Nigeria’s heavy dependence on China as a primary source of imports has sparked fresh concerns among economists and trade analysts. According to the National Bureau of Statistics, China remains Nigeria’s highest trading partner on the import side, followed by India, the United States, the Netherlands, and the United Arab Emirates. The most traded commodities imported during the first quarter included gas oil, ordinary motor spirit, petroleum oils, crude cane sugar, and durum wheat.
Experts warn that this reliance on China poses significant risks to Nigeria’s economy. Johnson Chukwu, Group Managing Director of Cowry Asset Management, notes that any disruption in China’s supply chains, like those seen during the COVID-19 pandemic, could trigger a new wave of inflation and economic instability in Nigeria. “If there is a shutdown or supply chain disruption in China today, we’re going to have a major inflationary impact on the country,” Chukwu said.
This concern is compounded by the fact that Nigeria’s imports from China are largely finished goods, which can undermine the country’s efforts to boost industrialization. Experts argue that Nigeria’s over-reliance on imports has hindered the growth of its manufacturing sector, leading to a decline in domestic production and an increase in unemployment.
In recent years, Nigeria’s trade relationship with China has grown significantly, with bilateral trade reaching $18 billion in 2023. However, the trade imbalance between the two countries is skewed in China’s favor, with Chinese exports comprising approximately 80% of total bilateral trade. This has raised concerns about the potential for neo-colonial dominance and the impact on Nigeria’s economic sovereignty.
To mitigate these risks, experts recommend that Nigeria diversify its import sources and invest in domestic industries. By promoting local production and reducing reliance on imports, Nigeria can reduce its vulnerability to external shocks and promote sustainable economic growth. Additionally, experts suggest that Nigeria should renegotiate trade agreements with China to ensure mutual benefits and prioritize investments in diversified sectors.
The Nigerian government has emphasized the need to address the country’s infrastructure deficits and promote economic diversification. By investing in key sectors such as agriculture, manufacturing, and technology, Nigeria can reduce its reliance on oil exports and promote sustainable economic growth. However, achieving this goal will require a comprehensive strategy that addresses the root causes of Nigeria’s economic challenges and promotes a more diversified and resilient economy.
