NIGERIA–CHINA TRADE RELATIONS: PROBLEMS AND PROSPECTS

Abstract

Nigeria–China trade relations have expanded significantly since Nigeria’s return to democratic governance in 1999, making China one of Nigeria’s most important trading partners. This paper examines the major problems and prospects of Nigeria–China trade relations between 1999 and 2023. It argues that although bilateral trade has grown rapidly, the relationship is constrained by structural challenges such as language barriers, insecurity, corruption, weak institutions, and a lack of strategic policy direction. These factors increase transaction costs, reduce technology transfer, create project delays, and weaken Nigeria’s bargaining position in economic agreements. Despite these constraints, the relationship presents significant opportunities in infrastructure development, industrialization, agriculture, technology transfer, and foreign direct investment. The paper concludes that the future of Nigeria–China trade relations depends largely on Nigeria’s ability to strengthen its institutions, develop coherent trade and industrial policies, and negotiate more strategically in order to achieve a more balanced and mutually beneficial partnership.