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

Image: Flickr, 
Douglas Johnson
Image: Flickr, Douglas Johnson

This study outlines major Chinese investments in Nigeria’s manufacturing sectors, specifically looking at their potential to foster industrialization and structural transformation.

I examine technology transfer mechanisms that may catalyze transformation processes, employing structured survey methods to understand the drivers of Chinese outward investment in Nigeria as well as the challenges they face in—country. Though positive cases exist of technology and skills transfer from Chinese firms to the local economy, poor infrastructure, lack of skills, and low social trust are barriers to the development of linkages into industrial supply chains. For firms, political and exchange rate instability are consistently cited challenges, particularly in the wake of the recent economic recession; however, firms who have localized most successfully may be better prepared to weather these challenges.

1 Apr 2020