CHINA’S OUTWARD INFRASTRUCTURE INVESTMENT IN AFRICA: A CASE STUDY OF NIGERIA’S RAILWAY CONSTRUCTION

Scholars and policymakers continue to debate the ramifications of Chinese foreign direct investment (FDI) and infrastructure development in Africa. Some argue that China’s activities in Africa create mutual economic opportunities, while others postulate that Chinese presence on the continent simply advances Chinese Communist Party (CCP) interests. More granular research into specific countries is crucial to better assess this debate. Using a qualitative methodology, this thesis examines the financing and construction of Nigeria’s railways by Chinese companies in the 21st century. More broadly, it evaluates the regional context of Sino-African economic cooperation on infrastructure development. Through a close analysis of press and official reports as well as a review of scholarly work, this study establishes the ways, means, and consequences of China’s investment in Africa. Chinese FDIs have helped to strengthen infrastructure, power generation, and resource extraction industries in many African countries, though not without costs such as huge debt burdens and disadvantageous trade imbalances. This study documents that Chinese financing and construction of Nigeria’s railway system has generated local revenue and employment and has facilitated technology transfer in the country, but the engagement benefits China even more because it expands the CCP’s economic influence and reinforces the Sino-Nigerian political connection.
Commander, Nigerian Navy
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