IMPACT OF FOREIGN DIRECT INVESTMENT ON CHINA'S BELT AND ROAD INITIATIVE OF GOING GLOBAL IN NIGERIA

Abstract

This paper examines the impact of foreign direct investment of China's Belt and Road Initiative in Nigeria. The objective of the paper is to investigate the sectors that Chinese investments have been more impactful and the challenges encountered. The study used qualitative descriptive method and relies on secondary sources of data. The data was analyzed using content analysis and documentary sources. The paper adopted the interdependence theory as theoretical framework of analysis. The findings of the study reveal that Chinese FDI have been used in manufacturing, trade, and oil and gas sector. The findings have shown that Belt and Road Initiative (BRI) has helped the Nigerian Railway reconstruction with Chinese capital and technology. While the challenges have been the inconsistencies in foreign policies of Nigeria, disproportionate investments in oil and gas, increasing level debt, and shortage of technical skills among others. The paper concludes that Chinese FDI and BRI have boosted economic and diplomatic relations in Chinese favour and quest for resources from Nigeria. It is recommended that Nigeria diversify its economy and redefine bilateral relations for mutual gains with China.