By Abiola Odutola

How the Chinese are taking over Nigeria’s economy
With an estimated approximated 203.42 million population and growing at over 2% per annum, Nigeria ranks the seventh-largest country in the world. The nation represents over 70% of the effective West African market, as Nigeria remains the most competitive destination for the establishment of medium and large manufacturing industries.

No wonder, China has since positioned itself to take advantage of this expansive market by unleashing its horde of investors and businessmen on the manufacturing sector. From textile to garment; household appliances, furniture, automobile; consumables and iron and steel as well as Financial Technology (FinTech) products, China has taken over, churning out tons of products for various segments of the market.

Today, the investments of Chinese companies worth over $20 billion and still counting.
In a recent interview, the President, China Chambers of Commerce in Nigeria, Ye Shuijin, said, “The 160 Chinese firms operating in the country had also employed over 200,000 Nigerians. I believe the Chinese investment in Nigeria now is about $20billion and we have employed over 200,000 Nigerians. Our workforce is 95% Nigerians.”
Details: Fintech
Fintech industry has been thriving for a few years, a development that attracted some Chinese firm to Nigeria. Some of them are OPay and PalmPay, just to mention a few.
For instance, when the Country Manager, Opay, Iniabasi Akpan, reeled out the statistics of the company and its subsidiaries at the KPMG’s Digital Summit on November 26, 2019, a lot of the participants were shocked that in less than five years, the company have achieved so much. He said, “We make $10million/day in transactions through our agents; N5billion+/day in transactions via Opay; 66% market volume of bank transfers, 10,000 riders with Oride, over 100,000 agents, and 125 million Monthly Active Users among others.”

That is not all. A few weeks ago, another Chinese firm, PalmPay launched its product in Lagos. The app is expected not only to reward its users for making payments but will give Nigeria’s excluded population access to secure and easy to use financial services.

At the event, General Manager, TECNO Mobile, Stephen Ha, told Nairametrics that the fintech company is backed by TECNO mobile, which was the lead investor in its $40 million seed round.
He said, “Tecno has helped expand access to smartphones among the Nigerian population. We are now looking to leverage this infrastructure to further improve people’s lives. We see a huge growth opportunity in mobile payments and financial services in the country and are looking forward to working together with the PalmPay team to help shape the future of payments in the nation.”

Manufacturing
Several Chinese companies are presently competing with their Nigerian counterparts in the real sector. For instance, Chinese-owned Western Metal Products Company Limited (WEMPCO), a multi-billion naira integrated steel mill, situated at Magboro, on Lagos-Ibadan Expressway, Ogun State, is the first of its kind in Africa. The sprawling steel-manufacturing plant boasts of a production capacity of 700,000 metric tonnes and production machinery of five-stand Tandem Mill. The factory, according to its Group Managing Director, Mr. Lewis Tung, will produce cold roll steel sheet of up to 0.15mm in thickness and coils of the same dimension and above. Other facilities in the plant include a 52-megawatt generator for power supply; a water treatment and recycling plant; a Ceramic tiles plant; an acid-generating plant; an air purifier and an annealing line.

Transportation
The Chinese have been visible in the transport sector, especially in rail transport. The $1.49 billion Lagos-Ibadan railway contract has been awarded to China Civil Engineering Construction Corporation (CCECC) and the Olokola Deepwater Port project awarded to the China Ocean Shipping Group. The CCECC is also handling the 27.5-kilometre Marina-Iddo-Okokomaiko, Lagos Light Rail project.
Since 1995, the company has won many of the contracts linked with Nigerian projects, edging out interested companies from the United States and European nations.

The CCECC is involved in multiple projects across the country in about 22 major infrastructural projects over $47 million, comprising the construction of airport terminals, roads and rails including inner-city light rails in Abuja and Lagos, all financed with concessional loans from the Exim Bank of China.

The state-owned Export-Import Bank of China (EXIM Bank) is also providing a $500 million concessionary loan for the 186-kilometre modernisation of the Abuja-Kaduna rail line, which includes the building of 36 bridges and nine fully-developed stations.

In the railway sub-sector, the CCECC was handed a $528 million contract in 1995 to rejuvenate the nation’s stretch of old rail track, supply 50 locomotives, wagons and coaches, install signal system and train Nigerian workers.

Power projects worth $10 billion underway
Chinese firms are involved in three key projects in Nigeria’s power sector estimated at $10 billion. One of the projects, the Mambilla hydroelectric power plant, is for the delivery of a 3,050Megawatt power plant in Taraba State.
The $5.8 billion contract was signed by the FG and the China Gezhouba Group Corporation, Sinohydro Corporation Limited and the CGCOC Group Company Limited in November 2017, about 40 years after the idea was conceived.
The China Exim Bank and other Chinese lenders will provide 85 per cent of the contract sum, while Nigeria pay the 15% balance.
Zungeru hydropower project is a 700MW hydroelectric facility also being developed with the Chinese assistance on the upper and middle reaches of Kaduna River in Niger State. Another power project with funding support from China is the $1 billion Gurara hydropower plant located in Kaduna. It has the capacity to generate 360MW electricity.

$600 million for four international airport terminals In aviation,
the Federal Government entered into a partnership with the Chinese government through the CCECC in 2013 to execute four international airport terminal projects.
The projects were the rehabilitation and construction of airport terminals in Nnamdi Azikiwe International Airport, Abuja, Port Harcourt International Airport, Mallam Aminu Kano International Airport, Kano and the Murtala Muhammed International Airport in Lagos.
The four projects are being funded with a $500 million loan from the Export-Import Bank of China and $100 million counterpart funding from the Federal Government, obtained as a loan from the Debt Management Office at an interest rate of 5.37%.

General Merchandise
Scores of Chinese businesses dominate the retail segment of the market in various parts of the country. Brands such as Viju Milk, Big Treat, Infinix, Guangzhou Automobile Group Company (GAC), Huawei, ZTE, Alcatel and others are household names Chinese restaurants, such Golden imperial Chinese Cuisine, Golden Gate, Lagos; Oasis Bakery all in Lagos and several other retail outlets businesses dot the landscape and they are enjoying tremendous patronage.
Despite penetrating several industries and recording countless achievements in Nigeria, the Chinese seem to be unrelenting as they are craving for more investments. There is no stopping the Chinese.
https://nairametrics.com/2019/11/28/how-the-chinese-are-taking-over-nigerias-economy/

If things keep up the way they r china will hv us by the balls like they did australia nd would start poking noses in our affairs although the u.s or the europeans r no better! At least china is investing in the country, naija only needs watchout more for its citizens under chinese employment nd also keep the contracts of strategic buildings of agencies nd ministries to trusted corprations plus tight national cyber space secuirity.
We can never trust these short bastards.

This is a good writeup. If we want our economy to grow then increases in FDI is inevitable. I dont really see this as a bad thing. My only gripe with foreigners investing and opening up companies here is the treatment of our workers and their working conditions.

However, what I am truly concerned about is our debt profile with China. Last week, I read that 13% of our foreign debt came from China. If we are going to continue taking our loans from their banks, then we need to have plans in place that allow for us to service our debt in a timely manner.

I guess west is being use as collateral Una never see something

This one pass Igbos are taking over your land

Since Nigerians cannot grab the opportunities to their advantage.

It is no longer Igbo carrying goods to sell, it is China taking over the economy.

Nothing lazy people will not say or blame.

u

hammer3:
It is no longer Igbo carrying goods to sell, it is China taking over the economy.

Nothing lazy people will not say or blame.

Some of their leaders don they ask questions about China mission

When they finish selling Nigeria , at least make dem give us change abi they will embezzle that one too
Yeye people

Not a bad development provided that government regulates appropriately and boldly in protection interests of Nigerian and Nigerians.

festacman:
Not a bad development provided that government regulates appropriately and boldly in protection interests of Nigerian and Nigerians.

Not for China

post=92818348:

Not for China

Why "not for China"?

God bless the Chinese.

lolz.
Where is that amala and gbegiri afonja that was wailing to thiefnuubu.
Let him come and wail ooo

festacman:


Why "not for China"?

Debt-trap diplomacy describes diplomacy based on debt carried out in the bilateral relations between countries with an often alleged negative intent. The creditor country intentionally extends excessive credit to a debtor country with the alleged intention of extracting economic or political concessions from the debtor country when it becomes unable to honor its debt. The conditions of the loans are often not made public, and the borrowed money commonly pays contractors from the creditor country. Although the term has been applied to the lending practices of many countries and the International Monetary Fund, it is currently most commonly associated with the People's Republic of China. Recent bilateral agreements as part of China's Belt and Road Initiative have furthered this association, especially as to commodity-backed loans to developing nations.

totit:
God bless the Chinese.

China is a major stakeholder in the economies of many African countries with a significant influence on many aspects of the continent's affairs. Recently, African countries have rapidly increased their borrowing from China, According to research conducted as part of the Jubilee Debt Campaign in October 2018, African countries owed China US$10 billion in 2010 increasing to over $30 billion by 2016.China's lending to African countries is part of a large-scale overseas investment boom forming part of its quest to secure access to raw materials and become an economic superpower.

post=92818678:


China is a major stakeholder in the economies of many African countries with a significant influence on many aspects of the continent's affairs. Recently, African countries have rapidly increased their borrowing from China, According to research conducted as part of the Jubilee Debt Campaign in October 2018, African countries owed China US$10 billion in 2010 increasing to over $30 billion by 2016.China's lending to African countries is part of a large-scale overseas investment boom forming part of its quest to secure access to raw materials and become an economic superpower.

They are investors after all.

Economic risks
The Belt and Road Initiative (BRI) is a multi-billion-dollar expansion project of China, to expand its power through lending to countries to spur their economic growth. BRI is also sometimes called the "Chinese Marshall Plan". The BRI project was launched in 2013 by paramount leader Xi Jinping to improve the infrastructure of countries in Europe, Africa, and Asia in exchange for global trade opportunities and economic advantage. The plan consists of spearheading and investing in 60 projects around the world. The initial expected costs of the BRI exceed $1tn, and actual costs are even higher. The risks involved in borrowing countries are unexpectedly high. In recent news, many countries in the BRI project have started rethinking the perils of the projects and the fact that most have repayment issues. Jonathan Hillman, director of the Reconnecting Asia Project at the Center for Strategic and International Studies in Washington believes that there is more to these projects than just mere financial strategy: "It's also a vehicle for China to write new rules, establish institutions that reflect Chinese interests, and reshape 'soft' infrastructure.
The negative effects of Chinese loans to African economies include fear of losing local companies to those Chinese with strong buying powers. Debt from China has also promoted illicit trade among China and African countries. Such imports are cheap because of China's cheap labor and are thus preferred for locally manufactured goods. Examples of cheap imports from China include clothes and electronics. Trade between African countries and China has also affected ties between African countries and other continents, especially Europe and North America. According to Brautiga, Chinese loans are prone to misuse and have promoted the levels of corruption and fight for power in African countries.
Over four-fifths of China's investments are spent on infrastructure projects in underdeveloped and developing countries. Forecasts of the International Monetary Fund (IMF) show that the economic growth rate of China will fall to around 6.2%, which is around 0.4% less than 2018's 6.6%. One reason for the decline is the increasing number of trade disputes between China and the US. Another is the sudden increase in debt in the past decade, which was used for infrastructure programs.

totit:


They are investors after all.

I hope you guys will not cry the way you guys are crying over Igbos in Lagos, moreover the report was written by your brother.

post=92818951:

I hope you guys will not cry the way you guys are crying over Igbos in Lagos, more the report was written by your brother.

Another investor coming

https://www.nairaland.com/6054665/nigeria-india-sign-mou-space

All these conspiracies don't hold water, if anybody is going to cry no one would be spared, remember? This is Nigeria, a country, a nation. Copy?

SW is a not a nation or country. Dooorh

Tik Tok is here.

post=92818951:

I hope you guys will not cry the way you guys are crying over Igbos in Lagos, more the report was written by your brother.

Guy, your lamentation ought to be directed at your own people/traders who are already crying that the Chinese are taking over their markets. Una wey dey always chestbeat about 'dominating' other people's markets are already crying like babies because y'all can't handle Chinese competition. See your life? Smh.

ODVanguard:


Guy, your lamentation ought to be directed at your own people/traders who are already crying that the Chinese are taking over their markets. Una wey dey always chestbeat about 'dominating' other people's markets are already crying like babies because y'all can't handle Chinese competition. See your life? Smh.

You are ignorant, Chinese taken over markets in the east

post=92822143:

You are ignorant Chinese taken over markets in the east

Hey, no be me talk am o. Na your own blodas for Onitsha and Aba talk am.

ODVanguard:


Hey, no be me talk am o. Na your own blodas for Onitsha and Aba talk am.

Come to Onitsha and show me how many Chinese own investment here, can you mention one industries in Onitsha own by Chinese I will mention 10 own by Chinese in Ogun

post=92822476:

Come to Onitsha and show me how many Chinese own investment here, can you mention one industries in Onitsha own by Chinese I will mention 10 own by Chinese in Ogun

Mechionu there. You are in denail. Since you are Anambra-based, shebi you can see the name of the the business owner in that Financial Times article, just get your lazy bum a$$ up and go look for Caltec at Onithsa, and ask him how he's getting his ass handed to him by the Chinese traders. After that you can also hit Aba and do your findings. Very soon shhit would hit the fan and una go begin treat them Chinese traders same way Ghanaians are currently treating igbo traders that are competing with them in their retail markets.

post=92822476:

Come to Onitsha and show me how many Chinese own investment here, can you mention one industries in Onitsha own by Chinese I will mention 10 own by Chinese in Ogun

What is wrong with the Chinese having factories in Ogun state? Did you think the Chinese just woke up one day and transformed itself into a manufacturing giant? Foreign investments have a lot to do with the growth of
China in terms of expanding the economy and technology transfer.
The onus is on the Nigerian government to provide a level playing field for both the foreign and the local investors.
Chasing away the Chinese or foreigners will only hurt you.

ODVanguard:


Mechionu there. You are in denail. Since you are Anambra-based, shebi you can see the name of the the business owner in that Financial Times article, just get your lazy bum a$$ up and go look for Caltec at Onithsa, and ask him how he's getting his ass handed to him by the Chinese traders. After that you can also hit Aba and do your findings. Very soon shhit would hit the fan and una go begin treat them Chinese traders same way Ghanaians are currently treating igbo traders that are competing with them in their retail markets.

Chinese people competing with Igbos on home territory?
Let's see how it goes.

post=92818951:

I hope you guys will not cry the way you guys are crying over Igbos in Lagos, moreover the report was written by your brother.

they are investors

ODVanguard:


Mechionu there. You are in denail. Since you are Anambra-based, shebi you can see the name of the the business owner in that Financial Times article, just get your lazy bum a$$ up and go look for Caltec at Onithsa, and ask him how he's getting his ass handed to him by the Chinese traders. After that you can also hit Aba and do your findings. Very soon shhit would hit the fan and una go begin treat them Chinese traders same way Ghanaians are currently treating igbo traders that are competing with them in their retail markets.

I asked you to name one industry in Anambra own by Chinese Chinese shareholdings are densely concentrated in Lagos State, where 52% of the companies are registered then Ogun. , especially Lagos's Chinatown, Other locations with concentrations of Chinese vendors include Old Dragon City , New Dragon City, and Jinmao Commercial Building.

totit:


Another investor coming

https://www.nairaland.com/6054665/nigeria-india-sign-mou-space

All these conspiracies don't hold water, if anybody is going to cry no one would be spared, remember? This is Nigeria, a country, a nation. Copy?

SW is a not a nation or country. Dooorh

e pain them because say we nor want their traders.. ghana deal with them small today

SLAP44:


Chinese people competing with Igbos on home territory?
Let's see how it goes.

Nna eh, e rugged o. Didn't know igbos can also biictch and whine about being displaced by other traders. Maybe now una go understand why Ghanaians are feeling threatened over what they see as unfair competition from igbo traders. Better tell your traders to suck it up and take their 'L' like grown a$$ men rather than biitch like a bunch of pu$$ies. Real talk.