CHINA: Chase for new economic frontiers in Nigeria and a troubling image baggage.

China’s intimidating global stature has long been established. It commands the second largest economy in the world and remains a financial power house.

On July 16, 2017, one of the federating units in Nigeria, Oyo State, gleefully announced that it had secured the commitment of $5 billion from China in the development of a newly established Free Trade Zone(FTZ). Wrapped in general terms, the transaction was huge by local standards.

Earlier in May 2015, the same state had signed a Memorandum of Understanding (MoU) with a Chinese firm, CCECC for the construction of a light rail transport system covering about 24 kilometres within Ibadan, the state capital.

Governor Abiola Ajimobi took credit for the feats.

The excitement was palpable, and understandably so. For several years, Oyo State, like others within the Nigeria, has had to live with rapidly shrinking revenue as a result of over reliance on the central government which doles out monthly ration of resources to its components. Left in a rather parlous state, the Ajimobi-led administration had been visited by rising unemployment, decaying infrastructure, unpaid wage bills and general disconnect in economic management.

In signing the rail project, Ajimobi said, “We believe that in our quest to modernize Oyo State, particularly in the area of transportation system that will consequently lead to the economic development of the state, having a light rail system is a sine qua non.”

Perhaps, mindful of long-held pitiful perceptions of China’s adventure into virgin territories, the Mr. Li Binj of CCECC allayed fears that Chinese technology was inferior and ruinous to local communities. “We did not just come to the state with cutting-edge technology, but also with the desire to transfer such to the local people who would be engaged for the project,” he said.

China’s foray into Oyo is only but the most recent of its increasing foothold in the country. Its visible presence spans well over 40 years and these are captured by the dots of infrastructure which spread across various regions and sectors of the economy.

From Lagos, Nigeria’s best known commercial hub, to Kaduna which is largely considered the seat of political power in Northern Nigeria, and of course, Abuja, the nation’s Federal Capital Territory (FCT), China’s reign as the country’s dominant infrastructure development partner appears no longer in dispute.

“China has already invested or financed a total number of $22billion projects here in Nigeria, another $23billion projects are on-going. In addition, we are also following up another over $40billion of investments, which are in the pipeline,” Chinese Foreign Affairs Minister, Wang Yi was quoted to have said in January 2017.

In Lagos, an outstanding project which might become a show-piece for China’s presence in Nigeria is the light rail contract, designed to be delivered in phases. Already, the snaky concrete pillars are beginning to reshape the feel of the metropolis. Estimated at over N70 billion, the 27km rail line has a targeted December 2017 deadline for completion.

The Chinese involvement in Kaduna is said to be the construction of a refinery in the state which will use crude oil from Niger Republic via a 400-kilometre pipeline from Niger to Kaduna. Governor Nasir el-Rufai, who revealed that the proposed refinery will have a production capacity of 50,000 barrels per day, named representatives of the Kaduna Refinery Consortium and the China Machinery Engineering Corporation, CMEC, as signatories to the agreement which took place in May 2017 in China.

Interestingly, the scenarios in Oyo, Kaduna and Lagos had played out earlier at the inception of the Muhammadu Buhari-led presidency which overwhelmed the then Peoples Democratic Party (PDP) at the 2015 polls.

Buffeted by what the new administration termed irresponsible governance and shameless looting of the economy by the previous PDP leadership, Buhari had set his eyes on China to help check the quick descent into economic chaos dominated largely by rising inflation and a fast depreciating national currency.

A flurry of international engagements via diplomatic shuttles yielded what is now largely regarded as authentic promissory notes. Confirming Nigeria’s seeming uncontrolled romance with China, the Minister of Transportation, Rotimi Amaechi, hinted that the Federal Government and China Civil Engineering Construction Corporation (CCECC) had signed a Memorandum of Understanding (MoU) for the execution of the $11.12 billion Lagos-Calabar railway project.

Noteworthy is the fact that the construction giant, CCECC, led by Cao Baogang, featured prominently as executioners of the project. Other Federal Government projects in which CCECC had been named include the $1.79 billion for work on the second phase of Abuja Mass Transit Railway and construction of Segment II of the Lagos-Ibadan Rail Project worth $1.5 billion.

China’s sudden rise to fame within Nigeria’s business circles has not been without considerable baggage. CCECC is seen by ardent critics as a veiled vehicle for China’s imperialistic moves. It’s been established that the Export-Import Bank of China, a state-owned institution, is usually the financier of the projects.

The ubiquitous presence of CCECC, watchers of Sino-Nigeria relations claim, is clearly indicative of the manipulative motives of the home government in China. The perceived anomaly, it is argued, has helped to deepen Nigeria’s fragile hold on the apron strings of China. Perhaps, even more damaging are allegations that the unequal partnership has driven the entry of a greater number Chinese corporations and heightened the influx of ultra-cheap Chinese goods in local markets.

The anti-labour practices adopted by big Chinese corporations doing business in Nigeria have also come up for scrutiny. Once, it was reported that staff of CCECC involved in a construction project in Majidun, Ikorodu area of Lagos, had been up in arms due to unsettled wage bills, inhuman treatment and poor hygiene conditions.These allegations, very often denied, remain a festering sore capable of throwing spanner in the works.

Could the desperation to assuage local feelings be the reason CCECC and other Chinese corporations are investing in capacity building initiatives? May be, yes. The company recently commissioned its railway technology training centre in Abuja with plenty fanfare. It said that the centre is mainly set up to train local artisans and technicians on how to manage the Nigerian construction industry.

However, doubts persist and this is largely trust-related because of years of perceived tampering and poor adherence to global standards.

“We will execute this project with quality materials and with high speed,” Baogang said in reference to the Lagos-Calabar project.

Whether this, and many others, will be a promise kept remains a matter of conjecture. At the moment, China appears to be on a roller-coaster ride in Nigeria.

 

 

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