This document summarizes China's increasing engagement in Nigeria's oil industry. It discusses China's growing need for oil to fuel its economic growth and its "Oil for Infrastructure" policy of providing development projects in exchange for oil contracts. While this has brought some benefits like new infrastructure, there are also concerns that China is exploiting Nigeria's oil and not supporting local businesses enough. The relationship is complex, with both opportunities and challenges around ensuring sustainable growth and maximizing long-term benefits for Nigerian citizens.

1. China into Africa
T
Engagement in the Oil Industry in
Nigeria

2. What is the project about?
• The Sino-Nigerian business relations
• Why China invests in the oil production in
Nigeria
• Reflecting on the secondary data collected
from various sources

3. Aim
• To explore China`s engagement with the
Nigerian oil sector

4. Objectives
• To explore whether China is exploiting the
Nigerian oil sector
• To analyse the effectiveness of the “Oil for
Infrastructure” policy
• To explore the impacts of China has had on
Local community

5. Nigeria`s Paradox
• Vast oil reserves and export revenues but
widespread poverty, lack of development and
degradation
• Politically unstable country
• Corruption & Mismanagement
• Guerrilla wars
• However…

6. Why China invests in Nigeria
• Economic Growth in China 9% per annum
• No longer able to supply the consumption
requirements
• Gaining economical and political power in the
world
• China`s 2003 National Energy Strategy and Policy
remarked: “oil is the key factor in the creation of
public wealth, and also one kind of most important
commodity influencing the global political pattern,
economic order and military operations”

7. • China`s oil consumption has increased by 374.3%
since 1980, compared to only 12.3% increase in
USA and 35.1% in the rest of the world

8. China`s oil Projected Consumption

9. “Oil for Infrastructure” policy
• A policy introduced by president Obasanjo
elected in 1999
• Project and services in return for natural
resources
• An Opportunity to gain Highly profitable
contracts at low cost
• An Opportunity to bring in knowledge and
gain influence in Nigeria and Africa as a whole
• But...

10. Methodology
• Use of secondary data
• Online Articles and Statistics
• Recent Comments on the Business
Environment in Nigeria from scholars and
researchers

11. Management Theory Applied
• Social Corporate Responsibility
• PESTLE analysis
• Competitive Advantage
• Globalisation

12. China`s behaviour
• Care little about the interior policies
• Little evidence of increasing support to local
businesses
• Just to gain power and profits
• Rotberg (2008) : “China is extractive and
exploitive, while simultaneously wanting
friends and seeking to improve the Sino-
African ties”

13. Critical Analysis on the findings
• Impacts on the local community
– Built schools, railways (1,315km Lagos-Kano),
roads , revitalised oil refineries (Kaduna), built a
power station (Mambilla)
• Diversifying the energy sources is a critical
element to spread the risk
• Lack of skilled workers

14. Conclusive Summary
• Nigeria has not fully capitalised on the
potential benefits
• Far more needs to be done to expand policy
creation, institution building, human capital,
entrepreneurship, and the culture and
leadership capabilities to maximise gains
• More harm to Nigerian citizens

15. Summary (cont.)
• A growth driver framework needs to be
discussed
• Sustainable growth NEEDS to be maintained
• Lack of leadership among the Nigeria`s
business leaders
• Learning from the Chinese business models
• LEADERSHIP a key challenge

16. References
• Rotberg R., 2008. China into Africa: Trade, Aid,
and Influence. Brookings Institution Press.
Washington DC
• Levy-Livemore, A. 1998. Handbook on the
Globalization of the World Economy. 1st ed.
Edward Elgar Publishing Limited. Cheltenham
• Peel, M. 2009. A Swamp Full of Dollars. 1st ed.
I.B.Tauris & Co Ltd. London
• Utomi, P. 1998. Managing Uncertainty:
Competition and Strategy in Emerging Economies.
Spectrum Books. Ibadan

17. Thank You