Huge Business Opportunities in China and Nigeria

Nigeria is considered as a bellwether of the West African economy with the fastest growing space in Africa. As the second largest economy in Africa,Nigeria has an average annual GDP growth rate of 5%-7%. Even on a global scale, Nigeria also occupies an important international status for its rapid development space, which maintains an average annual growth rate of 6.8% in the past 10 years. As a member of OPEC, it ranks first in Africa in oil reserves and production and has nearly 40 billion US dollars in foreign exchange reserves enabling a sufficient payment capacity and strong market purchasing power.

It is reported that nearly 3.9 million households in Lagos, Nigeria's major economic city, have an annual income of more than 1.83 million naira (about $5,000) and an average monthly household income of 152,500 naira. Not only that, such high-income households are expected to reach 6.9 million by 2030. A doubling of the annual income of middle-class households will energize African economies and increase urban governance and social prosperity.

Nigeria is China's third largest trading partner in Africa, the second largest export market. China's trade with Nigeria accounts for 39 percent of the total trade with ECOWAS and 8.1 percent of the total trade with Africa. In recent years, the economic and trade development between China and Nigeria has entered a fast lane. Nigeria has been paying close attention to China's Belt and Road Initiative and strengthening cooperation with China through this initiative. In April 2005, Nigeria and China established a strategic partnership to enhance mutual benefit in various fields.

The Nigerian government provides many incentives and favorable conditions for foreign investment in Nigeria. For example, Chinese investment enterprises investing in Nigeria can enjoy many preferential conditions provided by the African Development and Opportunity Act. After the establishment of FOCAC in 2000, bilateral trade began to expand, which provided an important platform for collective dialogue and effective practical cooperation mechanisms between Nigeria and China.