China-Africa Partnership
As the Forum on China-Africa Cooperation (FOCAC) 2024 summit continues in Beijing, Nigeria’s President Bola Tinubu has praised the economic partnership between Africa and China, highlighting a staggering $280 billion in revenue. However, a closer examination of this relationship, particularly its impact on Nigeria, reveals a complex and often troubling picture.
The Promise vs. The Reality
While the China-Africa partnership promises economic growth and development, the reality for many Nigerians tells a different story:
Persistent Unemployment: Despite Chinese investments, Nigeria’s unemployment rate remains alarmingly high. As of 2024, unofficial estimates suggest that unemployment in Nigeria hovers around 35-40%, one of the highest rates globally.
Deepening Poverty: The National Bureau of Statistics reports that over 40% of Nigerians live in extreme poverty. This figure has not significantly improved despite years of Chinese investment.
Limited Technology Transfer: While some knowledge transfer has occurred, it has not been sufficient to create a self-sustaining, innovative Nigerian workforce.
The Chinese Footprint in Nigeria
Chinese presence in Nigeria has grown substantially over the past two decades:
Infrastructure Projects: China has funded and constructed numerous infrastructure projects, including railways and power plants. However, these projects often employ Chinese workers, limiting job creation for Nigerians.
Resource Extraction: Chinese companies have heavily invested in Nigeria’s oil and mineral sectors. Critics argue this perpetuates Nigeria’s dependence on raw material exports rather than developing value-added industries.
Debt Burden: Nigeria’s debt to China has grown significantly. As of 2024, it’s estimated that Nigeria owes China over $3.5 billion, raising concerns about long-term economic sovereignty.
Impact on Nigerian Businesses and Workers
The influx of Chinese goods and businesses has had mixed effects:
Market Flooding: Cheap Chinese imports have flooded Nigerian markets, often undercutting local manufacturers and leading to job losses in the manufacturing sector.
Skills Gap: Many high-skilled positions in Chinese projects are filled by Chinese nationals, limiting opportunities for Nigerians to gain valuable experience and skills.
Informal Sector Disruption: The informal sector, which employs a significant portion of Nigerians, has been particularly hard hit by competition from Chinese small-scale entrepreneurs entering the market.
The Way Forward
For Nigeria to truly benefit from its partnership with China, several steps are crucial:
Local Content Laws: Stricter enforcement of local content laws to ensure more Nigerians are employed in Chinese projects.
Skills Development: Insist on comprehensive training programs as part of any investment deal to build local capacity.
Diversification: Focus on diversifying the economy beyond resource extraction to create more sustainable job opportunities.
Debt Review: Carefully review and renegotiate existing debt arrangements to ensure they align with Nigeria’s long-term economic interests.
Support for Local Businesses: Implement policies to protect and nurture local industries, allowing them to compete effectively.
While the China-Africa partnership, and specifically the China-Nigeria relationship, holds potential, the current reality for many Nigerians is far from the promised prosperity. As unemployment and poverty rates remain stubbornly high, it’s clear that the benefits of this partnership are not trickling down to the average Nigerian.
President Tinubu and future Nigerian leaders must approach this relationship with caution and prioritize the interests of Nigerian workers and businesses. Only through careful negotiation, strategic planning, and a focus on long-term sustainable development can Nigeria hope to turn the tide of unemployment and poverty that continues to plague its people.
Reference
Africa-China Partnership Generated $280bn In Revenue, Says Tinubu published in Channels By Lanre Lasisi