China’s Aid and Oil-for-Infrastructure in Nigeria: Resource-Driven or Development Motive?

Abstract

China’s ascent influences the Western aid dynamic significantly and changes the landscape in aid-donor and aid-recipient relationship for resource-endowed countries in Africa. Similarly, within China-Africa relations, Nigeria established diplomatic relations with China in 2006 for a concessional oil-for-infrastructure plan to fill the development aperture. However, Nigeria opted out as political uncertainty and elite interest in rent-seeking supersedes development and well-being motive. We conclude that two interrelated causal factors – accountability and transparency – overwhelmingly obstruct Nigeria from optimising China interest in infrastructure development. The study recommends the review of National Planning Commission (NPC) 2007 ODA policy document on technical assistance, grants, and concessional loans to identify new problems and challenges associated with formulation and implementation of donor-assisted programmes.

Keywords

• foreign aid
• oil-for-infrastructure
• development motive
• resource-driven