Federal Government Moves To Reverse Nigeria’s $20bn Trade Deficit With China

The Nigerian government is taking steps to address its significant trade deficit with China, currently standing at $20 billion. The government’s goal is to become a net exporter to China within the next five years.

Joseph Tegbe, Director-General and Global Liaison for the Nigeria-China Strategic Partnership, made this announcement during the opening ceremony of the China-Nigeria Infrastructure Cooperation Forum and the 18th China Engineering and Technology Exhibition in Abuja on Thursday. Tegbe highlighted that while the trade volume between Nigeria and China reached $22 billion by December 2023, the bulk of this trade (around $20 billion) consists of imports from China, resulting in a considerable trade imbalance.

Tegbe pointed to the disparity by comparing Nigeria’s trade with China to Brazil’s, noting that in 2023, Brazil, despite being China’s ninth-largest trading partner, exported $105 billion worth of goods to China, while China’s exports to Brazil totaled $59 billion. This comparison underscores Nigeria’s potential to increase exports to China.

He emphasized that China, despite having only 10% of the world’s arable land, successfully feeds 1.2 billion people, while Africa, which holds 60% of the world’s arable land, still struggles with food security. Tegbe sees this as an opportunity for Nigeria to adopt advanced Chinese methods and technology to resolve food challenges in Africa. He expressed his belief that within five years, Nigeria could increase its trade volume with China and become a net exporter.

The forum marked an important moment in the Nigeria-China relationship, following the Forum on China-Africa Cooperation (FOCAC) and the recent discussions between Chinese President Xi Jinping and Nigerian President Bola Tinubu. Tegbe noted that the partnership between the two nations is evolving into a “Comprehensive Strategic Partnership” based on mutual trust, shared ambitions, and collaborative efforts.

Tegbe also pointed out that Nigeria’s industrialization could positively impact 25% of Africa, suggesting that a prosperous Nigeria would drive the economic development of the entire continent.

Chinese Ambassador to Nigeria, Yu Dunhai, reinforced Nigeria’s strategic importance to China, describing it as one of China’s largest engineering contract markets and trading partners in Africa. He highlighted the exhibition as a key step in implementing the outcomes of the recent Beijing summit and deepening cooperation between the two countries in areas such as engineering, biotechnology, green energy, and agriculture.

Senator Said Alkali, Nigeria’s Minister of Transportation, also underscored the significance of the exhibition, linking it to President Tinubu’s Renewed Hope Agenda, which emphasizes infrastructure development as a priority for the country’s growth.

This initiative reflects Nigeria’s determination to leverage its relationship with China to boost industrialization and address critical issues like food security and infrastructure development.