China signs $600m deal to assist Nigeria set up textile industrial park
Chinese and Nigerian government are presently working hard to strengthen their business interactions. Nigeria has recorded many developments achieved with the assistance of the Chinese government. Recently, the government has signed a Memorandum of Understanding with Shandong Ruyi Technology Group of China for the establishment of a $600 million Textile Industrial Park in kano state.
However, the People’s Republic of China and the Federal Republic of Nigeria established diplomatic relations on February 10, 1971. Bilateral relations have since enjoyed smooth and steady development. Many Nigerians and Chinese have benefitted from this relationship. It has created jobs for better livelihood.
Reports confirmed that the planned multi-million dollar investment in Kano will be the biggest in Africa upon completion. Nigerians await this project’s reality. In response to this, Kano state Governor, Ganduje said he has put in place facilities for textile clusters across its 44 local government areas and urged the group to incorporate them into the Textile Industrial Park.
In addition, the people will also benefit from the construction. The proposed projects is expected to create more than 4, 000 jobs in the state. This will no doubt increase the standard of living of the residents in the area as many await the commencement of the project.
However, China and Nigeria have signed a number of agreements on trade, economic and technical cooperation, scientific and technological cooperation, as well as an agreement on investment protection. Record confirmed that the two countries set up a joint economic and trade commission. Also, the trade volume between the two countries in 2003 reached US$ 1.86 billion, representing a 59% growth. During the first four months of 2004, it grew further by 17.6% to US$ 609 million, with Nigeria’s export to China registering a growth of 330%. In a nutshell, both countries’ relationship has helped so far to increase the level of development.
Further more, China’s main exports to Nigeria are light industrial, mechanical and electrical products. China’s mainly import from Nigeria are petroleum, timber and cotton. From 2000 to 2011, there are approximately 40 Chinese official development finance projects identified in Nigeria through various media reports. These projects range from a $2.5 billion loan for Nigerian rail, power, or telecommunications projects in 2008, to an MoU for $1 billion construction of houses and water supply in Abuja in 2009 and several rail networks.
Some Nigerians believe that China’s relationship with Nigeria is an exploitation strategy while many believe their intervention and assistance have lifted the country from financial burdens.