In this interview, Charles Onunaiju, a foreign policy scholar and the Director of the Centre for China Studies spoke to our reporter on the recent visit of Chinese Foreign Minister, Wang Yi to Nigeria, the implication of the visit on Sino-Nigeria relations and other sundry issues.
TD: What is your general assessment of Wang Yi’s recent visit to Nigeria and his bilateral talks with President Bola Tinubu and Minister Yusuf Tuggar?
OnunaiJu: First and foremost, I think the visit could be described as successful. As you know, it draws from a long tradition of 35 years since China’s foreign minister first visited Africa. However, for me, it is beyond tradition and mere symbols; it has the potential to deliver practical outcomes in the cooperation between the two sides.
In the particular case of Foreign Minister Wang Yi’s visit, it was clearly stated that the aim was to synergize with the Nigerian counterpart on the implementation of the 10 Partnership Action Plans, which were the outcome of the Beijing summit last September between Chinese and African leaders. Of course, the Nigerian president also paid his first state visit to China, where a lot of understanding was reached. The promotion of cooperation to a comprehensive strategic partnership is designed to build a community with a shared future between the two sides.
These are all part of Foreign Minister Wang Yi’s visit to Nigeria to activate the necessary protocols that will enhance the implementation of these key agreements. Tuggar emphasized that the visit was very consequential for Nigerian development. President Tinubu also reiterated that it holds significant promise for Nigeria’s economic recovery. It presents tremendous promise in that respect.
One key aspect is generating the necessary impetus for implementing the FOCAC Partnership Action Plans and, of course, the bilateral agreement between Nigeria and China, which includes the currency swap and infrastructure projects.
Just before the arrival of Foreign Minister Wang Yi, the China Development Bank released about $250 million for the completion of the Kaduna-Kano railway line. These are important tangible benefits for both sides. I believe that by working together, the two countries can truly optimize the outcome of this engagement, which is already showing signs of progress.
There is no doubt that the Nigerian side has demonstrated good faith in driving this process. However, let me emphasize that good intentions and honest intentions alone are not enough. As I’ve always said, Nigeria and China present mutual opportunities to each other.
To optimize these opportunities, we must build strategic capabilities to deliver on our end. Expressions of enthusiasm about potential are great, but remember, opportunities are best converted by those who are genuinely prepared.
Prepared in terms of institutional capacity, efficiency, and competence. These are the factors that drive mutual win-win outcomes in a cooperation and partnership like the one between Nigeria and China.
TD: What are the specific implications of this visit for China-Nigeria relations? How will this visit impact China-Nigeria friendship going forward?
Onunaiju: First and foremost, the Nigeria-China friendship is driven by mutual understanding between the two sides. It holds immense prospects for bringing value to our respective national aggregates. It’s not a stroll in the park or a trip to a cinema hall; it is designed to deliver tangible benefits that will enhance the aggregates of both nations. That is why I describe the cooperation as an opportunity for each other. Both of us are opportunities for each other.
As you can see, China is open to trade. They have provided a framework for advancing trade through the China-Africa Economic and Trade Expo, which now has a permanent mechanism and site in Hunan province.
Nigeria has also shown considerable interest by building a trade house in Hunan to advance this initiative. I believe we will see more trade facilitation. Additionally, the currency swap is designed primarily to enhance and facilitate trade.
The fact that the Chinese are reinvesting in that project after their initial investment in 2018 indicates that both China and Nigeria consider trade an important aspect of our cooperation. The question is, how do we ensure that this currency swap becomes central to Nigerian trade engagement with China? The operation of the first phase from 2018 was not optimal.
Many businesses have reported that they could not access the yuan, and some funds were auctioned without traders—especially small and medium-sized enterprises—being able to access these funds.
This time around, we must strengthen our institutional capacity to ensure that these funds are accessible to stakeholders in the sector. This is very important.
If you speak to the market, the Traders Association of Nigeria, or the Nigerian Chamber of Commerce, they will tell you that some of their members face real challenges in accessing these funds. This time, we need to engage those who are active in this sector. Our institutions should focus on engaging those who are making progress, those directly involved, so that it can have a real-time impact.
That’s where I emphasize institutional clarity—efficiency where people can get real-time information on outcomes and challenges.
Wang Yi’s visit will foster people-to-people cooperation. We have seen considerable cultural engagement between the two sides. People-to-people cooperation is the foundation of a long-lasting intergovernmental relationship.
Engagement in cultural fields, educational exchanges, business exchanges, and think-tank exchanges is vital. Part of the partnership planning involves mutual learning, which is carried out by people.
President Xi and the Chinese side view mutual learning as central to driving China-Nigerian cooperation going forward. We must leverage this crucial partnership action plan—mutual learning—to deepen engagement across the board. Media, think tanks, students, and cultural personalities must all come together.
We expect greater synergy in advancing people-to-people cooperation. Additionally, we have a mechanism currently in place that we can leverage: the China-Nigeria Intergovernmental Committee, a permanent mechanism for negotiation, consultation, and coordination. We should enhance this further.
Foreign Minister Wang Yi reiterated the strategic importance of the Nigeria-China Intergovernmental Committee as a framework for coordinating, advancing, consulting, and moving forward in Nigeria-China cooperation.
We should domesticate this critical institutional mechanism in China-Nigeria cooperation and ensure that it is thorough. It should not be a one-stop solution; it is designed to be a continuous mechanism for advancing, clarifying, and coordinating Nigeria-China cooperation. This mechanism is very important, as is the Office of the Strategic Partnership established by President Tinubu to report on progress.
These mechanisms demonstrate Nigeria’s commitment. However, as I have always said, commitment must be accompanied by institutional capacity building, or what I call institutional memory. Without institutional memory, we will not understand the flow of historical trajectories. If we do not understand that, we will not be able to piece together the trajectory of China-Nigeria cooperation and maximize the outcomes and benefits derived from it. So, from our side, we have much work to do, and from the China-Nigeria side, they also have much to do.
We can synergize; there is great room for synergy and maximizing what is clearly an opportunity between the two sides.
But as I mentioned earlier, we are both opportunities for each other. The one who benefits the most is the one who is most prepared by enhancing their capacity to engage maximally and optimally in this process. Well, thank you very much.
TD: You spoke about the currency swap agreement, and President Tinubu, when he received Wang Yi, also emphasized the need for the currency swap between both countries to be enhanced. What do you think are the factors mitigating against the successful implementation of the currency swap?
Onunaiju: President Tinubu, as you rightly mentioned, asked for more. However, it is not so much about wanting more for me; it is about the efficient and proper utilization of the currency swap mechanism.
The currency swap is a facilitator; it is not an end in itself. It is an enabler.
So the question is, how much do we have as a framework? How much do we have in place that the currency swap will enable? In this case, how have we managed to involve key stakeholders and actors in trade promotion and facilitation? Because trade itself is the goal—to facilitate and promote. That is the essence of the currency swap. It is intended to enhance and enable more trade between the two sides.
To what extent are critical players in this sector, especially from the Nigerian side, mobilized for the imperative use of this resource? That is what we should focus on. I have had the opportunity to speak with the head of the Traders Association of Nigeria, chambers of commerce, and independent business people, and the complaint is always the same: they cannot access this facility. They go to their banks, and the banks tell them it is unavailable.
We must strengthen our processes and ensure accessibility to these funds for stakeholders in this engagement. That is what we are advocating. We must ensure that those engaged in trade can access this currency swap.
This time, I am not overly concerned about wanting more.
While the demand for more is important—like President Tinubu mentioned—the volume of trade between Nigeria and China is substantial, and $2.7 billion is not enough. However, the key issue is improving the efficiency of how this currency swap operates. It must be clear, and those engaged in this sector must have access.
For me, this currency swap, which was instituted in 2018, achieved minimal impact in terms of trade. Still, about 70% of Nigerian small and medium-sized businesses that engage with their Chinese counterparts must still go through the US dollar or the Euro. The question is, how do we make this accessible? How do we ensure that those promoting and facilitating trade can access these funds? This is the fundamental question.
Financial institutions, like banks responsible for disbursement, should make these funds accessible. There should be clear criteria that must be outlined but are currently not in place.
What are the benchmarks for assessing it? Who should assess it? What is the criteria for assessment? What is the minimum one can expect? These need to be clearly spelled out. We cannot just ask for more when the existing framework has not been clarified. We need to improve our institutional efficiency. That is the bottom line.
This is how we can optimize and maximize the outcomes of this cooperation. Otherwise, we will have only good speeches before the media, glamour, and nothing substantial that affects the lives of our people. We need to move beyond the glamour and formalities and start asking practical questions. What are the criteria for assessing these funds? What is the minimum people can expect? These are practical questions that need to be addressed.
This currency swap should be available to relevant stakeholders in trade between Nigeria and China, at least from the Nigerian side.
RD: Minister Tuggar, when he received Wang Yi, stated that the MOUs signed between both countries during the last FOCAC are at different stages of implementation. What is your reaction to this assertion?
OnunaiJu: First and foremost, these agreements are very important, especially for Nigeria, which is implementing tough economic reforms. We need all hands on deck, all resources mobilized, and we need to begin delivering quickly. People need to see the low-hanging fruits.
Reforms are not eternal; they are not forever, and they are not a mystery. They are designed to enhance efficiency in service delivery, production, and outcomes. That is the important aspect of reform.
Regarding your specific question, I would like to say, yes, it has been at various stages. Keep in mind that China provides funding and concessional loans, while Nigeria is expected to provide counterpart funding. Counterpart funding is a crucial aspect of Nigeria-China cooperation on infrastructure and other projects. Yes, China provides 85% of the funding, but in the past, we have faced challenges where counterpart funding has been slow or absent.
Have we addressed these challenges from our side? Are we providing counterpart funding promptly to ensure that projects can progress at an accelerated pace and move toward completion? Remember, most of the FOCAC outcomes are designed for three years; they have specific timelines.
In our case, we must always be prepared with what is necessary to advance the partnership. While I wouldn’t disagree with the Minister that these projects are at various stages of implementation, we need to identify the specific projects that are ongoing. We need to address the challenges related to these projects, their current stages, and the responsibilities of each party.
Remember, China-Nigeria cooperation, especially on the Belt and Road platform, is driven by what they call extensive consultation, joint contribution, and shared benefits. Joint contribution means we have a role to play. Are we fulfilling our part? If we have extensively consulted, are we jointly contributing? Are we delivering on our side of the joint contribution, particularly regarding counterpart funding? These are the specific questions we must address.
These questions are not merely a matter of effusive remarks; they are practical matters that must be brought to bear on joint efforts by Nigeria and China to continuously improve their cooperation.
The collaboration between the China Media Group (CMG) and the Nigeria Television Authority (NTA) has been ongoing. We are sharing a lot of content and also want to expand this cooperation. I feel the Chinese side must broaden this cooperation beyond state-centric circles.
NTA is a premier national television network, but there are also important communication frameworks that should be included. We should expand the scope of this cooperation to encompass other critical stakeholders in the field so that we can maximize the outcomes of this engagement.
For nuclear energy, if there is any country in desperate need of alternative energy, that country is Nigeria.
China is a clear leader in wind, solar, and hydro energy, and Nigeria has an abundance of these resources. We can leverage cooperation in this respect and achieve significant results.
However, let me remind you that there is no alternative to strategic national initiatives. Even if you have all the partnerships in the world, if you lack a comprehensive and sustainable strategic national initiative, then it will not make any impact. Even if you have a partnership with heaven, unless you develop a momentum-driven strategic initiative that adds momentum and drives it sustainably, your partner can do nothing.
Your partner can do nothing if you are not coming to the table with the same momentum and drive. This drive is not merely expressed; it is institutional. It requires capacity and structure. You must put your national destiny into gear to begin engaging with the specific outcomes of this initiative. Good words, wonderful remarks, and beautiful handshakes do not suffice.
TD: What should we expect from the relationship between both countries in 2025? What should the outlook be like?
OnunaiJu: The outlook is always bright, but the brightness of that outlook, if we want to translate it into tangible results, depends on the work we do. We must follow up; it is important.
Foreign Minister Wang Yi has come and gone. Beautiful words have been expressed, and many documents have been signed. Numerous partnership action plans have been outlined. However, these things in themselves do not translate into advantages. There are potential contributions to our national aggregate.
There are potentials, but potentials alone do not convert into advantages without relevant national capacity. We must drive our institutions towards competence and efficiency to transform outlined potentials into real national advantages.
We have a desperate need to enhance our national aggregate. Every partnership, especially the one between Nigeria and China, holds great potential—there is no doubt about that.
Even the staunchest China antagonist cannot deny that the Nigeria-China partnership has real potential to contribute to our national outcomes. However, the outcomes and benefits we reap will also depend on our readiness. This readiness is not just expressed or outlined; it also involves our capacity to engage these outcomes.
By and large, I see a great future. I see opportunities for the two countries to generate more tangible goals and returns. However, we must also position ourselves to address these opportunities. How did China grow? How did China develop? It built capacity. It prepared its young people, institutions, and processes to absorb and engage these outcomes. All of this translated into their national aggregate.
That is why today we speak of China’s national power and capacity. How did this country build such massive capacity in a short period? It is not by proclamation; it is not merely by stringing together good words. They get to work and turn their institutions into credible platforms to advance their national interests. This is what we need to do.
So going forward, for the year 2025, we have great things ahead of us. However, for Nigeria to benefit and to maximize the potential outcomes of China-Nigerian cooperation, we need to retool our institutions to deliver—deliver on time. Most of the outcomes of the FOCAC process have timelines; they are not indefinite.
Countries in Africa that are more prepared engage more optimally. That is the point. China has provided access to its vast market for basic agricultural products and light manufacturing from Africa.
Countries are taking advantage. South Africa is exporting spices. Zambia is exporting meat. Kenya is exporting mangoes, vegetables, and flowers. What are we doing? Are we mobilizing our sectors in soybeans? Are we mobilizing our farmers in soybeans to take advantage of the Chinese market, especially in light of a potential trade war between China and the United States? China will rely on Africa to satisfy its market needs for these products. Are we preparing? If China says, “We have access; we expect you to export to us,” but our farmers cannot access the market, how do we expect this to work?
We have more work to do at home. Now, the Chinese market will be more open and favorable to African products.
With Donald Trump likely to cause trade disruptions between China and the United States, China is looking to Africa.
How are we preparing to be the first port of call for soybeans and a range of products? Are we ready for this? This is the question we need to ask. We should move beyond the glamour of handshakes, photo ops, and good speeches. How much work are we doing? As a journalist, please take your time to find out. Talk to traders and ask them how many of them have access to the yuan to trade directly with China without going through the dollar. These are the issues we need to address. If we do this, it could help us appreciate the situation better.
TD: Thank you very much for your time.
Onunaiju: Thank you.
[END]
