Chinese business interests and banking in Nigeria

This policy briefing examines the economic relationship between China and Nigeria, focusing on existing business interests and the potential for expanded Chinese investment in the Nigerian banking sector.

• China and Nigeria maintain extensive economic ties across various sectors, including construction, retailing, manufacturing, and oil production. Trade volume grew 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 made its largest ever foreign investment in an offshore deepwater oil field, with profits shared 70:30 in favour of CNOOC.
• Several bilateral projects have been marred by controversy and corruption, specifically the national railway project (which saw a $528.60 million agreement in 1995) and steel projects in Ajaokuta and Aladja.
• Chinese business activity in Nigeria includes 30 companies operating in technology, services, and education. Notable entries include ZTE Corporation's 2005 deal with Nigeria Telecommunication, Huawei's operations, and the construction of the Nigerian Communications Commission building in Abuja by the Chinese Civil Engineering and Construction Company.
• Current banking links are limited but growing. Three Nigerian banks have formal links with China: First Bank (which has a licence to operate in China), Standard IBTC (linked to ICBC, which holds a 20% stake in the Standard Bank Group), and the Nigerian Export–Import Bank.
• There are significant opportunities for Chinese investment in the Nigerian banking sector, particularly in banks rescued by the Central Bank of Nigeria (CBN) such as Wema and Union, or profitable banks like Skye and Sterling. CBN Governor Lamido Sanusi indicated he would not rule out foreign banks owning Nigerian banks outright.

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} }