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Aidoghie Paulinus, Abuja
The Special Adviser to the President on Economic Matters (Office of the Vice President), Dr Adeyemi Dipeolu, has said deepening ties with China will help reduce the trade imbalance that exists between the two countries.
Dipeolu spoke in Abuja during the 2019 Belt and Road Initiative China-Nigeria Economic and Trade Cooperation Forum in Abuja.
He added that there is already substantial economic activity between both countries with China being Nigeria’s largest trading partner in 2017 as 25 percent of imports came from Chinana.
The presidential aide also said the value of the exports to Nigeria from China was about $12.15 billion as compared to imports from Nigeria of about $721 million.
He stated that the extent of Nigeria’s imports from China helped to explain the importance of the bilateral currency swap between both countries.
The swap which is for 15 billion Chinese Yuan for N720 billion over a three year period, Dipeolu further said, helped to facilitate trade between both countries, while reducing direct demand for third currencies.
He however said despite the notable economic ties, it is evident that there is still a lot to be done in terms of economic cooperation between Nigeria and China.
Dipeolu stated that to start with, Nigeria has to glean lessons from the Chinese development experience which shows that rapid development is possible in a big economy.
Dipeolu also said the national strategy for growing the economy and bringing about structural change is the Economic Recovery and Growth Plan, which he said, drew some insights from the Chinese experience.
The ERGP, he further said, was intended to bring about macroeconomic stability and diversification of the productive base of the economy.
He said as things stand, growth has improved within the last quarter of 2018 reaching 2.28 percent, its highest in over three years.
“It would be important going forward to develop ties between Nigeria and China that help to reduce the huge trade imbalance between both countries.
“A good starting point will be the importation of processed goods from Nigeria rather than raw materials. For example, China can purchase industrial starch derived from cassava grown in Nigeria for its factories just as it can import other goods and services from Nigeria, including feed and grain for its burgeoning animal husbandry sector.
“In the same vein, we would like to see more Chinese partnerships with Nigerian companies, including in the technology sector such that some of their requirements in terms of IT software and products can be sourced from here,” Dipeolu said.
China, Dipeolu also said, has supported Nigeria in the area of scholarships, especially to develop skills for use in the local economy including in agriculture.
He added that China has provided ICT training for up to 1000 female engineers in addition to other forms of support in cultural and educational exchanges.
