The downsides of Nigeria – China trade relationship

There is no doubt that the last decade has witnessed a blossoming trade relations between Nigeria and China. This, of course, has culminated in stronger economic relations and growing trade between the two countries as well as the flow of Chinese entrepreneurs and financial flows into the country to set up businesses. But there are some downsides which the two countries must quickly address; otherwise Nigeria will continue to be at the receiving end of the bad side of the trade relationship.

It is a known fact that Nigerian made electric wiring cables are far more stronger and superior to their Chinese made counterparts. Chinese counterfeit and substandard electric wiring cables have caused many fire incidents in the country leading to the loss of billions of Naira worth of goods at home and in market fires.

Far more worrisome and saddening is the shoddy and counterfeit products from China which have taken over most of Nigerian markets sending away better quality products from other western countries

 

Nigerian authorities are stymied. Corruption is endemic in the country, thus making it more difficult to enforce safety standards by the Customs Service and the  Standards Organisation of Nigeria (SON).  Unfortunately, shoddy and substandard products manufactured in China continue to dominate the Nigerian markets, thus giving the consumer little or no other choice as a result of their low prices.

In Kano, angry protesters in the streets have blamed widespread joblessness in Nigeria and particularly in the state on China, which is manufacturing African fabric designs in shimmering hues more cheaply than those made in Nigeria, thus causing unemployment in Nigeria. Recall that over the last two decades, employment in Nigeria’s textile and apparel sector plummeted from about 700,000 workers to 20,000 people, a clear evidence of what cheap and poor quality Chinese textile fabrics have done to the Nigerian economy.

Specifically, in Kano, employment at the centuries-old dye pits has dropped to 250 people, from nearly 1,500 a decade ago, courtesy of the Chinese companies which produce virtually identical traditional Kano dye pit patterns of fabrics using synthetic dyes, and their sales now dominate in Kano’s open-air market.

A worried Emir of Kano, Muhammadu Sanusi II, said the Chinese have basically copied every textile product in Nigeria. He was concerned about what could happen to Kano where there are large numbers of youths and where large numbers of industries are down.

In the construction industry, experts indicate that Chinese construction companies, mostly state-owned, have largely taken over the local construction jobs worth some $25.6 billion, the highest anywhere in the world since 2005, edging out other foreign and Nigerian companies.

But, far more worrisome and saddening is the shoddy and counterfeit products from China which have taken over most of Nigerian markets sending away better quality products from other western countries. It is saddening that Chinese manufacturers will prefer to manufacture quality products for the American and European markets while giving African markets poor quality products.  If anything, time has come for Nigeria to reject such dumping of shoddy products from China in the Nigerian market. Nigerians must join hands to exterminate shoddy and substandard products from Nigerian markets.

Henceforth, Customs Service and SON must collaborate and stop the dumping of shoddy and substandard products in the Nigerian market. They must trace the importers of the products and their Chinese connections with a view to banning products from such Chinese owned firms in Nigeria.  Apart from finding the importers of the substandard products, the Customs Service and SON must comb the markets, seize and destroy all such shoddy and substandard Chinese products found in the markets and their sellers punished as accomplices.

Also, the Ministry of Trade and Investment would need to direct the attention of the Chinese investors in the country and their embassy to the ills of dumping of shoddy and substandard products from China in the Nigerian market. In addition, the various Nigerian-Chinese trade associations must brace up and fish out those responsible for the reprehensible trade practice of dumping of shoddy and substandard products from China in Nigeria and report them to the Customs Service and the Nigerian Standards Organisation for sanction.

The Federal Government has a duty to ensure that the current smooth relationship between Nigeria and China is not strained by unscrupulous businessmen from China who are in the habit of dumping shoddy and substandard products in the Nigerian market. As such, the Federal Government would need to point it out to the Chinese authorities with a view to allowing them to call to order their own citizens who are suspected to be engaged in such bad business practice.