NIGERIA-CHINA: AN EXAMINATION OF RECENT BILATERAL TRADE RELATIONS

Abstract

This study examines the trends, composition, and intensity of Nigeria-China bilateral trade for the period, 1992-2016. Tables, graphs, and trade intensity formula were used. The results show that Nigeria’s trade with China has considerably recorded remarkable growth. With the exception of mineral fuels and products of their distillation, the share of major products exported to China over the period remained insignificant. More importantly, the results reveal that the share of major products imported from China remained significant, indicating that Chinese exports supply to Nigeria is more diversified than that of Nigeria's exports supply to China. Nigeria’s trade intensity index shows a low possibility of increasing export to China and a high possibility of increasing import from China. In the case of China, there is exists a high possibility of increasing its export and decreasing its import to and from Nigeria. Based on the study’s findings, the study recommends an urgent need for Nigeria's government to encourage the export of various products in order to promote bilateral trade and mitigate the existing trade imbalance. The study further recommends the need for government, researchers, and export promotion agencies to identify new market opportunities for Nigeria's exports in the Chinese market.