Abstract

This paper investigates the complex interaction of Nigeria and China through the equilibrating approach with regard to the dynamics of trade, investment, and its geopolitical implications. Since establishing relations in 1971, Nigeria and China have come into a partnership which is multi-faceted, characterized by a strong increase in trade and foreign direct investment. However, the structural trade deficit, hugely in favor of China, raises concerns about Nigeria's economic dependency and long-term sustainability. This paper identifies the most relevant quality features of Chinese investments, the necessity of having in place strong regulatory frameworks that take into account the socio-economic impacts on local communities, and analyzes historical context, trade dynamics, and investment patterns that shape the relationship between key challenges—such as debt sustainability and governance issues—that arise when trying to achieve a balanced economic relationship. The findings have shown that if Nigeria is to gain effectively from the partnership with China, it should be in diversification of its economy, enhancement of local content policies, and promotion of technology transfer. Conclusively, the paper indicates recommendations to make the relationship more balanced and for mutual benefit, taking care of long-term development goals by both countries.