‘Africa’s China’: Chinese Manufacturing Investment in Nigeria in the Post-Oil Boom Era and Channels for Technology Transfer

Image: Flickr, Fortune Global Forum
Image: Flickr, Fortune Global Forum

Nigeria is a primary destination for small and medium-sized Chinese investments in manufacturing. These investments have the potential to foster technology transfer that can contribute to industrialization and structural transformation.

However, this potential appears limited. This study uses in-depth surveys and site visits of Chinese firms’ clusters, including in Lagos, Ogun, and Benin City, to understand the motivations driving investment as well as the challenges faced after the post-oil price collapse. While positive examples exist of technology and skills transfer, these mechanisms are hampered by poor infrastructure and weak local supply chains. Political and exchange rate instability have been consistent challenges for Chinese firms, though those that localized most successfully may be better prepared to weather future challenges.

1 Jan 2020