The Nation Newspaper

Tag: chinese

  • Chinese model

    Chinese model

    •We can learn a thing or two about how the Asian giant convicted a general

    Stories from other climes about high profile corruption cases should be making those who think corruption is a Nigerian and/or that it is a problem of Nigeria’s elite, military or political class alone, rethink their stance. The latest of such report is the sentencing of 74-year-old Guo Boxiong, a retired general and vice chairman of China’s Central Military Commission to life imprisonment for corruption.

    Gen Boxiong was accused of using his position to help others get promotion after taking huge bribes from them, either directly or indirectly. Indeed, his own case is only one in the series of such high-profile corruption cases involving Chinese military officers. Gen Xu Caihou, Boxiong’s fellow vice chairman in the military commission who was also accused of corruption in 2014 died of bladder cancer before his trial.

    Sensing that corruption may kill China if China did not kill it, China’s President Xi Jinping launched a massive anti-graft drive which has seen several serving and retired generals detained or convicted on corruption charges. Jinping wants to recreate the country’s People’s Liberation Army into a modern force more capable of projecting power abroad and this cannot be achieved with the massive corruption in the military. By the time a decision is taken on Boxiong’s son, Gen. Guo Zhenggang, who was detained by Chinese military authorities over alleged corruption, alongside his wife, we would know whether corruption flows in the family.

    Until then, and irrespective of the outcome of the investigation, Nigeria has a lot of lessons to learn from China in handling high-profile corruption matters, at least given the little that we know of Gen Boxiong’s case. China recognised corruption as its major problem and decided to confront it headlong. We have not heard stories of people questioning the arraignment or conviction of the general because he is not the only corrupt general in China as our own elite would argue here; instead of arguing for the innocence or guilt of the suspect. No one is alleging victimisation. Neither is anyone playing up his age as basis for clemency. If someone committed a crime without considering his age, then the law should also be no respecter of age in convicting that person, if found guilty.

    Despite the fact that Boxiong’s trial was held behind closed doors due to state secrets involved, he did not contest the allegations or its outcome. He couldn’t have, though, because in China, everyone knows that the wages of corruption is either death or imprisonment. Here, top lawyers would be sniffing for technicalities when all else had failed, to secure the release of their high profile thieves. Also, we did not hear of his supporters organising solidarity rallies for his release.

    This was a man who once was one of the top two officials in China’s military before his retirement about three years ago; a vice chairman of the powerful Central Military Commission under former President Hu Jintao from 2002 to 2012. Yet, he was stripped of his rank and all his personal assets confiscated. Indeed, he was expelled from the Communist Party over bribe allegations about a year ago, ahead of his conviction and sentencing. He did not waste the time of the court by denying what was obvious; rather, he reportedly “made a full confession to the accusations of corruption against him, expressing his guilt and regret.”

    In spite of all these, the good news is that no one has raised any of these as reason why Gen Boxiong should not have his deserved comeuppance. His conviction has shown that no one is indispensable when corruption is the issue. Gen Boxiong had been anything a military general could become in China; yet, it did not stop the law from taking its course when he was found on the wrong side of it. This is a take-away for President Muhammadu Buhari as he addresses the problem of corruption in the Nigerian Armed Forces. There should be no sacred cows.

    Until Nigeria begins to deal decisively with corruption cases involving especially politically exposed persons and other big thieves, we would be dancing in circles instead of dealing the death knell on the cankerworm.

     

  • I’m glad Nigerians are getting married to Chinese —Lagos China Town founder Lu Lu Jackson

    CHINESE citizen, Lu Lu, better known as Jackson, first came to Nigeria in 1986 on the invitation of a prominent Nigerian businessman and politician. Thirty years on, Jackson has literally adopted Nigeria as his country.

    Apart from being the head of the Chinese community in Lagos, his effort to recreate China in Nigeria with the founding of the popular China Town market in Lagos has gone a long way to solidify the relationship between Nigeria and China.

    Revealing how well he considers Nigeria his home, Jackson, a grandfather, jokingly said he is treated more like a visitor whenever he visits China. “Whenever I go to China, my people there say welcome. That makes me look like a visitor,” he said with wild laughter.

    He has also fallen in love with Nigerian foods. “Before I founded China Town, I ate any Nigerian food I saw. I love Nigerian foods and I eat them. But my favourite is yam and stew. I really love the taste,” Jackson said.

    His coming to Nigeria was not without some challenges, but he was not discouraged by them, particularly because he arrived in the country fully prepared for whatever challenge he might encounter.

    “Of course, I knew that there would be challenges to come and live in Nigeria. But I was very prepared for the challenges, and that really helped me to cope when I finally arrived here.

    “I prepared myself very well before coming to Nigeria. I was mentally prepared for whatever I might encounter. This is what most people do not do. For me, I was mentally prepared. I cannot deny that there have been challenges. But the truth is that I prepared myself very well.”

    The Chinese community leader admits that he has enjoyed his stay in Nigeria.

    “I have enjoyed my stay in Nigeria because I love the people. I love Nigerians. Believe me, Nigerians love and respect foreigners, and they are very trustworthy.”

    Asked about his impression of Nigerian women, Jackson said they are beautiful, adding that he is happy that there have been several marriages between Chinese and Nigerians.

    “Today, we have many Chinese marrying Nigerians. That is a good sign that both countries are integrating. Though they may not be many, the truth is that we have people from both countries marrying,” he said.

    Part of those things that helped him, he said, was the location of his native home in China, which he said is in several ways like Lagos.

    “My home town in China is located very close to the sea. So, I am very much at home in Lagos because it is just like my native place in China,” he said.

    Impressed with the business climate and opportunities that abound in Nigeria, Jackson went back to China in 2009 and invited about 1,000 business organisations to a roundtable where business opportunities available to both Chinese and Nigerian investors were discussed.

    Jackson said it was his dream to deepen the relationship between both countries and expand the business opportunities that led to the creation of the popular China Town market.

    “From the Chinese side, China Town is like a service centre. But from the Nigerian perspective, it is like a market. You know that Nigerians have shops here and markets don’t die. There will always be buying and selling in a market. Therefore, it is a platform not only for the Chinese but also for Nigerians.”

    Speaking on his effort to strengthen the bilateral relationship between Nigeria and China, Jackson said: “We have to understand that the relationship between both countries is not only on friend to friend level but also on government to government level.

    “We also need to understand that the Chinese policy is about mutual respect for both parties. But the service centre forms a good platform for the relationship.”

    He said most Chinese companies in the country respect and comply with Nigerian laws. He said they are also observing their corporate social responsibility by contributing to the development of their areas of operation.

    “Chinese companies are law-abiding. They respect the laws of Nigeria. They make money from Nigeria and are happy.

    “It is the same with Nigerians doing business in China. The companies also try to contribute to the development of the area of their operations.”

    While Jackson would love to acknowledge his contribution to the success of the relationship between China and Nigeria, he said the bulk of the credit should go to a former Nigerian ambassador to China, Ambassador Victor Nwozichi Chibundu.

    He said: “All the associations that are registered with the Chinese embassy are focused on promoting the friend to friend relationship. In that respect, we know Ambassador Chibundu very well. Because of his passion for these associations, we get together from time to time. We also meet at embassy functions.”

    He noted that the ambassador has brought several Chinese companies to Nigeria. “Most of those companies are doing very well,” he said.

    Regrettably, Ambassador Chibundu is no more. But the Chinese community is not mourning, as it gears up to celebrate the life and times of a man they believe contributed a great deal to cementing the relationship between Nigeria and China.

    Speaking on the plan of the Chinese community to honour the late ambassador, Jackson said arrangements had been concluded to hold a get-together in his honour.

    He said: “The Chinese community in Lagos will come together to honour the late Ambassador Chibundu for his contributions to the strengthening of the relationship between China and Nigeria.

    “It is in commemoration of his life and times. We would have Chinese people who knew him speak about his life in China. We would talk about the benefits of the relationship.”

    He said the contribution of the late ambassador cannot be quantified, saying the benefits of his efforts in making sure that both countries trust and do business with each other would last forever.

    “You cannot say his contribution was one, two or three. The books he wrote about the relationship between both countries are priceless.

    “During his tenure as the ambassador, he introduced quite a number of Chinese investors to Nigeria. So, we will continue to enjoy his contributions to the relationship for a long time.”

    The decision to honour the late Ambassador Chibundu, Jackson said, is deeply rooted in time-tested Chinese culture of never forgetting a good deed done to them by anybody.

    “The Chinese do not forget any good thing you do to them, even if it is one thing,” he said. “That is why we want to honour the late Ambassador Chibundu.

    “We know that we cannot appreciate all the good things he did enough, but we want to do it in our own little way.

    “On that day, you will see the Chinese way of honouring a man who has done good things.”

    Ambassador Chibundu served in the Nigerian Foreign Service from 1961-1990, during which he rose by dint of hard work and dedication to the ranks of Ambassador Extraordinary and Plenipotentiary, and Director of several Departments responsible for such strategic areas as Arab affairs (now Middle East), East, Central and Southern Africa (during intense patriotic liberation struggles) and cultural affairs, in the Ministry of External Affairs.

    Prior to these assignments, he was the Special Assistant to the first Minister of External Affairs and Commonwealth Relations, the late Hon.(Dr) Jaja A.Wachukwu, and the late Ambassador John N.Ukegbu, Permanent Secretary and Administrative Head of the Nigerian Foreign Service.

    He also established and was formerly accredited as Charge d’ Affairs of the Embassy in Teheran, during the reign of his imperial majesty Mohammed Reza Palavi Aryamher, Shahanshah of Iran. Thereafter, he was appointed Minister/Deputy Head of Mission, Embassy of Nigeria, Beijing, China with concurrent accreditation to the Democratic People’s Republic of Korea from 1981-1984; Ambassador to Angola, with concurrent accreditation to Sao Tome and Principe 1984-1987; and leader of Nigeria Christian Pilgrimage to Israel in 1988.

  • Chinese UN peacekeeper killed in escalating fighting in South Sudan

    Chinese UN peacekeeper killed in escalating fighting in South Sudan

    Casualties among UN peacekeepers including the death of a Chinese blue helmet occurred during the renewed fighting in South Sudan’s capital Juba on Sunday, a spokeswoman with the UN Mission in South Sudan (UNMISS) has confirmed.

    “The casualties involved one Chinese and Rwandese,” deputy spokesperson Shantel Persaud told Xinhua on Monday without disclosing the name of the victim.

    The Chinese blue helmet was killed on duty at the UNMISS Jebel base, while several other Rwandese peacekeepers were critically injured at the Tomping base near the airport, she said.

    She described the fighting on Sunday as “intensive,” and condemned the fresh violence in Juba that she said caused panic among civilians.
    The UNMISS reported some 1,000 internally displaced people fled from one of the UNMISS protection of civilians sites to its compounds in Jebel, which suffered small arms and heavy weapons fire.

    The UNMISS has run six such sites in various parts of Juba in the past two years, accommodating nearly 170,000 people seeking safety.
    The UN Security Council on Sunday issued a statement that “condemned in the strongest terms the escalation of fighting in Juba, South Sudan that started on July 7.”

    With sympathies and condolences to the families of Chinese and Rwandan peacekeepers killed or injured in the attacks, it expressed “particular shock and outrage” at the attacks on UN compounds and protection of civilians sites in Juba.

    Report says a UN peacekeeper from China was killed and six others were injured when the armoured vehicle carrying them was hit by a shell during a mission in Juba, capital of South Sudan, according to China’s Ministry of National Defence.

    The incident happened on Sunday evening local time as fighting between government and anti-government forces continued in Juba.

    South Sudan’s Health Ministry has confirmed 271 people were killed in Friday’s clashes between rival army factions outside the presidential palace in the capital Juba and there is renewed heavy fighting on Sunday.

    In a statement, the Health Ministry said those killed included 32 civilians, 5 police officers, 44 government troops and 190 soldiers of the Sudan People’s Liberation Movement-In Opposition (SPLM-IO) led by Vice President Riek Machar.

  • Winners emerge in Chinese language contest

    Winners have emerged in the Chinese Bridge Proficiency Competition organised by Confucius Institute, a Chinese language body at the University of Lagos (UNILAG). The contest was sponsored by a mobile phone giant, Huawei.

    Gbemisola Fadeyibi came tops, clinching the gold medal and N500,000 cash. Daniel Ehiagwina got the silver medal.

    Sixteen students from 16 schools across the country participated in the contest, which ended last Friday.

    Gbemisola also received certificate of participation and a letter to represent Nigeria at the international edition of the competition in China.

    Daniel was also given a certificate of participation, a Huawei smart phone, and a return ticket to be part of the international audience at the world challenge.

    Speaking on the relevance of Chinese language, Dr Anthony Okeregbe, a senior lecturer at the Department of Philosophy and Deputy Director of Confucius Institute, said the Federal Government had initially designed the competition for public schools, but added that the contest was extended to participants from both public and private schools to achieve the body’s objective.

    He said the massive turnout at the event was a proof that interest in Chinese language among students was growing, adding that the competition was being held in primary, secondary and tertiary schools.

    Okeregbe said: “This will encourage every youth to take opportunity in learning Chinese, because China is where the world is heading to.”

    Gbemisola said the feat would motivate her to win the world challenge.

  • Customs arraigns Chinese for unlawful exportation of wood

    Customs arraigns Chinese for unlawful exportation of wood

    The Nigeria Customs Service (NSC) Monday arraigned a Chinese, Zhu Jinxin, at the Federal High Court in Lagos for allegedly attempting to export several logs of wood that was prohibited.

    The prosecution said he brought the wood in a container to Tin-Can port to be exported to China last November 16.

    NCS said he did so notwithstanding an export prohibition on the wood which was in force at the time.

    The alleged offence, the Service said, is contrary to Section 64(1)(b) of the Customs and Excise Management Act, Cap C45 of Laws of the Federation of Nigeria, 2004.

    Jinxin pleaded not guilty to the one-count charge.

    Justice Hadiza Shagari granted him bail for N10 million with two sureties.

    Trial will begin on October 4.

  • Our economic pact with Nigeria, by Chinese envoy

    Our economic pact with Nigeria, by Chinese envoy

    Chinese Ambassador to Nigeria Gu Xiaojie, who was represented by Deputy Ambassador Qin Jian at the Summit on China-Africa Cooperation: Who Really benefits? organised by Africa Today, sheds light on his country’s pact with Nigeria. Excerpts from his address: 

    Given the multipronged and comprehensive development of bilateral relations, the theme for today’s Summit, China-Africa Cooperation: Who Really benefits? in my opinion catches the key point. Economic and trade cooperation always play the role of ballast in the development of China-Nigeria relations. It is very symbolic that we gather here today with so many friends in politics and business from both China and Nigeria, to renew our friendship and advance cooperation, which I believe will instill more positive energy into long-term development of bilateral relations and pragmatic cooperation.

    The past year of 2015 witnessed bilateral relationship between China and Nigeria going through an important historical period and mounting a new step, with care and efforts from leaders of both countries. Bilateral political relationship advanced steadily. High-level leaders exchanged visits frequently. Chinese President Xi Jinping met with Nigerian President Buhari twice last year. The two leaders exchanged views on bilateral relations and issues of common concern, reached wide-ranging consensus, charted the direction of future development of China-Nigeria strategic partnership. Economic and trade cooperation has gained constant progress and new growth points, extending cooperation to areas beyond trade and infrastructure, such as agriculture, telecommunication, solid minerals and free trade zone. Nigeria is China’s No.1 engineering contract market, No.2 export market, No.3 trading partner, and major investment destination in Africa. People-to-people exchanges become closer, deepening understanding towards each other. The enthusiasm to learn Chinese is running high among Nigerian young people, and more and more Nigerian students wish to study in China, indicating the solid foundation of China-Nigeria friendship.

     

    Good news coming this year

     We’ll have a fresh start for the year ahead. As the year 2016 begins, I believe that all friends at present, just like me, share full expectation for even bigger progress of China-Nigeria relations in the new year. In fact, there will be at least three good news to come on the development of bilateral relations this year.

    The first is the state visit to China by President Buhari, which has drawn new blueprint for the bilateral relations. This is the first visit to China by President Buhari since he came into office and also makes him the first African leader to visit China after Forum on China-Africa Cooperation (FOCAC) Johannesburg Summit, which is of great importance to China-Nigeria and China-Africa relations. During the visit, the two leaders held talks and meetings had an in-depth exchange of views on cooperation in all fields and laidout the blueprint for bilateral relations under new circumstances. As the barometer and booster of China-Nigeria relations, frequent high-level exchanges will not only help the political mutual trust to increase, but also inject strong impetus into the pragmatic cooperation in various fields between the two countries.

    The second is the celebration for the 45th anniversary of the establishment of China-Nigeria diplomatic relations, which will provide new opportunities for both countries. Early this year the two heads of state and foreign ministers exchanged congratulatory messages on the 45th anniversary and spoke highly of China-Nigeria diplomatic ties. Together with Nigerian government and civil organisations, the Chinese Embassy also held a series of celebrating events, such as reception, symposium and artistic performance recently. Looking back into the extraordinary path of China-Nigeria relations in the past 45 years, we might find that four major factors, namely equality and mutual trust in political exchanges, unity and coordination in international affairs, win-win cooperation in economic and trade cooperation and mutual learning in civilisation, make China and Nigeria to become sincere friends, good brothers and trustworthy partners. In the days ahead, both sides should take the 45th anniversary as an opportunity to enhance close and friendly exchanges of all levels and pragmatic cooperation in all areas to usher in an even better future for China-Nigeria relations.

    The last is the implementation of the outcomes of FOCAC Johannesburg Summit, which will inject fresh vigor into the development of bilateral relations. In December last year, the FOCAC summit was held successfully in Johannesburg. This summit elevated China-Africa relations to the comprehensive strategic and cooperative partnership, determined the ten key cooperation plans in areas of industrialisation, agricultural modernization, infrastructure, finance, green development, trade and investment facilitation, poverty reduction and people’s welfare, public health, people-to-people exchanges, as well as peace and securityÿwhich gained unanimous support and high praise from African countries and also provided a good platform to the deepening China-Nigeria pragmatic cooperation in various fields. The most salient feature of these plans is that we want to transition from a trade pattern that has so far been dominated by resource products to more investment and industrial cooperation. By encouraging more Chinese businesses to invest in Africa, we want to help the continent accelerate its industrialisation and boost its capacity for development. So, these plans couldn’t have come at a better time. Just four months after the summit, we have gotten into touch with over 20 African countries to follow up on the outcomes of the summit. A number of early harvest items will materialise soon, and the China-Africa Fund for Industrial Cooperation is already up and running. I do believe the implementation of FOCAC outcomes will provide a stronger driving force for China-Nigeria cooperation.

     

    The China miracle

     Now, I would like to brief you on China’s economy, to which all of you might pay great attention. For the past 30 years, China’s economy kept a two-digit growth and created “China Miracle”. In 2015, despite the weak recovery of the world economic growth, China’s economy has achieved stable and sound development. Firstly, the economy operated within an appropriate range. GDP reached 67.7 trillion yuan, representing an increase of 6.9% over the previous year—a growth rate faster than that of most other major economies. Secondly, encouraging progress was made in structural adjustment. The service sector as a proportion of GDP rose to 50.5%, accounting for more than half for the first time. The contribution of consumption toward economic growth reached 66.4%. Thirdly, new driving forces for development grew rapidly. Further progress was made in implementing the strategy of innovation-driven development. Business startups and innovations by the general public flourished, with the number of newly registered businesses rising by 21.6% in 2015, or an average of 12,000 new businesses per day. Fourthly, living standards improved. Personal per capita disposable income increased by 7.4% in real terms, overtaking the growth rate of the economy. In rural areas, greater alleviation efforts reduced the number of people living in poverty by 14.42 million.

    As the deep-seated impact of international financial crisis reverberating, the world economy is still undergoing profound adjustment. China’s economy has been integrated in the rest of the world and its economic development has entered the new normal, therefore it is in consistence with general economic rules for China’s economy to shift its focus from speed and scale to quality and efficiency with slower growth speed. Notwithstanding serious challenges of the inadequate global demand and inappropriate domestic production and supply structure, the basics of China’s economy towards a positive long-term direction haven’t changed. Fundamental features of China’s economy such as good resilience, full potential and big adjustment space, haven’t changed. Good foundation and conditions upholding the sustainable growth of China’s economy haven’t changed. The progress of economic restructuring hasn’t changed. In 2016, the Chinese Government will work in accordance with the overall plan for promoting all-round economic, political, cultural, social, and ecological progress and the Four-Pronged Comprehensive Strategy, continue reform and opening up,            follow the new vision of development, maintain a balance between ensuring steady growth and making structural adjustments, strengthen supply-side structural reform, accelerate the fostering of new driving forces for development, cut overcapacity, excess inventory and deleverage, reduce costs, strengthen points of weakness, and ensure that China’s economy, like a gigantic ship, breaks the waves and goes the distance.

    Recently, the Fourth Session of the 12th National People’s Congress and the Fourth Session of the 12th CPPCC National Committee of China were held in Beijing. The two sessions, called in brief by Chinese usually, are one of the most important political events in China. The two sessions this year deliberated and passed the draft of China’s “13th Five-Year Plan”, and discussed some hot issues such as comprehensively deepening reform, enhancing endogenous dynamic of economic growth, strengthening supply-side structural reform and maintaining a balance between environment protection and economic growth. The “13th Five-year Plan” raised the concept of achieving innovative, coordinated, green, open and shared development. This reflects China’s development guideline and confidence, signifies an in-depth reform affecting the overall development of China, and provides ground support for long-term economic stability and development. During the “13th Five-year Plan” period, the Chinese Government has both confidence and capability to maintain a mid-to-high level economic growth, to sustain China’s high contribution to global economic growth, and to continue offering development opportunities to all other countries.

    Nigeria…an important partner

    Nigeria is an important partner of China and the biggest economy and most populous country in Africa. China will firmly implement the policy of “sincerity, real results, affinity and good faith” towards Nigeria and Africa, uphold the correct viewpoint of righteousness and benefit, join hands with Nigeria for win-win cooperation and persist in planning and promoting bilateral relations from a strategic and long-term perspective.

    Our friends in Africa say that if you want to go fast, walk alone; and if you want to go far, walk together. Chinese people say that when big rivers have water, the small ones are filled; and when small rivers haven’t water, the big ones are dried up. All these sayings speak to one same truth, that is, only through win-win cooperation can we make big and sustainable achievements that are beneficial to all.

    While celebrating the 45th anniversary of the establishment of China-Nigeria diplomatic relations and President Buhari’s state visit to China, our two countries should take these opportunities to give full play to the two major advantages of traditional friendship and strong economic complementarity, and make full use of the FOCAC platform. To this end, I have the following specific suggestions:

    To enhance political mutual trust, maintain close and friendly exchanges of all levels in all areas; deepen cooperation in areas including infrastructure construction, industrial parks and zones, industrial connection, resources exploration and utilization, processing and manufacturing, related industrial production capacity and agricultural modernizsation; start the construction of a series of big projects; expand cultural and people-to-people exchanges in education, science and technology, culture, healthcare, youth, media and others; and beef up cooperation in security, enhance communication and coordination on major international issues, so as to jointly safeguard the common interests of China and Africa as well as other developing countries. In this way, the China -Nigeria strategic partnership with win-win cooperation at the core could bring tangible benefits to the two peoples.

  • Chinese Yuan accounts for 6.7% of $27.34b forex reserves

    Chinese Yuan constitutes only 6.7 per cent of Nigeria’s $27.34 billion foreign exchange (forex) reserves, data from the Central Bank of Nigeria (CBN) has shown.

    The figure indicted that the US dollar constitutes 76.6 per cent of the total, having fell from its level of $22.59 billion in September last year to $21.67 billion in December.

    Other currencies in the basket and their shares include Saudi Riyal (SDR) worth $2.32 billion; (8.2 per cent), Euro worth $1.69 billion (six per cent), and British Pound Sterling worth $688.18 million (2.4 per cent).

    The report titled: Currency Composition of Foreign Exchange Reserves indicated that forex inflows to the economy in December last year stood at $20.2 billion as against $27.3 billion recorded in September, representing a decrease of 25.76 per cent.

    While in the corresponding quarter of 2014, the recorded inflow was $37.01 billion, indicating a major decrease of 45.2 per cent. On the other hand, total outflows in the period under review amounted to $8.61 billion. This represents a decrease of 21.22 and 41.90 per cent in comparison with the levels recorded in the preceding quarter and corresponding quarter of 2014, respectively.

    Consequently, a net out-flow of $11.67 billion was recorded in December last year as against $16.39 billion in September.

    Foreign Direct Investment (FDI) inflows declined to $501.83 million in December last year from $1.21 billion in September. Estimated portfolio investment inflows (liabilities), however, increased significantly from a reverse investment level of $387.32 million in September to $1.15 billion in December.

    The aggregate supply of forex for visible and invisible trade during the period under review stood at $8.48 billion. This represents a decrease of 18.3 and 55.5 per cent in comparison with the levels recorded in the preceding quarter and corresponding quarter of 2014, respectively.

    The total amount utilised in December last year, consists of $5.04 billion and $3.45 billion for visible and invisible trades, representing 59.4 and 40.6 per cent, respectively.

    Analysis of forex utilisation by sectors revealed that $5.03 billion was spent on the importation of various items into the country in December representing 59.4 per cent of the total foreign exchange utilised during the period. This also represents a decrease of 8.3 per cent and 44.9 per cent in comparison with the levels recorded in the preceding quarter and corresponding quarter of 2014, respectively.

  • Increased Chinese loans to Nigeria

    Increased Chinese loans to Nigeria

    During his official visit to China, President Muhammadu Buhari concluded with the Chinese president a $6 billion loan to Nigeria for the construction of the Lagos-Calabar rail project. Nigeria is to provide some N40 billion as counterpart funding for this huge infrastructure project, the largest since the Chinese built in the 70s the Tan-Zam railway, linking Tanzania with Zambia.  It is the largest ever Chinese loan to an African state. Despite some legislative hiccups here in Nigeria over the counterpart funding, the project will almost certainly go ahead. Nigeria needs it badly to provide a coastal railway between Lagos and Calabar with future possible lateral rail connections on the route. The critical importance of this project to Nigeria is so obvious that it should not evoke any controversy. It should go ahead as speedily as possible.

    In recent years, China’s loans and investments in Nigeria have increased significantly. Before the current $6 billion loan, total Chinese loan to Nigeria was $13.3b, roughly a third of its total loans and investments in Africa. In 2015, President Goodluck Jonathan secured a Chinese loan of $1.5b for infrastructure support, including the development of the aviation sector. Chinese investments in Nigeria and Africa have become even more critical in view of the global recession, the fall in oil prices, and the inability or unwillingness of the G7 states to make fresh investments in infrastructure developments in Africa. For instance, in 2015 President Barack Obama announced a miserly $8b as the total US foreign direct investment in Africa. Over the years cumulative G7 investments in Nigeria and Africa have fallen sharply, partly due to disappointment with African states in the management of their economies, particularly over the prevailing corruption on a massive scale in these African states, as well as internal pressures in the G7 countries for greater internal social development. There is growing turmoil in most of the advanced industrial countries that makes foreign investment less attractive and a distraction from facing their own domestic severe economic challenges. The home front has become a priority for them.

    In this situation, China is better placed to take up this slack in foreign investment in Africa. It is the second global largest economy and has the largest reserves of US dollars. It is investing massively in Europe, Asia and the Americas, including the US where it is buying up blue-chip companies. Though its economy has slowed down to only seven per cent this year, it is still the fastest growing economy in the world. China’s interest in Africa, particularly Nigeria, should be viewed largely on economic terms. It is not wholly benevolent. China will in future need new and large commercial markets, which only Africa can provide. Increasingly, China’s exports will face restrictions in Europe and the US, currently its biggest markets. It will have to look for new markets in Africa where the population projection is that in the next two or three decades, Africa’s total population could be close to two billion. It is this huge market that China is eyeing. The Chinese have a reputation for long range planning, in decades, well ahead of their economic and industrial rivals.

    Until recently, Nigeria has been rather slow in seeking closer economic relations with China. As Amb. Olu Sanu, a former Nigerian Ambassador to China, observed in his recently published biography, Nigeria was really not serious about promoting economic relations with China, until recently. From 1972, when Gen. Yakubu Gowon first visited China as head of state, virtually every Nigerian head of state, including the late Gen. Sani Abacha, has paid an official visit to China, to ask for Chinese technical and financial assistance. When granted by the Chinese, who were eager to promote economic relations with Nigeria, these offers have not been duly taken up by the Nigerian authorities.

    For most of the time the military were in power in Nigeria, they were suspicious of the Chinese spreading their socialist doctrines to Nigeria. Such suspicions no longer exist. Nigeria recognised China in 1973 and supported its admission to the UN, thus ending China’s international isolation. In addition, the periodic oil boom made offers of Chinese financial assistance somewhat less attractive. Now, the situation has changed. China is still a one party communist dictatorship, but its economy is becoming increasingly diverse, freer and capitalist in structure. China is no longer interested in spreading its socialist doctrines to any country, particularly in Africa.

    Nigeria’s economic and financial situation has changed drastically. Its estimated growth rate this year will be only two per cent, a drastic fall from its 2014 growth rate of nearly seven per cent. Without the injection of fresh foreign capital, its future economic growth prospects are dismal. New jobs, on a massive scale, are badly needed to contain and reduce possible social tensions that may tear the nation apart. It is in this light that the $6b Chinese loan for the Lagos-Calabar rail lines should be viewed. The project will create new jobs. The Chinese are already involved in the development of railways in Nigeria. They handled the refurbishment of the Lagos-Kano line, as well as the fast train from Kaduna to Abuja. They have an impressive global reputation and record in the business of railway development. Even in Europe, Chinese expertise in this respect is highly valued and respected.

    Of course, Nigeria should be concerned about its growing trade imbalance with China. Chinese exports to Nigeria represent some 80 per cent of its total trade with Nigeria. This is an awful trade gap that Nigeria should seek to address. Nigeria must also find ways of blocking Chinese exports to Nigeria of cheap and fake products, such as textiles, plastics and drugs. It is obvious that Nigeria, with the connivance of our own traders, is being used as a dumping ground for cheap Chinese products. It is up to Nigeria to take proactive measures within the ITO provisions to reduce this huge trade imbalance. It should take advantage of the Chinese ‘benevolent trade policy’ to reduce the trade imbalance between the two countries. Under this policy, the Chinese are obliged to buy up our surplus export commodities, as it is doing in Tanzania in respect of coffee and tobacco. The problem is that Nigeria has little or no agricultural surpluses that the Chinese can buy up.

  • We ‘re ready for Buhari’s visit, says Chinese official

    We ‘re ready for Buhari’s visit, says Chinese official

    President Muhammadu Buhari will pay a state visit to China from next Monday to Friday at the invitation of Chinese President Xi Jinping, Foreign Ministry spokesperson Lu Kang said yesterday.

    “China and Nigeria enjoy a traditional friendship. This year marks the 45th anniversary of China-Nigeria diplomatic ties,” Lu said at a daily press briefing.

      During the visit, the Chinese president will hold talks with Buhari, and Premier Li Keqiang and top legislator Zhang Dejiang will have separate meetings with him.

    They will exchange views on bilateral relations and issues of common concern, Lu said.

    Lu added that the two sides will sign cooperation agreements and hold a forum on production capacity cooperation as well as a reception marking the 45th anniversary of diplomatic ties.

    Calling Nigeria “a major strategic partner of China in Africa,” the Chinese spokesman said the two countries have maintained frequent high-level visits, cooperated for strong results and maintained positive communication and coordination in international affairs in the last 45 years.

    “We believe President Buhari’s visit will give new impetus to the all-round development of the China-Nigeria strategic partnership of cooperation,” Lu said.

      Buhari will also visit Shanghai, an economic hub in east China and Guangzhou, capital of south China’s Guangdong Province.

  • Why we invested in Chinese brands, by Elizade MD

    Elizade Nigeria Limited Managing Director Ademola Ade-Ojo has said that the company’s investment in Chinese brands is to provide more vehicular options to customers.

    Ade-Ojo spoke at the unveiling of $2 million showroom, which will take care of sales, services and spare parts.

    The showroom was meant for JAC Motors, a popular Chinese brand.

    Ade-Ojo added that JAC brands through Elizade Autoland “is poised to be meeting point for cost effective, quality vehicles for our loyal customers and others willing to believe in what we have discovered over the last three years.”

    He said it took the company three years to launch the brands because “we needed to be absolutely convinced that the JAC brand will not be a disappointment to Nigerians willing to use it for their everyday needs”.

    JAC, he said, is ranked in the top 10 auto manufacturers in China with sales close to 600,000 units last year and almost 60,000 units exported.

    On after sales, the junior Ade-Ojo said: “We intend to continue to develop other facilities across various states to further cement our conviction about the brand and to ensure that our customers will never suffer any disappointing experience whatsoever but in the meantime, our branch locations nationwide will provide needed services to customers who purchase the vehicles outside of Lagos,” he said

    Earlier, Elizade Nigeria Limited founder, Chief Michael Ade-Ojo, promised that the brand would one day be ranked among top vehicles like Toyota.

    This, he said, would indeed be a great success story for us.

    Recalling his over 40-year experience with the Toyota brand, Chief Ade.Ojo said it appears that history is about to repeat itself with the JAC brand.

    “Toyota, you can say was like a diamond in the rough back in the 70s, but today, everybody knows that the rough is totally removed and the diamond is now etched in perfection. JAC is the diamond in the rough today that Toyota was over 40 years ago.

    “The last thing I would want to do is to disappoint my customers who have come to rely on us and trust that we would offer them nothing but good vehicles,” Chief Ade-Ojo said.

    Elizade Chairman Dr Herbert Ajayi said the organisation was committed to satisfying customers’ needs and establishing best quality.

    Ajayi said: “This facility defines the value we are projecting to all our customers at Elizade and that is to provide quality products while offering genuine spare-parts and after sales value at all times.”

    Maintaining that the vehicles were tested vigorously in Nigeria and adjusted to meet requirements in the country, the chairman said, “we can only assure you we will continue to drive customer value ahead and make life easier and better for Nigerians as a whole.

    “We did a 120-day test-run on the various models of the JAC vehicles which included passenger cars and trucks. We can confidently say that we have achieved what we set out for with the JAC brand, and would not relent in offering quality automobiles and services to our customers,” Ajayi said.