China remains Nigeria’s foremost trading partner, with Trade between the two nations reaching an impressive ₦7.38tn as of June 2024. This partnership, solidified by the 2018 Belt and Road cooperation agreement, has significantly advanced Nigeria’s Infrastructure and economic prospects. With the joint efforts of both countries, Nigeria has emerged as China’s largest contractor market in Africa, its second-largest trading partner, and a key Investment destination. President Bola Ahmed Tinubu’s September 2024 visit to China reinforced these ties, resulting in agreements aimed at enhancing financial systems and accelerating development.
The commitment of Nigeria to deepen global partnerships was further highlighted by its participation in the 2023 BRICS (Brazil, Russia, India, China, South Africa) Summit, held in South Africa under the theme “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism.” The summit marked a significant expansion of the bloc, which invited new members, including Egypt and Ethiopia, who officially joined in January 2024. This expansion demonstrates a shared goal to strengthen connections with African nations. Vice President Kashim Shettima later noted that Nigeria’s attendance and involvement in BRICS discussions reflect its readiness to foster growth-oriented partnerships.
Shettima attributes investment surge to strategic partnerships.
By mid-2024, foreign investment inflows from BRICS countries to Nigeria surged to $1.27bn, a substantial rise from $438.72m during the same period in 2023. Speaking at the 2024 China-Africa Inter-Bank Association (CAIBA) Forum, Vice President Kashim Shettima, represented by the Special Adviser to the President on General Duties, Dr. Aliyu Modibbo, described this growth as a testament to Nigeria’s strategic economic partnerships. He explained that these milestones “underscore the importance of deepening bilateral trade in China, particularly in strategic economic sectors,” emphasising that stronger ties with BRICS nations are vital for Nigeria’s sustainable development and economic resilience. Shettima’s remarks highlighted the mutual trust and expanding opportunities that strengthen Nigeria’s role as an attractive destination for international investments.
Moreover, China’s contributions to Africa, particularly in Nigeria, extend beyond trade to include infrastructure projects and support for local businesses. Wang Weidong, Vice President of the China Development Bank, highlighted that these initiatives have created 270,000 jobs across 33 African nations, reflecting China’s commitment to socio-economic transformation. In Nigeria, Chinese-backed companies such as OPay, with substantial assets, have thrived, especially during the 2022-2023 cash scarcity crisis when digital transactions became essential. Huawei has also significantly contributed to Nigeria’s ICT sector through partnerships and infrastructure projects. Huawei’s involvement has included the development of telecom networks, Data Center support, and cloud services.
FirstBank’s CEO praises CAIBA’s trade initiative.
Olusegun Alebiosu, First Bank Group CEO, commended the efforts of the China-Africa Inter-Bank Association (CAIBA) in enhancing cross-continental trade and investment. He emphasised FirstBank’s dedication to bridging cultural and business gaps, showcasing initiatives like the establishment of specialised Chinese desks staffed with Mandarin-speaking personnel. Alebiosu noted the institution’s plans to deepen its engagement in China through expansion to commercial hubs like Guangdong and Shanghai, reinforcing its commitment to supporting Chinese businesses across Africa. He expressed optimism that sustained collaboration could transform China-Africa relations into a more “powerful force for socio-economic and institutional development” than it is today.
Furthermore, Nigeria’s strengthened ties with BRICS reflect a broader trend across Africa, as nations such as Ethiopia and Egypt have also seen rising investments and collaboration from the bloc. This growing alignment is not just about boosting trade but also about building cooperative frameworks that address the developmental challenges facing the Global South. These partnerships are crucial for advancing sustainable economic models, fostering industrial growth, and improving socio-economic resilience in the face of global uncertainties. As such, the partnerships with BRICS offer opportunities for knowledge-sharing and infrastructural growth, essential for Africa’s long-term development.
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Overall, Nigeria’s evolving alliances with BRICS nations, particularly China, show the strategic benefits of such global partnerships. These collaborations are paving the way for increased industrialisation, enhanced infrastructure, and more inclusive economic growth. The shift towards deeper integration with the BRICS bloc is not only fostering Economic Diversification but also ensuring that Nigeria remains a vital player in regional and international trade, contributing to a more balanced global economic landscape. Through these efforts, Nigeria is positioning itself as a key participant in reshaping the narrative of development in the Global South.