This thesis is aimed at analyzing why China’s FDI is important to Nigeria’s development and how we can look at the relationship from a world-system theory point of view. Furthermore, I aim to analyze what how China stands to gain from Nigeria’s political instability.
Throughout the years, China and Nigeria have forged a close economic relationship. However, debates have arisen which are derived in the issue that Nigeria has become dependent on China and the large amount of FDI it provides.
The results of this thesis show that China’s FDI is crucial for Nigeria’s continued development because over the years, Nigeria has become dependent on China. Furthermore, Nigeria is in need of what Chinese FDI can provide Nigeria with which is infrastructure and skills; two components which are vital for a country’s development. From a world-system theory viewpoint we can look upon the relationship as China exploiting Nigeria to further its own interests, power and influence in the world. In addition, China can find multiple opportunities to benefit from Nigeria’s political instability.