Banking in Nigeria and Chinese Economic Diplomacy in Africa
by Abiodun Alao
SAIIA Occasional Paper No 65, July 2010
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While Sino–Nigerian relations have grown significantly since the 1970s, several aspects of the relationship have been controversial and difficult. However, the special attraction the two countries hold for each other has made the relationship persist, even amid difficulties and challenges. Although several aspects of the relations have received academic and policy attention, an area that remains as yet understudied is the relationship between the two countries in the banking sector. This is particularly important, as the banking sectors in both countries are undergoing significant changes. The objective of this study is to take a panoramic view of the changes going on in the Nigerian banking sector and to situate the discussion in terms of the broader Chinese economic interests in Nigeria. This paper argues that the current changes in the Nigerian banking sector are likely to set the sector on a path that can win it respectability and respect from across the world and that the inclusion of banking in China’s economic interests in Nigeria can be mutually beneficial to both countries. While China may have justifiable grounds to be unhappy with aspects of its relationship with Nigeria, the paper concludes that the future of the economic relationship between the two countries is bright and potentially beneficial to both nations.
