President Muhammadu Buhari Tuesday in Beijing called on the Nigerian and Chinese business communities to work harder to reduce the trade imbalance between both countries which is currently in China’s favour.
Speaking at the opening of a Nigeria-China Business/Investment Forum, President Buhari said that trade and economic relations between both countries must be mutually-beneficial and conducted with reciprocated respect and trust.
Buhari said although the Nigerian and Chinese business communities have recorded tremendous successes in bilateral trade, there is a large trade imbalance in favour of China as Chinese exports represent some 80 per cent of the total bilateral trade volumes.
“I would like to challenge the business communities in both countries to work together to reduce the trade imbalance,” Buhari said.
“You must also imbibe the spirit of having a mutually beneficial relationship in your business transactions. You must not see Nigeria as a consumer market alone, but as an investment destination where goods can be manufactured and consumed locally.”
The President said that his administration was committed to supporting investors that were ready to establish manufacturing and processing facilities in Nigeria.
“Last year during our meeting in New York, President Xi Jinping and I agreed to explore ways of practical cooperation in trade, investment, finance, human resources, agriculture and fishing.
“We also agreed to strengthen industrial capacity cooperation in the manufacture of cars, household appliances, construction materials, textiles, food processing, and others.
“This is in line with our government’s focus on import substitution through the creation of a diversified and inclusive economy that will meet most of our consumption needs.
“Already, our Federal Ministry of Industry, Trade and Investment is working on projects and programmes that will correct the wrongs of the past and enhance the ease of doing business in Nigeria.
“The ministry’s efforts will be complemented by investment tax incentive programmes, public sector reform initiatives as well as our zero tolerance stance on corruption.
“We also have an aggressive but realistic infrastructure development programme that forms the backbone of our economic diversification policy. We are embarking on major power, road, rail, seaport and airport development programmes that will enhance the competitiveness of manufacturing businesses in Nigeria.
“The future is bright and I am very confident that our policies will make Nigeria the investment destination of your choice,” President Buhari told the Chinese investors.
The President also assured them that his administration was doing everything possible to address concerns about security in Nigeria.
President Buhari said that to consolidate on recent successes against Boko Haram, close to 20 per cent of the 2016-budgetted expenditure has been allocated to the Ministries of Defence and Interior and as well as other security agencies.
“We are committed to protecting all lives and property within our borders. You can therefore be rest assured that your investments in Nigeria will be safe and secure,” he said.
Business and trade relations between Nigeria and China have grown astronomically in the last decade with bilateral trade volumes rising from USD2.8 billion in 2005 to USD14.9 billion in 2015.
Nigeria accounted for 8.3 per cent of the total trade volume between China and Africa and 42 per cent of the total trade volume between China and the Economic Community of West African States (ECOWAS) countries in 2015.
Nigeria To Include China’s Yuan In Foreign Reserves
Africa’s biggest economy Nigeria agreed Tuesday to include China’s yuan currency in its foreign reserves as Beijing seeks closer ties and greater political and economic heft on the resource-rich continent.
At a signing ceremony in Beijing, Presidents Xi Jinping and Muhammadu Buhari presided over the signing of six agreements.
They covered industrial activity, aviation and infrastructure investment cooperation between the world’s second largest economy and Africa’s most populous nation, which has struggled in the face of plunging oil prices and an $11 billion budget deficit this year.
The Nigerian central bank and the Industrial and Commercial Bank of China signed an agreement allowing transactions to be conducted in yuan and for the currency to be included in Nigeria’s foreign exchange reserves.
“If there is demand from Nigeria, China is ready to further conduct financial cooperation,” Lin Songtian, the foreign ministry’s director-general of African affairs, told reporters after the ceremony.
Nigeria is the first African country to use China’s currency in its reserves, he said.
China has poured investment into the continent as it has sought raw materials to fuel its booming economy. It became Africa’s largest trading partner in 2009.
But as its growth slowed, Chinese investment declined, falling more than 40 percent in the first half of 2015 due to reduced demand for commodities such as oil, iron ore and copper.
China is Nigeria’s second largest trading partner, Lin said, and its third largest source of investment.
No specific agreements concerning Nigeria’s budget woes were announced.
But Lin said Nigeria could propose projects to receive funding from a $60 billion package China announced at the Johannesburg summit of African leaders attended by Xi in December.
