China and Nigeria have extensive economic links covering a broad range of sectors from construction and retailing to manufacturing and oil production. Indeed, the impact of China is easily discernible in many aspects of Nigeria’s socio-economic life. But although this relationship has been mutually beneficial, with both sides looking for ways of strengthening it, there have also been considerable hiccups. To a large extent, the difficulties in the relationship have been due to the terms of the contracts drawn up between the two countries and the character of the business and political environment in Nigeria. Indeed, China has been involved in some of Nigeria’s most controversial bilateral agreements, including the steel projects in Ajaokuta and Aladja, the national railway project, and the oil-drilling project in the Niger Delta. Of all these links, however, the one that seems most extensive and most potentially difficult is that of oil exploration.
