CHINA’S INCREASING INTEREST IN AFRICA: IMPLICATIONS FOR NIGERIA’S NATIONAL DEVELOPMENT

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CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF STUDY

        The most widely accepted approach to the study of why nations relate with one another is the theory of realism (T. Dunne 2009:56). Realism as a theory of international relation is based on the idea that nations only relate with one another for self interest (national interest) and the desire for one nation to dominate the other (hegemony).2 However, another school of thought  sees the essence of international relations in another perspective. This school of thought postulate the desire of nations to relate on the basis of common interest and the need for common development.3 This school of thought is based on the theory of liberalism and idealism.4 This theory stated   there is the need for nations to relate with one another and this kind of relationship is meant to foster national development.5

Additionally, it is expedient to note that nations relate generally for different reasons. There can be diplomatic relations based on politics, economic, social, and military reasons.6  The  more economic viable nations  depend heavily on the  less economic viable nations to suceed.7 It is however sad to note that most developing countries of the world especially countries of Africa are  consuming nations. Although most natural resources of the world lies within this territory, the lack of a technological base and other deplorable state of infrastructure has bedeviled their industrial capacity for manufacturing.8 They  depend highly on importations of products manufactured from more industrialized and developed nations. Likewise, the developed nations of the world depend on the less developed nations for natural resources for their industries. All pointed towards the need for interdependence for attainment of national development. According to the Karen Mingst, national development encompasses the whole structure of nation’s developmental capacity which has economic development as its fulcrum.9

     The most powerful nations that control the world’s military and economic strength are called the great powers. The great powers include the United States, Great Britain, Russia, France,  Germany, Japan and China. These countries are  most influential in the world’s politics and economics of international relations.10 China, with a population of 1.3 billion people as at 2007, is the most populous country in the world.11 It has risen to become second largest economy in the world.  She is a rising power and a permanent member of the United Nations Security Council, with far-reaching ambitions.  In contrast to China, Africa is a continent of 58 countries which are among the world smallest and poorest, and China has relations with many of them.12  This relationship is due to the interest that China has in the countries.

     The quest for political and economic dominance among states occupies the international political system.  For the past decade, the Chinese economy has been expanding with enormous energy resources, hence China has now set its sight on Africa.13  China’s interest in Africa is not new.  In the 1960s and 1970s, Beijing’s interest centered on building ideological solidarity with other underdeveloped nations to advance Chinese-style Communism and to repel western Imperialism.  Following the cold war, Chinese interests evolved into more pragmatic pursuit such as trade, investment, and energy.14

     China’s increasing domestics energy demand, combined with declining domestic petroleum and insufficient coal output, has spurred her to pursue stable overseas energy sources. In 2007, China’s net oil imports amounted to 3.2 million barrels per day or 48% of its total consumption. In  2009, its daily import requirement   reached 10.7 million barrels which was 75% of consumption.15  The oil and natural gas production in Asia is not growing fast enough to meet Chinese demand, and a large portion of Middle East oil and gas production is normally allocated to the US and European markets.16  therefore, China must look elsewhere for a new energy source.

     Currently an estimated 25% of China’s total oil requirements  come from Africa and China has placed high priority on maintaining strong ties with her African energy suppliers through investment, high-level visits and strict policy of non-interference in internal affairs of their suppliers.In January 2006, Foreign Minister Li Zhaoxing toured six African nations which are Cape Verde, Senegal, Mali, Liberia, Libya and Nigeria.  The visit was to  strengthening China’s interest in Africa.  After the tour, China’s African Policy was released as an official Chinese government paper aimed at promoting economic and political cooperation as well as joint energy development without interfering in each other’s internal affairs.  Non interference in the internal affairs of other countries is a good posture.

    Consequently, the era of sole dependency on western countries like the USA, Britain, France and Germany by African countries is fast gradually coming to an end. Year after year China’s bilateral and multilateral cooperation with African countries is increasing. China today is the Africa’s second-biggest trading partner after the US. From Nigeria’s railway and oil exploration contracts to Ghana’s billion dollars transport contracts and Angola’s oil deals, China has gradually taken over most economic trade centres of Africa. In Kenya, China is leading as expected in foreign investments with lucrative infrastructures, telecoms and defence contracts. Nearly all areas of the Kenyan economy have  attracted considerable interest from the Chinese investors. As reported, China has taken control of major infrastructure projects with an estimated 60 percent market share. Road construction, airports, water systems, power generation, housing and hospitals are all under the Chinese.19

    Nigeria is one of China’s biggest markets.  In July 2007, the Chinese government signed an 800 million dollars crude oil sales agreement with Nigeria in the following 5 years, china was expected to purchase 30,000 barrels of crude oil daily from Nigeria.  China won licenses to operate four oil blocs in Nigeria as part of incentives to build a hydro power station.  China also launched Nigeria’s first space satellite.19 The satellite launch has further strengthen china’s relationship with Nigeria. The impact of Chinese trade cooperation in Nigeria has  been outstanding. The oil sector, whose exploration over the years has been dominated by the western world, is gradually shifting towards the Chinese market. This was evident in 2009 when Nigeria’s NNPC signed an agreement with Sinopec a Chinese company to develop Oil Mining Lease (OML) 64 and 66, located in the waters of the Niger Delta.20 Another area of the influence of Chinese in the Nigerian economy is the power sector and the transport sector which have been the bane of Nigeria’s economic development.

CHINA’S INCREASING INTEREST IN AFRICA: IMPLICATIONS FOR NIGERIA’S NATIONAL DEVELOPMENT