Elephants, Ants and Superpowers: Nigeria’s Relations with China

The document analyzes the bilateral relationship between Nigeria and China, noting a shift in strategy following the transition from President Olusegun Obasanjo to Umaru Musa Yar’Adua. It argues that the 'oil for infrastructure' model failed due to Nigeria's electoral cycle and governance issues, leading China to adopt a lower-risk strategy of purchasing established oil companies. Despite political volatility, Chinese multinational companies continue to expand their market share in Nigeria's construction, telecommunications, and power sectors due to competitive pricing and access to state-backed credit.

• The 'oil for infrastructure' model, where Nigeria granted oil blocs to Chinese companies in exchange for infrastructure projects, is considered defunct. This model proved incompatible with the Nigerian electoral cycle, which alternates power between northern Muslim and southern Christian elites, leading the Yar’Adua administration to suspend or cancel many Obasanjo-era deals.
• China has shifted its strategy for acquiring Nigerian energy assets toward a lower-risk approach of purchasing established Western companies. A primary example is the June 2009 announcement that the China Petroleum and Chemical Corporation (Sinopec) would acquire Canada’s Addax Petroleum for $7.2 billion.
• Bilateral trade is characterized by a persistent and widening imbalance in China's favor. In 2008, bilateral trade reached $7.3 billion, with Chinese exports accounting for 93% of the total value.
• Nigerian exports to China are overwhelmingly dominated by oil products, comprising approximately 90% of the export value. Conversely, China exports a diverse range of goods to Nigeria, including electrical apparatus for telephony, motorcycles, and electric generators.
• Chinese multinational companies (MNCs) maintain a competitive advantage in Nigeria's construction, power, and telecommunications sectors due to their pricing, risk appetite, and access to extensive credit from Chinese state-owned banks, such as the Exim Bank.
• The Nigerian power sector is described as a 'national disaster,' with actual output averaging only 1,500–3,000 MW despite an installed capacity of 6,000 MW. Several Chinese-backed projects, such as the Olorunsogo and Omotosho gas-turbine stations, have proceeded, while the massive Mambilla hydro-electric project remains suspended.
• Chinese telecommunications firms Huawei and ZTE have aggressively entered the Nigerian market as equipment suppliers rather than network operators. While they compete fiercely, they collaborated on the $300 million National Rural Telephony Programme.
• The Lekki Free Trade Zone represents a significant joint venture between the Lagos State Government and a Chinese consortium led by CCECC. Unlike federal projects, it has avoided the Yar’Adua administration's reviews because it is a state-level initiative.
• There are widespread allegations in Nigeria regarding the poor quality of Chinese manufactured imports and the use of illegal business practices, including counterfeiting and smuggling, particularly in the textiles sector.

APA

Mthembu-Salter, G. (2009). Elephants, Ants and Superpowers: Nigeria’s Relations with China. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2009/09/Occasional-Paper-42.pdf

Chicago

Mthembu-Salter, Gregory. Elephants, Ants and Superpowers: Nigeria’s Relations with China. South African Institute of International Affairs, 2009. https://saiia.org.za/wp-content/uploads/2009/09/Occasional-Paper-42.pdf.

Wikipedia

{{cite report |last1=Mthembu-Salter |first1=Gregory |title=Elephants, Ants and Superpowers: Nigeria’s Relations with China |publisher=South African Institute of International Affairs |date=September 2009 |url=https://saiia.org.za/wp-content/uploads/2009/09/Occasional-Paper-42.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mthembusalter2009elephants, author = {Mthembu-Salter, Gregory}, title = {{Elephants, Ants and Superpowers: Nigeria’s Relations with China}}, institution = {South African Institute of International Affairs}, year = {2009}, month = sep, url = {https://saiia.org.za/wp-content/uploads/2009/09/Occasional-Paper-42.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }