According to an article from BBC News on May 14th, Nigeria's state-run oil company NNPC and the China State Construction Engineering Corporation (CSCEC) have signed a multi-billion dollar agreement. The total deal, valued at 23 billion dollars, encompasses plans to construct three oil refineries and a fuel complex in Nigeria. Upon completion, the project is predicted to raise the country's refining capacity by 750,000 barrels per day. Although Nigeria is the 12th-largest oil producer and the eighth-largest oil exporter in the world, it relies on imports for 85 percent of its fuel. The primary factor of this is the dilapidated state of the state-run industries. These refineries will hopefully limit the flood of foreign oil into Nigeria, and simultaneously "deepen [its] relationship" with China. The Nigerian government has continually pushed for foreign companies to invest in the developing of Nigeria's infrastructure before they reap the benefits of the nation's bountiful oil reserves, and this deal might persuade other countries to follow China's lead.
Nigeria's new deal with China exemplifies the growing globalization of the nation. Though agreements with foreign countries can be beneficial, they can also foster complications that bind one nation to another. Nigeria must be wary when forming deals involving its largest commodity, for it is possible that China will forgo its pledged developmental aid and instead secure Nigeria's status of a rentier state. However, if China does help the dilapidated state-run industries, it's possible that Nigeria will be able to become more self reliant. If other countries follow China's lead, Nigeria's sovereignty could be substantially increased, consequently leading to a government with a high degree of legitimacy.
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Photo Credit: BBC News
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