So far, Nigeria’s borrowing from China has totaled 89.94%, or $3.67 billion.
China has been reported to be Nigeria’s largest bilateral lender due to collaborations with the country over the years.
According to a recent Debt Management Office report, approximately $3.12 billion in Chinese loans are project-tied and include 11 projects such as the Nigerian Railway Corporation’s modernization project, the Abuja Light Rail project, four Nigerian airport terminal expansion projects (Abuja, Kano, Lagos, and Port Harcourt), and others.
Meanwhile, data from the National Bureau of Statistics on foreign trade show that China accounts for the majority of imports into Nigeria.
According to the data, Nigeria’s imports from China increased by 183.91 percent from N530.98 billion in the first quarter of 2018 to N1.51 trillion in the first quarter of 2022.
According to this statistic, China ranked first among the top ten countries in the five quarters under consideration. While China accounts for the majority of the country’s imports, exports to China are negligible, according to available data.
In the first quarters of 2018, 2020, and 2022, the country was not among the top ten export destinations. Only in the first quarter of 2021 did China rank among the top ten export destinations, coming in third with N190.11 billion. Total imports from China were estimated to be N2.01 trillion in the same quarter.
Imports from China increased in all three quarters under consideration. It was N530.98 billion in Q1 2018, N979.29 billion in Q1 2019, and N1.11 trillion in Q1 2020.
It peaked at N2.01 trillion in Q1 2021 and fell to N1.51 trillion in Q1 2022.
Motorcycles, machines for the option of voice, electrical apparatus for line telephony or line telegraphy, mackerel, parts of machinery for working on rubber or plastics, crude salt, compressed salt used in animal feeding, antibiotics, herbicides, and other items are said to be imported from China.
Meanwhile, polyethylene, leather, sesamum seeds, cashew nuts, zinc ores and concentrates, lead ores and concentrates, and other products were exported to China during the period under review.
According to the NBS, imports to China in Q1 2022 account for 25.55 percent of total imports (N5.90tn).
It accounted for 29.34% of total imports in the first quarter of 2021. (N6.85tn). It was 26.28 percent of total imports (N4.22 trillion) in Q1 2020, 26.4 percent of total imports (N3.70 trillion) in Q1 2019, and 21.1 percent of total imports (N2.52 trillion) in Q1 2018.
According to the Chairman of the Manufacturers Association of Nigeria’s Export Group/Vice Chairman of Sapele Integrated Industries Limited. There is no requirement for nations to have equal imports and exports, Mr Ede Dafinone.
“There is no guarantee or requirement that any country import and export the same volume from each other,” he said.
“If Nigeria exports a certain amount of goods and services while importing another amount of goods and services from another country, the question is what the next difference with net import and export is.” There is no requirement as to which country is to blame. It makes no difference where the deficit is located as long as there is an overall surplus.”
