China: Nigeria’s industrial partner or neo-colonialist?
The narrative in many quarters is that China has become Nigeria’s (and Africa’s) new neo-colonialist.
By definition, neo-colonialism is a practice of using trade, economic power, globalisation and cultural imperialism to influence a developing country.
Many Nigerians argue that China fits the neo-colonialist nomenclature or bill due to the manner in which it bulldozes its way into the economy.
“China is helping Nigeria and Africa but like neo-colonialists, they build industries and railways but get trade incentives, which turn around to kill domestic manufacturers. This is why you find them mostly in special economic zones, where the focus is export,” said Matthew Ibeabuchi, CEO of MD Services Limited, a firm that deals in chemicals and corporate services.
Others who spoke with BusinessDay argued that China often had a way of dominating critical economic sectors in the country. They said China would hardly do anything for nothing.
One of the major issues also held against China is the country’s inability to halt substandard products from coming to Africa, especially Nigeria that has a large market and a population of 182 million people.
Muda Yusuf, director-general of Lagos Chamber of Commerce and Industry (LCCI), said it was however a question of regulation.
“It is what Nigerians ask that China produces. It is a question of strengthening our own institutions to make sure they do they properly regulate what comes in from China,” Yusuf said.
Ede Dafinone, chairman of the Manufacturers Association of Nigeria Export Group (MANEG, said it was a mix of Nigerians and Chinese that were importing fake and substandard products from China. “Nigerians go there and make their request and Chinese manufacturers give them what they want,” Dafinone said.
However, findings show that there may little truth in China being Nigeria’s neo-colonialist.
Liu Kan, Chinese Consul-General in Nigeria, said Chinese companies invested $1.79 billion in Africa’s most populous country in 2016.
“The main investors, which are more than 40 companies, include China National Offshore Oil Corporation, China National Petroleum Corporation and China Railway Construction Corporation,” Kan said.
Some analysts say China has ‘taken over’ some of Nigeria’s special economic zones especially the Lekki Free Zone in Lagos.
However, checks show that the special economic zone is not meant for China alone, as exporters willing to tap into export incentives provided by the Nigerian government can leverage the zone.
An example is Dangote Group, which is setting up a refinery in the zone.
However, checks further show that Chinese firms in the zone are setting up plants, employing Nigerians and bringing back foreign exchange to the cash-strapped Nigerian economy.
According to the World Bank report in 2010, Chinese firms had pumped in $254 million into the free trade zone. The report said the investment was made by Chinese light and textile industries. Chinese firms, led by Guangdong Xinguang, had also invested $220 million in Ogun, a nearby state to Lagos at 2010.
The Lagos State government, where Lekki Free Zone is located, said in March this year that China Africa Lekki Investment Limited (CALIL) would inject $64 million into Lekki Free Trade Zone before the 2017 fiscal year.
Industrialisation can hardly take place without railways. China Civil Engineering Construction Corporation has completed the Abuja-Kaduna standard gauge railway covering a distance of 186.5 km. The railway links the capital city Abuja and the northwestern state of Kaduna.
Yoon Jung Park, executive director of Chinese in Africa/ Africans in China Research Network, said at a recent media event in Addis Ababa, Ethiopia, that China had always been accused, especially in the West, of exploiting resources and the people of Africa but wondered if investors would leave their countries and put their money elsewhere on altruistic grounds.
ODINAKA ANUDU