Top Economic Sectors in Nigeria Dominated by The Chinese
- Chinese firms mostly dominate various sectors of the Nigerian economy and have accessed most areas
- From fintech to construction and manufacturing, the Chinese have virtually accessed every aspect of the economy
- Their investment is said to be more than $20 billion in various aspects of the Nigerian economy and employ 95 per cent Nigerian
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As of 2019, Nigeria’s population was estimated at 203.42 million, a 2 per cent annual growth, ranking seventh most populated country in the world.
Nigeria represents 70 per cent of the West African market and remains the most competitive investment destination for businesses.
Source: Getty Images
China has since positioned itself, leveraged the large population, and unleashed a horde of investors and businesses on the Nigerian market. From textile, garment making, household appliances, furniture, automobile, and consumables to fintech, the Chinese are everywhere and in almost all sectors in Nigeria.
Today, their investment in Nigeria is worth over $20 billion. Ye Shuijin, in a recent interview, said Chinese firms in Nigeria employed over 200,000 Nigerians and said Chinese investment in Nigeria is estimated at $20 billion. He stated that their workforce in Nigeria is about 95 per cent.
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Top sectors with Chinese dominance in Nigeria
Fintech
The financial technology sector in Nigeria is burgeoning and thriving and has become a honeypot for the Chinese in Nigeria.
From lending apps to digital payment platforms like Opay and PalmPay, the Chinese are kings in the industry.
According to recent reports, Opay makes more than $10 million daily in transactions through its agents.
Manufacturing
Many Chinese firms are competing with their Nigerian colleagues manufacturing sector.
The Chinese-owned Western Metal Products Company Limited (WEMPCO) is a multi-billion naira integrated mill at Magboro and is the first in Africa.
The steel manufacturing plant has a production capacity of 700,000 metric tonnes of machinery.
Transportation
The Chinese also dominate the transport sector. For example, the $1.49 billion Lagos Ibadan railway contract was awarded to a Chinese company, China Civil Engineering Construction Corporation (CCECC). The Olokola Deep Port project was also awarded to China Ocean Shipping Group.
$10 billion power project
Their firms are involved in three main projects in Nigeria’s energy sector, estimated at $10 billion.
The Mambilla hydroelectric power plant will deliver about 3,050 Megawatts of electricity in Taraba State.
Others are in:
Aviation
General Merchandise
Chinese Banks mull Nigeran Operations amid trade increase between the two Countries
Recall that Legit.ng reported that the Chinese Ambassador to Nigeria, Cui Jianchun, said some Chinese banks are mulling the option of establishing operations in Nigeria to take advantage of the growing transactions between the two countries.
The Ambassador said this during BusinessDay’s CEO Forum in Lagos and tagged Managing the Future: Unlocking the Power of the Platform Economy.
Trade between Nigeria and China has doubled in the last four years and jumped 157 per cent to N1.49 trillion in the second quarter of this year from N578 billion in the second quarter of 2018.
Source: Legit.ng
