The Federal Government may have mapped out strategies on how to maximise the plethora of trade and investment opportunities being offered by trade cooperation with the People’s Republic of China in order to address the “huge trade imbalance” between both countries.
Indications to this development emerged at the opening of the 2019 Belt and Road Initiative (BRI), a component part of the thriving Nigeria-China Economic and Trade Forum, where Nigeria’s Vice President Yemi Osinbajo said the Forum would deepen trade ties between both countries.
Represented by his special adviser on Economic Matters, Adeyemi Dipeolu, the Vice President noted that there was already substantial economic activity between both countries, with China being Nigeria’s largest trading partner in 2017 and with 25 percent of imports from that country.
“We expect in particular as relations are deepened that the funding provided to support Nigeria’s development will come increasingly in the form of investments rather than as loans”.
“We would also like to see greater co-operation between the private sector companies in both countries in order to leverage on their respective strengths”.
“The value of the exports to Nigeria was about $12.15 billion as compared to imports from Nigeria of about $721 million. The extent of Nigeria’s imports from China helps to explain the importance of the bilateral currency swap between both countries.
“The swap which is for 15 billion Chinese Yuan for N720 billion over a three-year period helps to facilitate trade between both countries, while reducing direct demand for third currencies,” Dipeolu said.
He stressed that under the platform of the Economic Recovery and Growth Plan (ERGP) initiated by the government of President Muhammadu Buhari, the Government drew insights from the Chinese model to bring about macroeconomic stability; and diversification of the productive base of the Nigerian economy.
According to him, the priorities of the ERGP would scale up China-Nigeria co-operation under the Belt and Road Initiative (BRI) in the areas of agriculture, food security, and energy sufficiency in power and petroleum products, transportation infrastructure and manufacturing.
The Belt and Road Initiative, also known as Silk Road Economic Belt and the 21st Maritime Silk Road, is an open and inclusive international platform provided by China with the principle of achieving shared growth and connectivity.
The BRI is a component part of the Forum for China- Africa Cooperation (FOCAC), held in September 2018, where Nigeria signed 13 agreements and Memoranda of Understanding with Chinese corporations under the BRI.
Dipeolu said that Nigeria sought to achieve under the Belt and Road Initiative, that China transits from a trading partner to a “strategic investor” through direct participation in Nigeria’s economy by Chinese firms.
The Charge d’Affaires, Chinese Embassy in Nigeria, Zhao Yong, during his remarks, said Nigeria-China co-operation would continue firmly under the BRI, stressing that Africa was “an indispensable part of the Belt and Road map.
“Next week, China will hold the Second Belt and Road Forum for International Co-operation in Beijing”.
“More than 1,500 distinguished guests from over 100 countries and international organisations are expected in Beijing to discuss topics of deepening Belt and Road co-operation between China and Belt and Road countries,” he said.
The Minister of Federal Capital Territory (FCT), Muhammad Bello, in message at the event said the forum was timely as Nigeria was in the process of diversifying its economy.
Bello, who was represented by Abubakar Sani Pai, said the country will continue to strategize to take advantage of all the BRI offered to achieve its economic diversification and infrastructural development goals.
