Chinese Foreign Direct Investment Aninrfastructural Develpment In Nigeria (2005-2015)

A lot of work has been done on foreign direct investment but this work has becomenecessary to look into the issue of Chinese foreign direct investment in Nigeria. We argue in thiswork that China is very important to Nigeria and vice Versa in this ever growing economicintegration that is continually making the world a global village. This Thesis looks at the efficacyof Chinese foreign direct investment and the advantages or otherwise of it. The intention is toshow if in the period2005-2015, Chinese foreign direct investment has made any impact on theNigerian Economy.It is important to note also that for the Nigerian economy to take off to the desired point, itsinfrastructure must be up and running. However, this is not exactly the case. This in my opinion,has been identified by the Nigerian government and that is why all contracts and loans by theoutgoing administration are geared towards infrastructural development. What makes itinteresting is the fact that Chinese companies are not only bidding and winning these contractsbut are also providing loans to construct them at very reasonable rates, with longer repaymentperiods.One of the fundamental issues raised by this thesis is why the Chinese firms find Nigeria afertile ground for foreign direct investment despite the huge shortage of infrastructure. Theargument made is that for any country to attract foreign direct investment, there are certaindeterminants that must be present within that economy, one of which is the preponderance ofinfrastructure. This is clearly not the case in the Sino-Nigerian relations and this thesis tries tofind out why.As an outcome, this Thesis argues that in the short period within which Chinese firms havebeen involved in infrastructural development in Nigeria, we have witnessed a sharp increase inaspects of our already decaying infrastructure. Therefore, this thesis posits that in spite of thelittle challenges that still exists, China is extremely good for Nigeria if we would do our part interms of creating the necessary atmosphere for businesses to thrive and for technology to bepassed to local entrepreneurs.The issue of Local content as advocated by the Goodluck administration must be vigorouslypursued by the Nigerian government as this will further enhance technology transfer. That iswhat all developed nations are currently doing especially in China where you must have local content to be able to start any business. If this is enforced, then this thesis predicts that within thenext ten years, Nigerian industrial capacity would have been strong enough to start production,not just for local consumption but for export saving the nation foreign exchange capital flight.By way of conclusion, this work recommends a number of ways that both China and Nigeriacan improve on this great relationship with both countries yielding a truly win-win situation.