President Muhammadu Buhari’s recent visit to China is expected to yield investments more than imports, as the federal government has said it is in talks with China in order to be importing some of its own items from Nigeria.
In order to help reduce the gulf in trading between the two countries, Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has said that part of Nigeria’s deal with China is that Nigeria would become the Asian country’s trading hub in West Africa.
Speaking at a press conference at the World Bank headquarters in Washington DC, on the last day of the 2016 World Bank/IMF spring meeting, Emefiele also mentioned that China has appointed South Africa as its trading hub for Remnibi transactions in the Southern African region, and appointed Kenya as its trading hub for East and Central Africa.
Emefiele who explains that the business relations between the two countries will be mutually beneficial, adds that Nigeria is in talks with China so that it would also be importing some of its own items from Nigeria, thereby balancing trade.
The CBN Governor says this will be of great benefit to Nigeria because it means less pressure on the dollar and consequently on our reserves.
According to Emefiele, during the China trip, they met with prospective Chinese investors who said they can now come in instead of exporting those items into Nigeria, that is, they can now bring those plants into Nigeria and begin to produce those things in Nigeria because our climate is good.
Using fertilizer as an example, he explains that the raw material for fertilizer is gas, which we have in large quantity here in Nigeria, so when the plant is set up here, we won’t need to import any raw material again. He further advocated for the people’s understanding of this new business prospects stressing that it is the light at the end of the tunnel.