FG laments $20b trade deficit with China, eyes net export in five years

Director-General and Global Liaison for the Nigeria-China Strategic Partnership, Joseph Tegbe, has expressed concern over the country’s trade deficit with China, which he said currently stands at $20 billion.

The government, however, said it was working to reverse this trend and become a net exporter to China within the next five years.

Tegbe stated this on Thursday during the opening ceremony of the China-Nigeria Infrastructure Cooperation Forum, China-Africa (Nigeria) 2024, and the 18th China Engineering and Technology Exhibition held in Abuja.

According to the DG, the trade volume between Nigeria and China was about $22 billion as of December 2023, with imports from China accounting for close to $20 billion.
According to him, in contrast, Brazil, which is China’s ninth-largest trading partner, exported $105 billion to China in 2023, while China’s exports to Brazil were valued at $59 billion.

Tegbe said: “As of today, China accounts for just 10 percent of the world’s arable land but has successfully solved the food problems of over 1.2 billion people, accounting for 15 percent of the world population, while Africa accounts for 60 percent of the world’s arable land, but we are still facing food challenges.

“This new dawn presents an opportunity to be part of this opportunity for food security resolution in Africa using advanced Chinese methods, techniques, and technology, and we could see this exhibition ground.

“Ladies and gentlemen, as of December 2023, trade volume between Nigeria and China was about $22 billion, with imports from China accounting for close to $20 billion. But on the other hand, when you look at Brazil and China, today Brazil ranks as China’s ninth-largest trading partner.

“And during the same period, Brazil’s export to China in 2023 was $105 billion, while China’s export to Brazil was just $59 billion, thus making Brazil a net exporter to China.

“This is our desired position as a nation for the next five years: to push our trade volume between China and Nigeria higher than what it is today, and for Nigeria to become a net exporter to China.”

He noted that the recent forum on China-Africa Cooperation, which culminated in his appointment by President Bola Tinubu, marked the much-needed elevation of the trade and economic relationship between Nigeria and China.

Disclosing that Nigeria has elevated its relationship with the East Asian country to a comprehensive strategic partnership, he said these partnerships are based on mutual trust, respect, shared ambition, and collaborative efforts.

“Under this new evolving partnership, we are more determined to achieve success together with our Chinese counterparts to draw strength from one another’s virtues and to confront challenges together as one united force,” he added.

Tegbe further observed that industrializing Nigeria could lead to industrializing 25 percent of Africa, adding that an economically sound and stable Nigeria signifies a prosperous quarter of Africa.

Chinese Ambassador to Nigeria, Yu Dunhai, described Nigeria as China’s largest engineering contact market, one of its largest trading partners, and an important investment destination in Africa.

He noted that the recent visit of President Tinubu to China attracted many important consensus and upgraded China-Nigeria relations to a comprehensive strategic partnership.

According to him, the move brought the two countries to a new historical starting point and opened up a new chapter for practical cooperation between them.

He said the exhibition was an important event organized to implement the outcomes of the Beijing summit and the consensus reached between the two heads of state.

The envoy said: “I am pleased to see that this exhibition brings together men, outstanding entrepreneurs, and innovations in a wide range of fields, including engineering, contracting, advanced manufacturing, biotechnology, energy conservation, environmental protection, and green energy.

“Through the exhibition and exchanges, we believe it can play an important role in further promoting the process of industrialization and agricultural modernization in Nigeria, and also facilitate in-depth cooperation between our two countries in more fields.”

He noted that Chinese engineering technology has made significant contributions worldwide, including in Nigeria, adding that a number of large-scale projects have been successfully completed by Chinese companies over the past 40 years.

“This initiative has made a positive impact on Nigeria’s economic and social development. I believe that this exhibition will give the Nigerian people an opportunity to directly understand China’s latest achievements in engineering, technology, and other fields, and further strengthen the foundation for more cooperation,” Dunhai added.

Speaking, Minister of Transportation, Senator Said Alkali, described the exhibition as timely, given the priority accorded to infrastructural development by President Tinubu as a major component of the Renewed Hope Agenda.

While reaffirming the commitment of the federal government to collaborate with China to enhance transportation infrastructure, the minister said the partnership aims to ensure that transport systems are accessible, affordable, efficient, smart, and dynamic while adhering to laws that promote environmental sustainability and safety.