Chinese business interests and banking in Nigeria

The policy brief examines the broad economic relationship between China and Nigeria, highlighting significant investments in oil, infrastructure, and agriculture, while identifying the banking sector as an under-developed area for future cooperation. It details existing financial links, such as the involvement of the Industrial and Commercial Bank of China (ICBC) and First Bank, and suggests that current reforms in the Nigerian banking sector create opportunities for Chinese acquisitions and investments. The author notes that while past projects were often marred by corruption, the banking sector offers a new avenue for mutual economic benefit and regional expansion.

• China and Nigeria maintain extensive economic ties across multiple sectors, including construction, retailing, manufacturing, and oil production, with trade volume growing from $178 million in 1996 to $2.83 billion in 2007.
• Oil exploration is the most extensive and potentially problematic area of cooperation; China invested $4 billion in infrastructure in exchange for first refusal rights on four oil blocks, and CNOOC's investment in an offshore deepwater oil field is reported as its largest foreign investment ever.
• Bilateral relations have been hindered by corruption and poor contract terms, specifically regarding the national railway project (reactivated in 1995 with a $528.60 million agreement) and steel projects in Ajaokuta and Aladja.
• Current banking links are limited but include the Industrial and Commercial Bank of China (ICBC) acquiring a 20% stake in the Standard Bank Group (which includes Standard IBTC Nigeria), and First Bank of Nigeria receiving a licence to operate in China.
• The author identifies specific Nigerian banks as potential investment targets for China: rescued banks such as Wema and Union due to their branch networks, or profitable banks like Skye and Sterling due to high corporate governance standards.
• Central Bank of Nigeria (CBN) Governor Lamido Sanusi indicated a more open stance toward foreign ownership than his predecessor, specifically mentioning China Construction Bank as an entity he would like to see acquiring ownership of Nigerian banks.

APA

Alao, A. (2010). Chinese business interests and banking in Nigeria. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2010/08/Policy-Briefing-20.pdf

Chicago

Alao, Abiodun. Chinese business interests and banking in Nigeria. South African Institute of International Affairs, 2010. https://saiia.org.za/wp-content/uploads/2010/08/Policy-Briefing-20.pdf.

Wikipedia

{{cite report |last1=Alao |first1=Abiodun |title=Chinese business interests and banking in Nigeria |publisher=South African Institute of International Affairs |date=20 July 2010 |url=https://saiia.org.za/wp-content/uploads/2010/08/Policy-Briefing-20.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{alao2010chinese, author = {Alao, Abiodun}, title = {{Chinese business interests and banking in Nigeria}}, institution = {South African Institute of International Affairs}, year = {2010}, month = jul, url = {https://saiia.org.za/wp-content/uploads/2010/08/Policy-Briefing-20.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }