Oriental attitudes which would make it difficult for them to find accommodation. But in the course of 10,000 miles of travel, they were discriminated against only once and there appeared to be no prejudice. They were given accommodation in 66 hotels, auto‑camps and 'Tourist Homes' and refused at only one. They were also served in 184 restaurants and ca16 and treated with '... more than ordinary consideration ...'in 72 of them.

However, when each of the 251 establishments visited was sent a letter six months later asking: 'Will you accept members of the Chinese race as guests in your establishment?', 91 per cent of the 128 which responded gave an emphatic 'No'. One establishment gave an unqualified 'Yes' and the rest said 'Undecided: depends upon circumstances'.

Influences on behaviour

It's generally agreed that attitudes form only one determinant of behaviour. They represent predispositions to behave in particular ways, but how we actually act in a particular situation will depend on the immediate consequences of our behaviour, how we think others will evaluate our actions, and habitual ways of behaving in those kinds of situations. In addition, there may be specific situational factors influencing behaviour. For example, in the LaPiere study, the high quality of his Chinese friends' clothes and luggage and their politeness, together with the presence of LaPiere himself, may have made it more difficult to show overt prejudice. Thus, sometimes we experience a conflict of attitudes, and behaviour may represent a compromise between them.

Compatibility between attitudes and behaviour

The same attitude may be expressed in a variety of ways. For example, having a positive attitude towards the Labour Party doesn't necessarily mean that you actually become a member, or that you attend public meetings. But if you don't vote Labour in a general election, people may question your attitude. In other words, an attitude should predict behaviour to some extent, even if this is extremely limited and specific.

Indeed, Azjen & Fishbein (1977) argue that attitudes can predict behaviour, provided that both are assessed at the same level of generality. There needs to be a high degree of compatibility (or correspondence) between them. They argue that much of the earlier research (LaPiere's study included) suffered from either trying to predict specific behaviours from general attitudes, or vice versa, and this accounts for the generally low correlations. A study by Davidson and Jaccard tried to overcome this limitation.

Attitudes can predict behaviour if you ask the right questions (Davidson & Jaccard, 1979) Davidson and Jaccard analysed correlations between married women's attitudes towards birth control and their actual use of oral contraceptives during the two years following the study.

When 'attitude towards birth control' was used as the attitude measure, the correlation was 0.08. Clearly, the correspondence here was very low. But when 'attitudes towards oral contraceptives' were measured, the correlation rose to 0.32, and when 'attitudes towards using oral contraceptives' were measured, the correlation rose still further to 0.53. Finally, when 'attitudes towards using oral contraceptives during the next two years' was used, it rose still further, to 0.57. Clearly, in the last three cases, correspondence was much higher.

According to Ajzen and Fishbein, every single instance of behaviour involves four specific elements:

      a specific action

      performed with respect to a given target

      in a given context

      at a given point in time.

According to the principle of compatibility, measures of attitude and behaviour are compatible to the extent that the target, action, context and time element are assessed at identical levels of generality or specificity (Ajzen, 1988).

For example, a person's attitude towards a 'healthy lifestyle' only specifies the target, leaving the other three unspecified. A behavioural measure that would be compatible with this global attitude would have to aggregate a wide range of health behaviour across different contexts and times (Stroebe, 2000).  Elaborating the psychological processes underlying the principle of compatibility, Ajzen (1996) suggested that to:

'... the extent that the beliefs salient at the time of  attitude assessment are also salient when plans are formulated or executed, strong attitude‑behaviour correlations are expected'.

The reliability and consistency of behaviour

Many of the classic studies which failed to find an attitude‑behaviour relationship assessed just single instances of behaviour (Stroebe, 2000). As we noted earlier when discussing the LaPiere study, behaviour depends on many factors in addition to the attitude. This makes a single instance of behaviour an unreliable indicator of an attitude Jonas et al., 1995). Only by sampling many instances of the behaviour will the influence of specific factors 'cancel out'. This aggregation principle (Fishbein & Ajzen, 1974) has been demonstrated in a number of studies.

According to Hogg & Vaughan (1995), what has emerged in the 1980s and 1990s is a view that attitudes and overt behaviour aren't related in a simple one‑to‑one fashion. In order to predict someone's behaviour, it must be possible to account for the interaction between attitudes, beliefs and behavioural intentions, as well as how all of these connect with the later action. One attempt to formalise these links is the theory of reasoned action (TRA) (Ajzen & Fishbein, 1970; Fishbein & Ajzen, 1975). This is discussed in relation to health behaviour in Chapter 12.

The strength of attitudes

Most modern theories agree that attitudes are represented in memory, and that an attitude's accessibility can exert a strong influence on behaviour (Fazio, 1986: see Chapter 17). By definition, strong attitudes exert more influence over behaviour, because they can be automatically activated. One factor that seems to be important is direct experience. For example, Fazio & Zanna (1978) found that measures of students' attitudes towards psychology experiments were better predictors of their future participation if they'd already taken part in several experiments than if they'd only read about them. This can be explained by the mere exposure effect (Zajonc, 1968), according to which the more contact we have with something or somebody, the more we like them (see Chapter 28).

So attitudes don't predict behaviour: what's the problem? The so‑called attitude‑behaviour problem, that is, the failure to find a reliable relationship between attitudes and behaviour, threatened to undermine the entire study of attitudes. As we saw in the Introduction and overview, attitude research was a cornerstone of social psychology in general, and social cognition in particular, for much of their history (Stainton Rogers et al., 1995).

But from the perspective of discursive psychology, there's no reason to expect such a correlation: inconsistency between attitudes and behaviour is what we'd expect to find. Traditional, mainstream, attitude research is based on the fallacy of individualism (see Chapter 3), according to which attitudes 'belong' to individuals. This implies something fairly constant, and which is expressed and reflected in behaviour. From a discursive perspective, attitudes are versions of the world that are constructed by people in the course of their interactions with others.

Discursive psychology is concerned with action, as distinct from cognition. In saying or writing things, people are performing actions, whose nature can in revealed through a detailed study of the discourse (e.g. recordings of everyday conversations, newspaper articles, TV programmes). Social psychologists have underestimated the centrality of conflict in social life; an analysis of rhetoric highlights the point that people's versions of events, and their own mental life, are part of ongoing arguments, debates and dialogues (Billig, 1987, 1992, in Potter, 1996).

Compared with traditional attitude research, discursive psychology tries to shift the focus away from single, isolated, individuals towards interactions between individuals and groups, a more relational or distri

Quotes About The Relationship Between Animals And Humans

Heaven is by favor; if it were by merit your dog would go in and you would stay out. Of all the creatures ever made [man] is the most detestable. Of the entire brood, he is the only one... that possesses malice. He is the only creature that inflicts pain for sport, knowing it to be pain. ~Mark Twain
The question is not, "Can they reason?" nor, "Can they talk?" but rather, "Can they suffer?" ~Jeremy Bentham
If a group of beings from another planet were to land on Earth - beings who considered themselves as superior to you as you feel yourself to be to other animals - would you concede them the rights over you that you assume over other animals? ~Attributed to George Bernard Shaw Think occasionally of the suffering of which you spare yourself the sight. ~Albert Schweitzer
I had bought two male chimps from a primate colony in Holland. They lived next to each other in separate cages for several months before I used one as a [heart] donor. When we put him to sleep in his cage in preparation for the operation, he chattered and cried incessantly. We attached no significance to this, but it must have made a great impression on his companion, for when we removed the body to the operating room, the other chimp wept bitterly and was inconsolable for days. The incident made a deep impression on me. I vowed never again to experiment with such sensitive creatures. ~Christian Barnard, surgeon
Non-violence leads to the highest ethics, which is the goal of all evolution. Until we stop harming all other living beings, we are still savages. ~Thomas A. Edison
I care not much for a man's religion whose dog and cat are not the better for it. ~Abraham Lincoln God loved the birds and invented trees. Man loved the birds and invented cages. ~Jacques Deval, Afin de vivre bel et bien
We have enslaved the rest of the animal creation, and have treated our distant cousins in fur and feathers so badly that beyond doubt, if they were able to formulate a religion, they would depict the Devil in human form. ~William Ralph Inge, Outspoken Essays, 1922
From beasts we scorn as soulless, In forest, field and den, The cry goes up to witness The soullessness of men. ~M. Frida Hartley
People are more violently opposed to fur than leather because it's safer to harass rich women than motorcycle gangs. ~Author Unknown
Personally, I would not give a fig for any man's religion whose horse, cat and dog do not feel its benefits. Life in any form is our perpetual responsibility. ~S. Parkes Cadman -
Ever occur to you why some of us can be this much concerned with animals suffering? Because government is not. Why not? Animals don't vote. ~Paul Harvey
Support your right to arm bears. ~Cleveland Amory
Why should man expect his prayer for mercy to be heard by What is above him when he shows no mercy to what is under him? ~Pierre Troubetzkoy
Think occasionally of the suffering of which you spare yourself the sight. ~Albert Schweitzer
Cockfighting was illegal in Oklahoma until 1963, when a judge ruled that chickens are not animals and therefore unprotected by anticruelty laws. ~U.S. News & World Report, 6 December 1999
Animals give me more pleasure through the viewfinder of a camera than they ever did in the crosshairs of a gunsight. And after I've finished "shooting," my unharmed victims are still around for others to enjoy. I have developed a deep respect for animals. I consider them fellow living creatures with certain rights that should not be violated any more than those of humans. ~Jimmy Stewart
If we cut up beasts simply because they cannot prevent us and because we are backing our own side in the struggle for existence, it is only logical to cut up imbeciles, criminals, enemies, or capitalists for the same reasons. ~C.S. Lewis
People are more violently opposed to fur than leather because it's safer to harass rich women than motorcycle gangs. ~Author Unknown
Though boys throw stones at frogs in sport, the frogs do not die in sport, but in earnest. ~Bion, "Water and Land Animals," Plutarch
I abhor vivisection with my whole soul. All the scientific discoveries stained with innocent blood I count as of no consequence. ~Mahatma Gandhi
The squirrel that you kill in jest, dies in earnest. ~Henry David Thoreau
Drinking without being thirsty and making love at any time, Madame, are the only things that distinguish us from other animals. ~Pierre-Augustin Caron de Beaumarchais, The Marriage of Figaro, 1784, translated
I ask people why they have deer heads on their walls. They always say because it's such a beautiful animal. There you go. I think my mother is attractive, but I have photographs of her. ~Ellen DeGeneres
The fascination of shooting as a sport depends almost wholly on whether you are at the right or wrong end of a gun. ~P.G. Wodehouse
If you love animals called pets, why do you eat animals called dinner? ~As seen on a shirt at veganstore.com As often as Herman had witnessed the slaughter of animals and fish, he always had the same thought: in their behaviour toward creatures, all men were Nazis. The smugness with which man could do with other species as he pleased exemplified the most extreme racist theories, the principle that might is right. ~Isaac Bashevis Singer When I was twelve, I went hunting with my father and we shot a bird. He was laying there and something struck me. Why do we call this fun to kill this creature [who] was as happy as I was when I woke up this morning. ~Marv Levy
The woods were made for the hunters of dreams, The brooks for the fishers of song; To the hunters who hunt for the gunless game The streams and the woods belong. ~Sam Walter Foss
Animals can communicate quite well. And they do. And generally speaking, they are ignored. ~Alice Walker
Lisa: "Do we have any food that wasn't brutally slaughtered?" Homer: "Well, I think the veal died of loneliness." ~Matt Groening, The Simpsons
Cruelty must be whitewashed by a moral excuse, and pretense of reluctance. ~George Bernard Shaw
In an earlier stage of our development most human groups held to a tribal ethic. Members of the tribe were protected, but people of other tribes could be robbed or killed as one pleased. Gradually the circle of protection expanded, but as recently as 150 years ago we did not include blacks. So African human beings could be captured, shipped to America and sold. In Australia white settlers regarded Aborigines as a pest and hunted them down, much as kangaroos are hunted down today. Just as we have progressed beyond the blatantly racist ethic of the era of slavery and colonialism, so we must now progress beyond the speciesist ethic of the era of factory farming, of the use of animals as mere research tools, of whaling, seal hunting, kangaroo slaughter and the destruction of wilderness. We must take the final step in expanding the circle of ethics. ~Pete Singer
I abhor vivisection with my whole soul. All the scientific discoveries stained with innocent blood I count as of no consequence. ~Mahatma Gandhi Get a feel for fur: Slam your fingers in a car door. ~Anonymous, on the use of steel traps to capture fur-bearing animals, cited in Audubon, November 1990
Dogs are getting bigger, according to a leading dog manufacturer. ~Leo Rosten
Whether hunting is right or wrong, a spiritual experience, or an outlet for the killer instinct, one thing it is not is a sport. Sport is when individuals or teams compete against each other under equal circumstances to determine who is better at a given game or endeavor. Hunting will be a sport when deer, elk, bears, and ducks are... given 12-gauge shotguns. . ~R. Lerner, letter, Sierra, March-April 1991
Evolutionary biology is now uttering and seeking those forces that link us
with all those that have being. If we can discover the meaning in the trilling of a frog, perhaps we may understand why it is for us not merely noise but a song of poetry and emotion. ~Adrian Forsyth, A Natural History of Sex, 1986 Vivisection is a social evil because if it advances human knowledge, it does so at the expense of human character. ~George Bernard Shaw
I am not interested to know whether vivisection produces results that are profitable to the human race or doesn't.... The pain which it inflicts upon unconsenting animals is the basis of my enmity toward it, and it is to me sufficient justification of the enmity without looking further. ~Mark Twain The basis of all animal rights should be the Golden Rule: we should treat them as we would wish them to treat us, were any other species in our dominant position. ~Christine Stevens
When a man wants to murder a tiger he calls it sport; when the tiger wants to murder him he calls it ferocity. ~George Bernard Shaw
The animal shall not be measured by man. In a world older and more complete than ours, they move finished and complete, gifted with extension of the senses we have lost or never attained, living by voices we shall never hear. They are not brethren; they are not underlings; they are other nations, caught with ourselves in the net of life and time, fellow prisoners of the splendor and travail of the earth. ~Henry Beston, The Outermost House, 1928 I abhor vivisection with my whole soul. All the scientific discoveries stained with innocent blood I count as of no consequence. ~Mahatma Gandhi
I think animal testing is a terrible idea; they get all nervous and give the wrong answers. ~Author Unknown
Teaching a child not to step on a caterpillar is as valuable to the child as it is to the caterpillar. ~Bradley Millar
A Robin Redbreast in a cage Puts all Heaven in a Rage. ~William Blake, Auguries of Innocence
The human spirit is not dead. It lives on in secret.... It has come to believe that compassion, in which all ethics must take root, can only attain its full breadth and depth if it embraces all living creatures and does not limit itself to mankind. ~Albert Schweitzer, Novel Peace Prize address, "The Problem of Peace in the World Today"
People must have renounced, it seems to me, all natural intelligence to dare to advance that animals are but animated machines.... It appears to me, besides, that [such people] can never have observed with attention the character of animals, not to have distinguished among them the different voices of need, of suffering, of joy, of pain, of love, of anger, and of all their affections. It would be very strange that they should express so well what they could not feel. ~Voltaire, Traité sur la tolerance
To a man whose mind is free there is something even more intolerable in the sufferings of animals than in the sufferings of man. For with the latter it is at least admitted that suffering is evil and that the man who causes it is a criminal. But thousands of animals are uselessly butchered every day without a shadow of remorse. If any man were to refer to it, he would be thought ridiculous. And that is the unpardonable crime. ~Romain Rolland, Nobel Prize 1915
When it comes to having a central nervous system, and the ability to feel pain, hunger, and thirst, a rat is a pig is a dog is a boy. ~Ingrid Newkirk
Very little of the great cruelty shown by men can really be attributed to cruel instinct. Most of it comes from thoughtlessness or inherited habit. The roots of cruelty, therefore, are not so much strong as widespread. But the time must come when inhumanity protected by custom and thoughtlessness will succumb before humanity championed by thought. Let us work that this time may come. ~Albert Schweitzer
Because the heart beats under a covering of hair, of fur, feathers, or wings, it is, for that reason, to be of no account? ~Jean Paul Richter
Deliberate cruelty to our defenceless and beautiful little cousins is surely one of the meanest and most detestable vices of which a human being can be guilty. ~William Ralph Inge
The indifference, callousness and contempt that so many people exhibit toward animals is evil first because it results in great suffering in animals, and second because it results in an incalculably great impoverishment of the human spirit. All education should be directed toward the refinement of the individual's sensibilities in relation not only to one's fellow humans everywhere, but to all things whatsoever. ~Ashley Montague
I had bought two male chimps from a primate colony in Holland. They lived next to each other in separate cages for several months before I used one as a [heart] donor. When we put him to sleep in his cage in preparation for the operation, he chattered and cried incessantly. We attached no significance to this, but it must have made a great impression on his companion, for when we removed the body to the operating room, the other chimp wept bitterly and was inconsolable for days. The incident made a deep impression on me. I vowed never again to experiment with such sensitive creatures. ~Christian Barnard, surgeon
We must fight against the spirit of unconscious cruelty with which we treat the animals. Animals suffer as much as we do. True humanity does not allow us to impose such sufferings on them. It is our duty to make the whole world recognize it. Until we extend our circle of compassion to all living things, humanity will not find peace. ~Albert Schweitzer, The Philosophy of Civilization
If you have men who will exclude any of God's creatures from the shelter of compassion and pity, you will have men who will deal likewise with their fellow men. ~St. Francis of Assisi

China‐Nigeria Economic Relations

[REVISED]
China‐Nigeria Economic
Relations
AERC Scoping Studies on China‐Africa Relations
E. Olawale OGUNKOLA
waleogunkola@yahoo.com
Abiodun S. BANKOLE
and
Adeolu ADEWUYI.
Department of Economics
and
Trade Policy Research and Training Programme (TPRTP)
University of Ibadan,
Ibadan, Nigeria
[Revised Report submitted to the African Economic Research Consortium (AERC),
February, 2008]
General Economic Background
Nigeria’s quest for development which has spanned some decades is yet to deliver on the ultimate
goal of poverty reduction, despite various plans, programmes, and projects. Analysis of
performance on poverty reduction strategy necessarily examines issues in growth and equity simply
because growth may be recorded without impacting on the poor. Indeed it is not impossible for
growth to have occurred at the expense of equity. Analysis of growth drivers on one hand has
identified several factors including macroeconomic environment, political and social environment
and investment gap. Some policies are required to attract foreign direct investment and to direct
such investment into appropriate sectors.
As a resource-rich country, Nigeria’s economic performance has been unfortunately driven by the
oil and gas sector to the extent that even progress recorded towards genuine economic development
prior to the discovery of oil in commercial quantity has been virtually eroded. In recent time (2000-
2005), the GDP growth was about 5.7% and the growth in the non-oil sector which contributed
about 5.9% of the GDP. However, the sector dominates the supply of foreign exchange and given
that the political economy of the country vested this important resource in the hand of the
government it also contributes a large chunk of government revenue.
The decline in the agricultural sector performance has been dramatic since the discovery of oil. The
manufacturing sector has not performed even better. A few statistics illustrate the poor performance
of the non-oil sector. The share of non-oil sector decreased from about 94% in 1970 to about 52%
in 2004. The decrease affected all the sectors (agriculture, industry, and services) but in different
magnitude. Agriculture GDP declined from about 41% to about 17% over the same period. The
decline in the services sector was from about 45% to about 27% during the period under review.
Nigeria’s non-oil sector is inefficiently servicing the domestic market as non-oil export is negligible
(about 1% of the GDP in 2005).
Table 1.1:
Structure of the Nigerian Economy, 1974-2004 (percent of GDP at current factor costs)
1970 1980 1990 2000 2003 2004
Oil sector GDP 6.0 29.1 39.3 48.2 44.6 48.2
Non-oil sector GDP 94.0 70.9 60.7 51.8 55.4 51.8
Agriculture 41.3 20.6 29.7 26.3 26.4 16.6
Industry 7.8 16.4 7.4 4.5 4.8 8.7
Services 45.0 33.8 23.6 21.0 24.2 26.5
Source: World Bank (2007)
It has also been recognized that sustainable development of the Nigerian economy rests the
diversification of the economy away from oil and gas to non-oil sector and this should be based on
the country’s abundant resources and comparative advantage. An analysis of constraints to the high
performance of the non-oil sectors identifies low productivity as a precursor to low private returns
and which in turn lead to low investment. Weak and unreliable infrastructure, macroeconomic
instability, microeconomic risks from corruption and weakness of institutions and regulations to
guide investment behaviour are the main constraints to high performance of the economy (World
Bank, 2007)1.
1 World Bank (2007), Nigeria: Competitiveness and Growth (Country Economic Memorandum)
- 2 -
Nigeria’s domestic market is vast but very small for modern day technology. Thus, there is the need
for seeking favourable external market at regional as well as at global level. Negotiations of the
trade agreements are expected to take these constraints into consideration. Indeed, for Nigeria
within-the border issues are relatively more important than seeking for more favourable market
access conditions. It is in this vein that aid-for-trade concept is more relevant to the country. A
critical element in enhancing the performance of non-oil sector as well as ensuring effective supply
response to market opening is investment in infrastructure which also in turn enhances private
investment. Thus, private investment and investment in the public sector of the economy is one of
the factors for ensuring sustainable development.
Hitherto, traditional development partners mainly from Europe and the Americas (U.S. A. and
Canada) have dominated trade, investment (in terms of foreign direct investment (FDI)) and grants
and financial as well as technical aid to the country. These are governed by various bilateral and
regional agreements that exist between these countries and Nigeria. Although Nigeria and these
countries have come a long way in their relationship, it is debateable if such has in any significant
way assist the country in its quest for development. The relationship appears to be exploitative at
least from the trend in the structure and pattern of trade and FDI inflow to the country. This is
based on the fact that oil and gas sector dominates the country’s exports to the tune of about 98%
and FDI inflows to the oil and gas sector accounted for about 40%.
Although Sino-Nigeria relationship dates back to more than three decades, recent developments call
for a careful and detailed analysis of this relationship and to this end, we seek to provide analysis of
the relationship with respect to investment, trade and aid: To what extent is China different from
other exploitative practices? What lessons can we learn from the past in order to make the
blossoming relationship produce win-win outcome?
In order to put the study in its proper perspective, Section II examines the cooperation
arrangements between Nigeria and China with specific focus on the diplomatic tie, technical
assistance, scientific cooperation, economic cooperation and cultural cooperation. Section III
presents an overview of investment relations with a view to determining its size, composition and
significance. Section IV is on trade relations. Export and import structures as well as the bilateral
balance of trade are examined. Section is an attempt at presenting information on aid flow from
China to Nigeria and Section VI concludes the report by revisiting the questions raised above.
II Cooperation arrangements
Recent developments in China and Nigeria relationship are not unconnected with the renewed ties
between the two giants. Although, China and Nigeria established diplomatic tie in 1972, the last
decade has witnessed unprecedented renewed positive and mutually beneficial developments.
Indeed between 1999 and 2006 diplomatic visits at the highest level were recorded: two visits in
each direction2 and various visits at other levels. All these visits, no doubt, are precursors to
2 Chinese leaders who visited Nigeria are as follows: Vice Premier Geng Biao (October 1978), Vice Premier Huang
Hua (November 1981), Vice Premier Tian Jiyun (November 1984), Vice Premier Wu Xueqian (March 1990), Vice
Premier and Foreign Minister Qian Qichen (January 1995), State Councilor and Secretary General of the State Council
Luo Gan (September 1996), Premier Li Peng (May 1997), Special Envoy of President Jiang Zeming, State Councilor
Ismail Amat (May 1999), Foreign Minister Tang Jiaxuan (January 2000), President Jiang Zemin (April 2002), and Vice
Chairman of the Standing Committee of the National Peoples Congress Han Qide (December 2003). China’s foreign
Minister, Li Zhaoxing (January, 2006), President Hu Jintao (April 2006)
- 3 -
developments in other facets of the relationship. Bilateral agreements are entered into in the process
some of which are listed in Table 1.2
Table1.2: Selected Agreements between Nigeria and China, 2001 to 2006
Type of Agreements Year
Agreement on Trade, Investment Promotion and Protection 2001
Agreement for the avoidance of double Taxation and Prevention of Fiscal Evasion with respect to Tax and
Income
2002
Agreement on Consular Affairs 2002
Agreement on Cooperation on Strengthening Management of narcotic Drugs, Psychotropic Substances and
diversion of Precursor Chemical
2002
Agreement on Tourist Cooperation 2002
Strategic Partnership Agreement 2005
A memorandum of Understanding on Investment Cooperation between the Federal Ministry of Commerce
of Nigeria and Ministry of Commerce of India
2006
Economic Cooperation Agreement between Nigeria and Xinguang International Group of China 2006
Source: Authors’ compilation
On diplomatic relations, various exchanges of visits and signed agreements and many Memoranda
of Understanding (MOUs) are indicative of the cordial relationship. Besides agreement on consular
affairs and strategic partnership agreement featuring mutual political trust, mutual economic benefit
and mutual support in international affairs have been signed. Various technical assistance in the
military, education and health, and technology have been received from Nigeria. For example an
aid of 46 million Yuan to Nigeria for the purpose of purchases of anti-malaria medicines and for
training of Nigerian health personnel on malaria control and prevention was granted by China.
Scientific cooperation between the two countries is also experiencing a boom. The relationship in
this area has witnessed the launching of NIGERCOMSTAT 1, Nigeria’s first communication
satellite in early 2007. An MOU on the Provision of National Information Communication
Technology Infrastructure Backbone between the Federal Ministry of Science and Technology and
Huawei Technologies was signed. Increase in economic cooperation is noticed both in trade and
investment both at public and private levels. Renewed cultural cooperation also manifests in
various areas. For example, some institutions of higher learning in Nigeria3 are collaborating with
their Chinese counterparts in the area of Chinese culture, innovation, while cultural troupes and
students are being exchanged.
The cooperation arrangements between China and Nigeria on different fronts a briefly examined in
the preceding paragraphs. Apart from providing alternatives to the traditional focus of government
such arrangements opened a new vista for other stakeholders.
The recent waves of diplomatic relations appear to a reasonable extent mutually beneficial. The
Nigerian was indeed on an aggressive campaign for FDI and Chinese government was also seeking
for markets for inputs especially raw materials as well as markets for finished products. While the
diplomatic relationship provides and generates general guidelines in terms of agreements, protocols
and Memorandum of Understanding; the cost-benefit analysis of the cooperation arrangements
Leaders of Nigeria who visited China are as follows: Head of State, Gen. Yakubu Gowon (September 1974), Vice-
President Dr. Alex I. Ekwueme (March 1983), Chief of the Army Staff Gen. Ibrahim Babangida (September 1984),
Chief of the Army Staff Gen. Sani Abacha (October 1989), Chief of the Defense Staff, General Abdulsalami Abubakar
(July 1997), President Olusegun Obasanjo (April 1999, August 2001 and 2005), President of Senate Anyim (December
2001), Vice President Abubakar (July 2002), and Deputy Speaker Nwuche of the National Assembly (July 2002).
3 Federal Polytechnic, Offa and Nnamdi Azikwe University are currently involved.
- 4 -
depend on several factors including the level of implementation, domestic rules, regulations and
institutional arrangements.
Nigeria stands to gain from technical assistance and scientific cooperation given China’s
advancement in these areas. A well known fact is that Nigerian military have benefited from
China’s technical assistance form of military training and even supply of military hardware. Health
personnel and different categories of patients patronizing public health providers are the main
beneficiaries of technical assistance offered by China mainly in the roll-back malaria programme.
Nigerian academia have also benefited from the cooperation arrangement between Nigeria and
China especially in the area of exchange programmes and promotion of the different culture.
III. Investment Relations
Positive developments have been recently recorded in the net FDI as it has doubled from US$3
billion in 2003 to more than US$6 billion in 2005. The share of the oil and gas sector was about 75
percent. The developments in the non-oil FDI is also significant as this component increased from
about $0.3 billion in 2003 to about $1.7 billion in 2005. Three related types of efforts explain the
observed positive developments: change in FDI regime; second, privatization programme of the
government; and third, the aggressive drive of government in attracting FDI into the country. The
recent developments notwithstanding, there is a huge investment gap in the development of the
Nigerian economy and the required investment can only be expected after the investment climate
has improved.
Our approach in this section is to review Chinese investment in Nigeria with a view to describing
its size, composition and significance. Data permitting the analysis would cover the relative size of
Chinese FDI compared to other sources of FDI, and the composition of the Chinese FDI with a
view to revealing relative sectoral preferences. This is necessary in order to characterize the nature
of investment and consequently assist in drawing inferences on the possible benefits of such
activities to the host country: Nigeria.
Trend in Chinese FDI inflow to Nigeria
Available information points to a general upward trend in the inflow of FDI from China to Nigeria.
Table 2.1 presents a global picture of FDI inflow to Nigeria from different regions and China from
1999 to 2006. All the regions showed significant increase in FDI inflow from the 1999 level. Thus,
the upward increase in the aggregate FDI flows to Nigeria from about $190.61 million in 1999 to
about $4169.14 million in 2006 is a joint increase in the levels of FDI by all the regions.
Table 2.1: Foreign Direct Investment in Nigeria, 1999-2006, $ Million
Region/Country 1999 2000 2001 2002 2003 2004 2005 2006
North America 7.35 9.84 12.10 36.16 40.34 4354.14 5166.32 1601.28
South America 1.15 2.96 0.39 0.05 7.14 60.04 24.56 11.76
Asia/Pacific 2.94 5.93 4.45 5.17 1.54 32.12 47.29 39.63
China 0.02 1.08 2.39 0.0 0.05 0.51 1.88 5.50
Middle/Far East 7.41 2.75 10.92 5.30 6.74 23.27 21.22 13.39
Europe 164.95 136.46 98.86 200.24 293.66 2624.30 3084.68 2441.52
Africa 6.79 9.45 8.24 24.30 91.41 173.62 169.04 56.06
190.61 168.47 137.35 271.22 440.88 7268.00 8514.99 4169.14
Source: Based on data from Nigerian Investment Promotion Commission (NIPC)
- 5 -
Relative to other regions, South American region contributed the least to the level of FDI inflow to
Nigeria. This was followed by the Asia-Pacific region. By 2006, though the relative positions
remained unchanged as the South America maintained its position, FDI inflows from Asia Pacific
region have surpassed the inflows from the Middle and Far East region. Thus, between 1999 and
2006, FDI inflows from Asia- Pacific region to Nigeria increased at a higher rate than their similar
inflows from the Middle and Far East region. This suggests increasing importance of China in the
observed trend. A further analysis of inflow of FDI from this region revealed that although China
ranked 5th in the magnitude of FDI in flows from the region to Nigeria behind India, Singapore,
Hong Kong, and Japan in that order, the country seems set to overtake these leading countries. This
is not farfetched given that Chinese FDI inflows to Nigeria increased from an average of $0.55
million in 1999-2000 to about $5.5 million in 2006. This is a tenfold increase compared to 9-fold
increase by the region as a whole.
Composition of Chinese FDI in Nigeria
Although, information about Chinese activities in the country points to increasing economic (trade,
commerce and investment), social (health and education) and technical relation, the composition of
Chinese FDI into Nigeria is fragmented. According to a source: China has set up over 30 solely
owned companies or joint venture in Nigeria actively involved in the construction, oil and gas,
technology, services and education sectors of the Nigerian economy. Indeed the increased Chinese
economic interests in Nigeria can be broadly classified into two: private and public. According to
information obtained from the Nigerian Investment Promotion Commission (NIPC), Chinese
private FDI is composed of agro-allied industry, manufacturing and communications sectors. On
one hand, some of these investments are joint venture mainly between Chinese and Nigerian
investors4. On the other hand, some are wholly foreign owned either wholly by the Chinese5 or in
partnership with other foreign investors.6 Some of the Chinese investments have also benefited
from investment incentives in the country such as pioneer status and expatriate quotas have been
granted to some of these companies (see Table 2.2).
Thus in 2005, the official record by Nigeria was $1.88 million FDI inflow from China. This seems
to be at variance with the impression created in the media. Various explanations can be adduced for
the seemingly paucity of observed figure: First, the upsurge in Chinese FDI inflow to Nigeria
occurred only in the recent time i.e. between 2006 and 2008, a period that is not covered by the
available data. Second, there is also the possibility that the promises and declarations captured by
the media did not eventually materialised. A case in point is the sales of Kaduna Refinery that was
announced in January 2006. It was meant to be a $2.3 billion worth of investment by the Chinese
state controlled energy company, CNOOC. By March 2007, the government was considering a
review of the deal.
The “public” investment and economic activities of Chinese in Nigeria have also gained
prominence in recent time. This is not unexpected given the high profile witnessed at the political
level (see the introduction to this study). This type of investment spanned different areas of the
Nigerian economy and prominent among them are those in oil and gas, construction especially
building of infrastructure. Table 2.3 lists some of the Chinese investments and projects in Nigeria.
There is the need to distinguish between investment, loan and contracts. This, however, requires
further insight to data. Currently available data do not offer sufficient information. For example, a
4 See table 2.2, Firm number 1
5 See table 2.2, Firms number 2 to 4
6 See table 2.2, Firm number 5
- 6 -
further probing of the deal to refurbish the Nigerian railways by the Chinese reveals that it has a
soft loan component.
FDI has a host of advantages including augmentation of domestic capital; transfer of technology,
knowledge and skills; promotion of competition and innovation; and enhancing export
performance. These must be weighed against other issues such as anti-competitive and restrictive
business practices; tax avoidance and abusive transfer pricing; volatile flows of investment and
related payments deleterious for balance of payments; transfer of polluting activities and
technologies; and excessive influence on economic affairs with possible negative effects on
industrial development and national security.
Table 2.2: Some Characteristics of Chinese Companies listed in 2005
Company
Name
Origin Nature of Business Nature of
Investment7
Level of
Investment
Employment
Generation
Happy Chef
Restaurant Ltd
Chinese &
Nigerians
Foods and Restaurant Business JV N20million 35
Plas Alliance
Company Ltd.
Chinese Manufacturing of Rubber Bags & Shoes WFO N75million 170
Royal Motors
Company Ltd
Chinese Assembling of Motorcycles WFO N10 million 1000
Sun Lung
Industries (Nigeria)
Ltd
Chinese Manufacture, import, and distribution of
all types of telecommunication, electronic
goods, telecomm materials, instrument,
musical instruments,
WFO N20 Million 75
ZTE Nigeria
Investment Ltd
1 Chinese
1Australian
Production, Sales, Services, Investment
related to Telecommunications
WFO N5 Million 136
Source: NIPC
A country desirous of hosting FDI must of necessity institute policies aimed at maximizing the
direct and indirect benefits as well as in minimizing the possible negative impacts. A litmus test for
gauging the motive of FDI is to classify such investments into resource-seeking, market-seeking or
efficiency-seeking. Efficiency-seeking FDI is preferred to other forms at least from the perspective
of the host country. However, for a country to attract efficiency-seeking type of FDI
macroeconomic stability must be ensured and distinct, predictable and easy-to-access policy
environment including incentives must be instituted.
Giving the list of private FDI and the sectoral concentration, efficiency motive may not be the
driving force of inflow of Chinese FDI in the Nigerian economy. From the list of public FDI,
resource-seeking motive cannot be ruled out. However, there are other categories of FDI that
cannot neatly fit into resource-seeking class. These include those in the area of building
infrastructure.
A veritable channel for optimal benefit is in the involvement of indigenous entrepreneurs in the
affairs of the particular firm. A joint venture has higher potential of positive impact in the host
economy. Beyond, the involvement of indigenous entrepreneurs at the management level, local
expertise and other work force are the channels through which technology is transferred and
technological capacity is developed.
Chinese firms in Nigeria have been criticized for being “closed” as they hardly employ local
experts. There are even submission that they mal-treat their workers. According to a report, the
7 JV = Joint Venture, WFO = Wholly Foreign Owned
- 7 -
conditions of employment of Nigerians in Chinese firms neither conform with the Nigeria Labour
Laws nor to that of the International Labour Organisation (ILO). The Report also alleged that
technology transfer from Chinese FDI is insignificant because most of the Chinese firms bring into
the country finished products and complete equipment with Chinese technicians. In a nutshell the
expected benefits may not be realized. The lesson is for the country not only to design appropriate
policies and regulations but also to ensure that these are implemented.
Although some of the Chinese investments are in critical areas of the Nigerian economy especially
in infrastructure (telecommunications, water, electricity, housing, etc.) hence they have high social
contents. However, there are reservations about the activities of Chinese investors especially those
who are engaged in manufacturing. Such complaints include sharp practices such as importation
and production of sub standard products, and lack of respect for their workers.
However, the quest for oil and gas by the Chinese seems to be of importance in the resurgence of
the current wave of relations. Consequently, Chinese nationals are not immune from the spate of
social unrest in the Niger Delta (the area where oil and gas are located in Nigeria). Some of the
Chinese oil workers were recently abducted by militants who are agitating for a more equitable
distribution of resources in the country.
Table 2.3: Some of the Chinese Investment and Projects in Nigeria
Description Value
China National Overseas Oil Company Limited8 (CNOOC) 45% stake in OPL 246 in Offshore
deepwater oil field
$2.7 billion
Controlling shares in Kaduna Refinery
Modernisation of Nigeria’s one-track rail to standard gauge rail (Note: China has loaned Nigeria
$2.5 billion to finance the refurbishment of the railway system
$8.3 billion (1st
phase)
Financial support to Reliance Telecommunications Ltd. (RelTel) by China’s Development Bank
facilitated by Huawei Technologies
$20 million
Huawei equipment agreement with GV Telecoms/Prestel $250 million
III. Trade Relations
Size, Composition and Significance of Exports to China
Nigeria’s exports to China are spread over many and varied products which have been classified
according to the Standard International Trade Classification Revision 3 (SITC Rev. 3) shown on
Table 3.1. These products include food, animals, crude materials, oils, chemical products, and
manufactured products. Though the source of data did not show data on Nigeria’s exports to China
in 1995, data were recorded for 2000 and 2005. In 2000, four broad commodities were exported
totaling US$307.3 million, with the main export commodity being Mineral fuel and lubricants
which represented US$273.7 million. The next important export in 2000 was crude materials
excluding food and fuel which totaled US$33.3 million. The remaining two broad commodities
exported to China were quite insignificant with values between US$0.1 million and US$0.2
million. Thus, in terms of Nigeria’s exports to China, Mineral fuel and lubricants ranked first,
followed by crude materials excluding food and fuel. Beverages and live animals exports rank third
8 CNOOC is one of the four big oil companies created when China’s oil industry was restructured seven years ago.
Cited in BusinessDay Africa, January 16 2006.
- 8 -
while manufactured goods rank fourth. In terms of significance of Nigeria’s exports to China
relative to the world, Nigeria exported more crude materials excluding food and fuel to China as
this constituted 61.1%. Mineral Fuel and lubricants which constituted the main exports of Nigeria
to China in 2000 was a paltry 1.4% of Nigeria’s total world exports. In effect, out of US$20.3
billion total Nigeria’s exports, only 1.5% was exported to China.
Nigeria’s exports position was more impressive in 2005. The country’s exports more than doubled
the value in 2000; this accounted for by all the products, from US$20.3 billion in 2000 to
US$44.4billion in 2005. In contrast, though exports to China increased to US$526.9 million in
2005, the increase was not as much as that of Nigeria’s total exports. The composition of exports to
China in 2005 was not very different from that of 2000 but experienced some repositioning of
certain broad products. Thus, mineral fuel and lubricants still ranked first followed in ranking by
crude materials excluding food and fuel. However, manufactured goods, which ranked last in 2000,
displaced food and live animals while two broad products; chemicals, and miscellaneous
manufactures, featured in 2005. Also, exports of crude materials excluding food and fuel reduced
between 2000 and 2005. The proportion of Nigeria’s exports destined for China reduced in 2005
even when the absolute value showed an increase. Nigeria’s export to China in 2005 was 1.2% of
its total exports which represented a reduction compared to 2000. The export destinations appeared
to have been more fairly diversified in 2005, as areas where exports to China was dominant, such as
crude materials excluding food and fuel, became insignificant while China gained positions in such
other areas as food and live animals, chemicals, manufactured goods and miscellaneous
manufactures. In other words, even though Nigeria’s exports to China relative to the rest of the
world dwindled in 2005, Nigeria exported more varieties of products to China compared to earlier
periods.
In effect, producers and exporters of those broad categories of products whose exports increased
between 2000 and 2005 are better off as they earned additional incomes. These include producers
and exporters of food and live animals, mineral fuel/lubricants, chemicals, manufactured goods,
and miscellaneous manufactures. Nigerian producers and exporters of crude materials excluding
food and fuel lost export market share in China and thus were worse off in 2005.
Table 3.1: China’s Share of Nigeria’s Exports (US$ million)
1995 2000 2005 1995 2000 2005
Rev. 3 World China World China World China
China’s Share of
Nigeria’s Imports
0 Food & live animals 293.9 0.0 205.4 0.2 592.6 1.8 0.0 0.1 0.3
1 Beverages and tobacco 1.7 0.0 1.3 0.0 3.9 0.0 0.0 0.0 0.0
2 Crude mater.ex food/fuel 262.4 0.0 54.5 33.3 304.0 12.6 0.0 61.1 4.1
3 Mineral fuel/lubricants 11189.8 0.0 19950.5 273.7 43054.7 503.9 0.0 1.4 1.2
4 Animal/veg oil/fat/wax 0.1 0.0 2.6 0.0 1.0 0.0 0.0 0.0 0.0
5 Chemicals/products n.e.s 38.6 0.0 8.6 0.0 15.6 0.2 0.0 0.0 1.5
6 Manufactured goods 347.3 0.0 10.0 0.1 255.4 8.2 0.0 0.6 3.2
7 Machinery/transp equipmt 185.9 0.0 70.3 0.0 114.7 0.0 0.0 0.0 0.0
8 Miscellaneous manuf arts 15.7 0.0 9.1 0.0 26.9 0.2 0.0 0.0 0.6
9 Commodities nes 4.4 0.0 0.0 0.0 0.8 0.0 0.0 0.0 0.0
Total Export 12339.7 0.0 20312.3 307.3 44369.6 526.9 0.0 1.5 1.2
Source: World Integrated Trade Solution (WITS) database, 2007
- 9 -
Size, Composition and Significance of Imports from China
Nigeria’s total imports increased from US$5.3 billion in 1996 through US$5.8billion in 2000 to
US$17.7billion in 2005 (Table 3.2). The dramatic increase of Nigeria’s total imports between 2000
and 2005 was also reflected in the country’s imports from China which rose phenomenally from as
little as US$252million in 2000 to US$2.3billion in 2005. Nigeria imports almost all of the broad
categories of products from China. In 2005, imports of machinery and transport equipment ranked
first followed by manufactured goods, miscellaneous manufactures, chemicals and food and live
animals. In trend terms, the composition of Nigeria’s imports has changed quite a bit. In 1996 for
example, chemical products imports ranked second only to machinery and transport equipment
while in 2000, manufactured products replaced chemicals in second place. Machinery and transport
equipment imports thus ranked highest in all the reference years.
This picture altered when China’s share of Nigeria’s total import is considered. While that share
rose successively from 1996 to 2005 from 3.5% to 13%, not all broad categories of goods imported
from China maintained such consistent increase. This is especially the case of mineral
fuels/lubricants, and animal/ vegetable oil/fat/wax. Furthermore, when the broad categories are
considered, Nigeria imported more of miscellaneous manufactures from China relative to the rest of
the world. This rose from 7.8% in 1996 to 30.6% in 2005. China’s share of Nigeria’s imports also
rose consecutively in food and live animals, as well as beverages and tobacco (both minimally);
crude materials excluding food and fuel, manufactured goods, machinery and transport equipment,
and miscellaneous manufactures (all four substantially). Thus, in terms of stakeholders’ analysis,
countries which hitherto exported these products to Nigeria have lost their market share in Nigeria
to China as Nigeria increasingly look towards China for the importation of these products.
Table 3.2: China’s Share of Nigeria’s Imports (US$ million)
1996 2000 2005 1996 2000 2005
SITC R. 3 Product Name World China World China World China China's share of Nigeria's imports
0 Food & live animals 885.9 3.5 1098.0 12.7 2140.6 29.8 0.4 1.2 1.4
1 Beverages and tobacco 10.8 0.0 34.2 0.3 69.4 0.7 0.0 0.9 1.0
2 Crude mater.ex food/fuel 121.9 1.8 94.0 1.8 120.4 8.9 1.5 1.9 7.4
3 Mineral fuel/lubricants 70.9 0.0 100.8 0.3 2396.7 1.0 0.0 0.3 0.04
4 Animal/veg oil/fat/wax 37.2 0.0 23.3 0.05 64.4 0.04 0.1 0.2 0.1
5 Chemicals/products n.e.s 981.3 59.6 1176.5 46.3 2085.5 174.6 6.1 3.9 8.4
6 Manufactured goods 1031.5 30.7 1095.5 53.8 3297.8 566.0 3.0 4.9 17.2
7 Machinery/transp equipmt 1876.7 66.2 1955.1 98.1 6600.0 1229.7 3.5 5.0 18.6
8 Miscellaneous manuf arts 296.1 23.2 238.4 39.4 948.7 290.1 7.8 16.5 30.6
9 Commodities nes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total Imports 5312.1 185.1 5815.8 252.7 17723.5 2300.8 3.5 4.3 13.0
Source: World Integrated Trade Solution (WITS) database, 2007
Top 10 Export and Import Commodities
The top 10 export and import commodities are indicated on Tables 3.3 and 3.4. Mineral fuels, oils
and related products tops the list of top 10 exports followed with substantial distance by ores, slag
and ash, as well as copper and articles thereof. In effect, mineral products constitute the first three
export products of Nigeria to China. Cocoa and cocoa preparations was a distant fourth followed by
cotton (5th rank), and oil seed etc (sixth). The top six export products are primary commodities
- 10 -
made up of mineral and agricultural products. The last four commodities in the top ten list are agroallied
manufactured goods whose individual export values are less than $1 million dollars.
Table 3.3: Top 10 Export Commodities (2005)
Product Name Simple Average Tariff ($ million) Share (%) Ranking
Total Trade 9.3 526.9 100.0
Mineral fuels, oils & product of their distillati 2.5 503.9 95.64 1
Ores, slag and ash. 0.2 7.4 1.41 2
Copper and articles thereof. 3.7 1.9 0.35 3
Cocoa and cocoa preparations. 8.0 1.6 0.31 4
Cotton. 11.4 1.5 0.28 5
Oil seed, oleagi fruits; miscell grain, seed, fru 5.0 1.1 0.22 6
Lac; gums, resins & other vegetable saps & extrac 15.0 0.4 0.08 7
Prepr feathers & down; arti flower; articles huma 17.5 0.2 0.03 8
Tanning/dyeing extract; tannins & derivs; pigm et 8.3 0.2 0.03 9
Pulp of wood/of other fibrous cellulosic mat; was 0.0 0.1 0.03 10
Source: Appendix Table 3.1
In contrast to the nature of Nigeria’s top 10 export commodities, the top 10 import commodities
from China are all manufactured goods. Top on the list are electrical machinery equipment parts,
sound records followed closely by vehicles, etc, as well as nuclear reactors, boilers, machinery and
mechanical appliances. Coming at a distant fourth are articles of iron or steel followed by plastics
and articles thereof. Organic chemicals and articles of apparel and clothing accessories almost have
equal ranking. Included in the lower part of the list are ceramic products as well as inorganic
chemicals and radioactive elements.
Table 3.4: Top 10 Import Commodities (2005)
HS Chpt Product Name Simple Average tariff $ million Share (%) Ranking
Total Total Trade 12 2301 100
85 Electrical mchy equip parts thereof; sound record 11 551 24.0 1
87 Vehicles o/t railw/tramw roll-stock, pts & access 10 437 19.0 2
84 Nuclear reactors, boilers, mchy & mech appliance; 3 257 11.2 3
73 Articles of iron or steel. 19 76 3.3 4
39 Plastics and articles thereof. 13 51 2.2 5
29 Organic chemicals. 5 40 1.7 6
62 Art of apparel & clothing access, not knitted/cro 20 39 1.7 7
67 Prepr feathers & down; arti flower; articles huma 20 31 1.3 8
69 Ceramic products. 19 31 1.3 9
28 Inorgn chem; compds of prec mtl, radioact element 5 30 1.3 10
Source: Appendix Table 3.2
IV. Aid and other relations
Economic relations between Nigeria and China date back to 1971 when the two countries signed
the Joint Communiqué on the Establishment of Diplomatic Relations. Currently, China requires
Nigeria’s oil to fuel its economic expansion while Nigeria seeks Chinese expertise, finance,
technology and industrial goods as well as market for its non-oil export. Some technical and
financial assistance have been rendered by the two countries to support each other. For instance,
during the visit of China President (President Hu Jintao) visit to Nigeria in April 2006, Nigeria and
- 11 -
China signed four Agreements and three Memoranda of understanding (MOUs) on a range of
programmes to enhance their economic ties.
Available data show that some of the technical and financial assistance provided by China for
Nigeria in recent times are in the areas of health, education, communication and infrastructural
development. In the area of health, China supported Nigeria’s Rollback malaria programme with
anti-malarial drugs and treated mosquito nets worth about N400 million in 2002. In an attempt to
further support the programme in 2006, China signed an MOU with government to supply antimalaria
drugs worth N83.6 million.
In the area of education, China signed an MOU in 2006 with the Nigerian government to provide
about N670 million for the training of 50 Nigerian officials and medical personnel on
comprehensive malaria prevention and control. Further, some educational institutions in Nigeria
have established linkages with China with a view to showcasing the Chinese culture, landscape and
innovations. For instance, in collaboration with the Chinese Embassy, Abuja, the Federal
Polytechnic, Offa organised an exhibition on Chinese Culture and Landscape to advance the
cultural bond between the two countries. Similarly, China is working with the Nnamdi Azikiwe
University, Awka to provide Chinese language teaching to Nigerian students. Under this scheme,
the Chinese government is to fully sponsor the training of the university’s staff to study Mandarin
in China up to Master’s and Doctorate Degrees levels. This scheme is also characterized by
frequent exchanges of cultural troupes and students.
In 2006, a memorandum of understanding on the provision of National Information
Communication Technology Infrastructure Backbone was signed between the Federal Ministry of
Science and Technology and Huwaei Technologies. In order to support infrastructural development
in Nigeria, China through its Export Import Bank entered into a financing agreement (of N8.36
billion concessionary export grants) with Nigeria.
V. Summary and conclusion
The China-Nigeria relations as shown in the proceeding sections covered different facets of the
Nigerian economy. The recent resurgence in the relationship has been attributed to improve and
deliberate mutual efforts at the highest political levels.
Chinese FDI inflows to Nigeria have been on the increase in recent years. A ten-fold increase in the
flow of Chinese into Nigeria between 1999 and 2006 was recorded. Compare to other sources of
FDI inflows to Nigeria, Chinese FDI inflows are in the range of about 0.13% of the total inflow of
FDI in 2006. The investments from China are into manufacturing, oil and gas, telecommunication,
building and construction.
Thus, while some of the Chinese investments and activities in the country are directed at addressing
critical gap in the provision of basic infrastructure, these are not comparable to the level at which
Chinese are seeking Nigeria’s oil and gas and other raw materials.
In the area of trade relations, similar recent upsurge was captured by the available data and pieces
of information. Nigeria’s export to China is dominated by crude oil to the tune of about 95%. In
terms of relative share of market, China constitutes only about 1.5% of the value of Nigeria’s
exports in 2000 and 2005. Nigeria’s import from China is more diversified than the imports. Three
product groups: electrical machinery equipment; vehicles and nuclear reactors, boilers machinery
and mechanical appliances jointly accounted for over 50% of Nigeria’s imports from China. The
observed structure of trade pattern is inconsistent with the Nigeria’s quest to export manufactured
- 12 -
or processed products. The need to diversify export products may be an uphill task given China’s
preference for raw materials and fuel and gas. More worrisome is skewed balance of payments
position which has consistently been in favour of China. This suggests the need to examine the
structure of tariff and non-tariff barriers facing Nigeria’s exports to China. Perhaps more
importantly is an analysis of constraints facing producers and exporters in responding fully to
market openings.
Although the brief analysis presented in this report points to a similar trend in the general trade and
investment patterns with the traditional trade partners there is a strong need to critically examine in
details Nigeria-China relationship. The review presented in this paper is general and based on
incomplete information. An investigation of some of the issues raised probably by conducting a
census of Chinese interest in Nigeria is capable of shedding more light.
- 13 -
Appendix Table 3.1: Export Commodities by HS Chapters
Product Name Simple
Average
Tariff
($million) Share Ranking
Total Trade 9.3 526.9 100.0
Mineral fuels, oils & product of their distillati 2.5 503.9 95.64 1
Ores, slag and ash. 0.2 7.4 1.41 2
Copper and articles thereof. 3.7 1.9 0.35 3
Cocoa and cocoa preparations. 8.0 1.6 0.31 4
Cotton. 11.4 1.5 0.28 5
Oil seed, oleagi fruits; miscell grain, seed, fru 5.0 1.1 0.22 6
Lac; gums, resins & other vegetable saps & extrac 15.0 0.4 0.08 7
Prepr feathers & down; arti flower; articles huma 17.5 0.2 0.03 8
Tanning/dyeing extract; tannins & derivs; pigm et 8.3 0.2 0.03 9
Pulp of wood/of other fibrous cellulosic mat; was 0.0 0.1 0.03 10
Coffee, tea, matï and spices. 17.5 0.1 0.01 11
Plastics and articles thereof. 9.7 0.1 0.01 12
Aluminium and articles thereof. 3.8 0.1 0.01 13
Fish & crustacean, mollusc & other aquatic invert 12.0 0.0 0.01 14
Edible fruit and nuts; peel of citrus fruit or me 20.0 0.0 0.01 15
Miscellaneous articles of base metal. 15.3 0.0 0.00 16
Nuclear reactors, boilers, mchy & mech appliance; 9.4 0.0 0.00 17
Miscellaneous chemical products. 6.5 0.0 0.00 18
Salt; sulphur; earth & ston; plastering mat; lime 2.8 0.0 0.00 19
Vehicles o/t railw/tramw roll-stock, pts & access 20.1 0.0 0.00 20
Articles of iron or steel. 9.8 0.0 0.00 21
Tool, implement, cutlery, spoon & fork, of base m 10.3 0.0 0.00 22
Electrical mchy equip parts thereof; sound record 5.4 0.0 0.00 23
Miscellaneous manufactured articles. 25.0 0.0 0.00 24
Optical, photo, cine, meas, checking, precision, 5.0 0.0 0.00 25
Furniture; bedding, mattress, matt support, cushi 20.0 0.0 0.00 26
Prod.mill.indust; malt; starches; inulin; wheat g 35.5 0.0 0.00 27
Soap, organic surface-active agents, washing prep 10.0 0.0 0.00 28
Art of apparel & clothing access, not knitted/cro 16.0 0.0 0.00 29
Source: World Integrated Trade Solution (WITS) database, 2007
- 14 -
Appendix Table 3.2: Import Commodities by HS Chapters
Prod Product Name Simple
Average
($milli
on)
Share
(%)
Rankin
g
Total
Total Trade 12 2301 100
85 Electrical mchy equip parts thereof; sound record 11 551 24 1
87 Vehicles o/t railw/tramw roll-stock, pts & access 10 437 19 2
84 Nuclear reactors, boilers, mchy & mech appliance; 3 257 11 3
73 Articles of iron or steel. 19 76 3 4
39 Plastics and articles thereof. 13 51 2 5
29 Organic chemicals. 5 40 2 6
62 Art of apparel & clothing access, not knitted/cro 20 39 2 7
67 Prepr feathers & down; arti flower; articles huma 20 31 1 8
69 Ceramic products. 19 31 1 9
28 Inorgn chem; compds of prec mtl, radioact element 5 30 1 10
52 Cotton. 17 30 1 11
76 Aluminium and articles thereof. 20 30 1 12
94 Furniture; bedding, mattress, matt support, cushi 18 29 1 13
25 Salt; sulphur; earth & ston; plastering mat; lime 8 27 1 14
90 Optical, photo, cine, meas, checking, precision, 4 26 1 15
30 Pharmaceutical products. 9 26 1 16
83 Miscellaneous articles of base metal. 18 24 1 17
55 Man-made staple fibres. 18 23 1 18
38 Miscellaneous chemical products. 8 22 1 19
10 Cereals 50 19 1 20
42 Articles of leather; saddlery/harness; travel goo 16 18 1 21
96 Miscellaneous manufactured articles. 19 17 1 22
34 Soap, organic surface-active agents, washing prep 17 16 1 23
82 Tool, implement, cutlery, spoon & fork, of base m 13 15 1 24
61 Art of apparel & clothing access, knitted or croc 20 13 1 25
72 Iron and steel. 18 12 1 26
32 Tanning/dyeing extract; tannins & derivs; pigm et 10 10 0 27
66 Umbrellas, walking-sticks, seat-sticks, whips, et 18 7 0 28
21 Miscellaneous edible preparations. 15 7 0 29
59 Impregnated, coated, cover/laminated textile fabr 16 7 0 30
53 Other vegetable textile fibres; paper yarn & wove 20 7 0 31
63 Other made up textile articles; sets; worn clothi 20 5 0 32
91 Clocks and watches and parts thereof. 20 5 0 33
49 Printed books, newspapers, pictures & other produ 9 4 0 34
95 Toys, games & sports requisites; parts & access t 20 4 0 35
60 Knitted or crocheted fabrics. 20 4 0 36
37 Photographic or cinematographic goods. 17 4 0 37
92 Musical instruments; parts and access of such art 12 4 0 38
35 Albuminoidal subs; modified starches; glues; enzy 9 3 0 39
33 Essential oils & resinoids; perf, cosmetic/toilet 16 3 0 40
74 Copper and articles thereof. 12 2 0 41
17 Sugars and sugar confectionery. 15 2 0 42
11 Prod.mill.indust; malt; starches; inulin; wheat g 35 2 0 43
27 Mineral fuels, oils & product of their distillati 6 1 0 44
89 Ships, boats and floating structures. 6 1 0 45
- 15