- Experts at the Lagos FOCAC Forum warned that Nigeria’s 27.5% lending rate and unreliable electricity are crippling local manufacturing.
- Despite $17 trillion in China-Nigeria trade, over-reliance on imports and weak infrastructure threaten sustainable growth.
- Stakeholders urged Nigeria to improve digital systems, reduce borrowing costs, and invest in power to benefit from China-Africa cooperation.
Stakeholders have raised fresh concerns about Nigeria’s poor electricity supply and high lending rates, warning that these challenges continue to cripple local manufacturing and weaken economic competitiveness.
Experts voiced their concerns during the second Lagos Forum 2024 on China-Africa Cooperation (FOCAC), which took place on Wednesday, April 30, in Lagos. The event, themed “Exploring New Paths for China-Nigeria and China-Africa Cooperation,” brought together leaders from the Nigerian Institute of International Affairs (NIIA), the Chinese Consulate General in Lagos, Africa-China Economic Magazine, and the Institute of African Studies, Jinhua, China.
Speakers acknowledged the sharp growth in China-Nigeria trade, which reached $17 trillion in 2024. However, they warned that structural problems within Nigeria could block long-term gains from the partnership.
Charles Udeogaranya, President of the Goods Made-in-China Importer Association, blamed Nigeria’s 27.5 per cent lending rate for choking business growth. “Is it affordable to produce at that rate? The answer is no,” he said. He compared Nigeria’s loan conditions to China’s, where businesses secure loans at rates below 3 per cent. Udeogaranya said these harsh financial conditions leave Nigerian manufacturers unable to compete.
He also criticised Nigeria’s unstable electricity supply, which increases production costs. “We need to manufacture locally, but how do we achieve that with these obstacles?” he asked.
Dr. Chinyere Almona, Director-General of the Lagos Chamber of Commerce and Industry (LCCI), highlighted China’s $20 billion investment in Nigeria’s oil and gas, ICT, agriculture, construction, and manufacturing sectors. She warned that Nigeria still lacks the readiness to turn these investments into long-term economic growth.
She reported that Chinese imports accounted for 82.5 per cent of Nigeria’s total trade volume in 2024. She also revealed that Nigeria imported around $40 trillion worth of goods, more than double the recorded bilateral trade volume. She argued that this imbalance weakens domestic industries.
“Our manufacturers need better infrastructure and affordable financing to compete globally,” she stated.
Ikenna Emewu, Publisher of Africa-China Magazine, called for Nigeria to mirror China’s digital economy model. He noted that China generates 43.7 per cent of its GDP from the digital economy, while Nigeria contributes only 17.6 per cent.
He urged Nigerian leaders to invest in digital infrastructure and strengthen cybersecurity. Emewu praised renewing the currency swap agreement between the Central Bank of Nigeria and the People’s Bank of China. He said Nigeria could reduce its reliance on the US dollar and strengthen local trade if it supports the agreement with digital payment systems.
Participants closed the forum, strongly calling for reforms. They insisted that the government fix the power sector and lower borrowing costs to boost manufacturing and economic productivity.
Despite the strong trade links with China, experts argued that Nigeria must create better conditions for local industries to grow and fully benefit from foreign partnerships.
The forum brought together diplomats, economists, and business leaders to examine ways Nigeria can deepen China-Africa cooperation and remove key barriers to industrial progress.