Nigeria, China Bilateral Trade Grows 40% Monthly After Zero-Tariff Policy

The consul-general of the People’s Republic of China in Lagos, Ms Yan Yuqing, has affirmed the gains of the zero-tariff policy of China by saying that Nigeria and China’s bilateral trade grew by 40 per cent monthly following the introduction of the zero-tariff policy in May.

She made this known yesterday in Lagos during the seminar on China’s zero-tariff on 100 per cent of tariff lines for African countries and its implications for structural economic transformation in Africa, highlighting the policy’s gains and noting that Nigeria’s export trade has performed better.

“Total bilateral trade reached US$18 billion in the first half of this year, up 35% year-on-year, while China’s imports from Nigeria surged 80% to US$2.3 billion, with monthly growth exceeding 40% in both May and June,” she said.

The consul general noted that Nigeria is China’s largest project contracting market and the second-largest export market in Africa.

“It is also a key destination for Chinese investment and the second largest trading partner for China on the continent,” she said.

She stated that Nigeria has exported a single shipment of 23,000 tonnes of liquefied protein, resulting in US$300,000 in tax savings.

She stressed that the policy will further expand our profit transition and accelerate the entry of African products into the Chinese market, injecting fresh vitality into China-Africa economic and trade cooperation.‎

‎”At the same time, China will upgrade a range of supporting measures, including establishing green channels for African exports to China, opening commodity expansion and sales platforms, and promoting cross-border e-commerce. These efforts will further streamline information flows, reduce trade costs, enable precise matching of supply and demand, and fully unlock the policy dividends,” she said.

‎The Director-General of the Nigerian Institute of International Affairs, Prof. Eghosa Osaghae, urged strong regional integration to maximise the policy’s impact.

‎”Within the context of the African Continental Free Trade Area Framework, this is the way to go. We must pull together, and that’s a challenge for us as Africans. Otherwise, as has always been feared, the countries that would benefit most from this would be countries like South Africa and Nigeria, which have long been economic giants.

‎”I think that if we are going to be equitable in the benefits that would accrue from the zero tariff treatment, we must go regional.

‎”We must see how we can pull those resources and harness the markets. Infrastructural deficits can be overcome, and those deficits of trade facilitation that have made it impossible for very low and weak economies to benefit from this, so that we can overcome that,” he said.