There is a Chinese popular saying “if you want to get rich, first build a road”. However, for Nigeria, a binding constraint on her development is the country crippling infrastructure deficit. The Nigerian economy has suffered enormous infrastructure deficits since her independence in 1960, thereby limiting economic growth potential of the nation considerably. Infrastructure is indispensable to attain the key development target for vision 2020 in Nigeria, such as urbanization, industrialization, export promotion, equitable income distribution, and sustainable economic development. Nigeria infrastructure development is facing an extensive overhaul, especially the transport sector. Considering the indicators, transport sector in Nigeria is currently performing under its potential contributing just 1.41 percentage to Nigeria GDP as stated by the Central Bank of Nigeria. For the next five years, Nigeria is reported to require US$166 billion to provide energy and infrastructure for its growing inhabitant. The country has long suffered as a result of inadequate investment in infrastructure, constraining the movement of people, goods, and investment. Late developing nations can profit from previous development experience as long as they choose the right model. However, the association between infrastructure and economic growth is still regularly discussed.

It is in this context of weak infrastructure provision in the region, a severe skill and monetary shortage and a complex geopolitical and political web of decision-making that the Chinese engagement with Nigeria’s infrastructure is needed most. The Chinese have a vital role to play in both financing and in offering the institutional and human capacities needed to build, operate and maintain Nigeria’s infrastructural sectors, with respect to both social and economic infrastructure. As we know, China is by far the largest actor among the non-OECD financier and its engagement is set to grow significantly in the coming years. Chinese financing is likely to make a considerable contribution toward Nigeria’s needs, especially in the sectors where the gap is largest. Chinese investment towards Nigeria infrastructure is part of the capital accumulation required for her economic expansion; which can have a significant impact on the socioeconomic measures of the people’s welfare.

For more than four decades, the Chinese had been contributing towards Nigeria infrastructure development from rails and road to seaports and airports. Currently, China Civil and Engineering Construction Company (CCECC) was awarded a US$ 1.53 billion contract to construct the 312km route between Lagos and Ibadan, which is set to be delivered by 2018. Other packages include the 300km line between Lagos and Benin City, the 615km high-speed Lagos-Abuja line and the 1675 km Port Harcourt-Maiduguri line. Nigeria aviation sector is backed by a 500 million loan from the Chinese EXIM bank to construct new terminals at all four Nigerian’s international airport and upgrades to 22 of its federal airports. The construction of these Nigerian airports is expected to increase the airport’s capacity by 1 million passengers per year, and will significantly ease passenger flow at times of peak traffic. Several Memoranda of Understanding (MoU) and ultimate agreement for several infrastructure development projects have been signed. They include: (i) aviation cooperation between Ministry of Transportation and the Ministry of Commerce of the People’s Republic of China; (ii) Nigeria and China on scientific and technological cooperation; (iii) North-South Power Company Limited and Sino hydro corporation limited (SCL), signed an agreement valued at US$478 million dollars for the construction of a 300MW solar power in Niger State;(iv) Granite and Marble Nigeria limited and Shanghai Shibang signed an agreement worth US$55 million dollars for the construction and equipping of a granite mining plant; (v) Infrastructure Bank of China and SCL signed an agreement for the construction of a greenfield expressway for Abuja-Ibadan-Lagos worth US$1 billion dollars. This physical infrastructure development has emanated in various dimensions, China has already invested a total amount of US$22 billion dollars’ projects and another US$23 billion dollars’ projects are on-going.

Also, one of the mechanisms to address the infrastructure financing gap has been a US$6 billion loan commitment from China to fund infrastructure projects in Nigeria. The loan commitment coincided with a currency swap deal agreement between the Industrial Commercial Bank of China LTD (ICBC), which is China and the world’s largest bank, and the Central Bank of Nigeria (CBN). The swap deal should facilitate the settlement of Nigeria-China trade by removing the dollar from transactions and trading instead in yuan, whilst in tandem bolstering imports from China, whose export represents some 80 percent of the total bilateral trade volume. It is anticipated that this, in turn, should lessen the demand for dollars on the Central Bank of Nigeria.

China can offer a significant development opportunity for Nigeria as well as playing a great role in Nigeria’s development by alleviating infrastructure bottlenecks and expanding trade. However, for Nigeria to thrive in a globalized world, the country will require not only addressing the infrastructure gap but also improving business regulations and customs procedures, as well as provide broader reforms to strengthen the rule of law. It goes without saying that collaboration between China and Nigeria in relation to infrastructure project can work, and over the coming years I hope China can continue to play a significant role in facilitating to financial close projects between China and Nigeria that can bridge the infrastructure gap.