As a poor country, Nigeria is heavily dependent on FDI. Over the years it has become obvious that foreign direct investments are a positive contribution to economic growth and development in developing countries. Nigeria enjoys one of its closest relationships with China as both countries have economic complementarities; China needs crude oil whereas Nigeria needs FDI. Since 2011, Nigeria has been heavily plagued by political instability, primarily due to Boko Haram. Previously, the security issue in Africa has not been of great concern to China, however, through the instability Chinese nationals and investments have come under threat and many Chinese nationals have been killed and kidnapped for ransom. By gathering secondary sources I aim to analyze how China can help Nigeria make their society more stable and, thus, attract more FDI, and at the same time keep Chinese interests safe. Due to China’s already large presence in Nigeria, it can play a huge role in its peace and security. China is in a position to facilitate both Nigeria and the African Union (AU) in order to reach policies that will ensure stability to the Nigerian society, and at the same time keep Chinese personnel and investments safe. China’s non-interference policy could hinder China from engaging in Nigeria, but with the help of Realism and Liberalism I have tried to determine what China would do. I specifically chose these two theories as they have opposing views on the world of politics. Although both theories were present in the analysis, I believe that China has more liberal tendencies than realism tendencies. I, thus, state that there is a high possibility that China might eventually interfere in Nigeria, even though it might not be militarily, there are several other diplomatic options that China could pursue.