Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun was on President Bola Tinubu’s delegation to the People’s Republic of China for a State visit and FOCAC 2024. He speaks on China’s renewed comprehensive mutual bilateral cooperation with Africa and Nigeria’s current efforts to stabilize the economy among other issues. Excerpts;
What is your impression about Nigeria’s outing at this year’s FOCAC?
What has happened is that President Bola Tinubu led four Governors, Kaduna, Kwara, Lagos, and Niger States as well as Senators and members of the Federal Executive Council (FEC), to accompany him first of all, to a State visit to the People’s Republic of China hosted by President Xi Jinping.
Secondly, there has been participation by that same contingent led by Mr. President to FOCAC 2024, which is the Forum on China-Africa Cooperation, which is all about a joint effort and mutual support and, encouragement for the development and improvement of the lives of the citizens of the continent of Africa with support from China. So, this is what I would say, has been a very successful engagement.
What is unique about the State visit?
First of all, the one-on-one bilateral discussions that the President has had with President Xi Jinping in which they discussed matters clearly of mutual interest particularly mutual cooperation on the global stage at the international fora such as the UN’s common views on the ascension of the continent’s of an African country to the UN Security Council and so forth.
But more important, was the discussion and witnessing of agreements and Memorandum of Understanding (MoU) signed on projects of key importance in the areas of railways, ports, petrol-chemicals, and so forth that mean investments in critical infrastructure and critical projects in Nigeria.
Continuing in that same vein, President Xi Jinping expressed his commitment at the FOCAC plenary session, when he opened it, he expressed commitment to global security, global development, and global civilization, so, going beyond the physical development to include cultural exchanges and things that lift the spirits of citizens and ensure that the citizens buy-in to the developmental efforts and story.
So, it was a very comprehensive engagement for Nigeria. Further agreements have been signed not just in the presence of Mr. President early in the State visit but right throughout the week’s engagement including gas, and methanol projects at Brass Island in Bayelsa State and so on. Lagos State signed an MoU with China Habor Engineering company as well as the Ministry of Finance Incorporated to put in place the green line plan of Lagos State which basically opens up light rail and rail transport for cargo as well as for passengers along the Leki axis thereby, providing very much needed improved logistics for evacuation and movement of goods and people.
What is important about that particular investment, or the style of that particular company is that it is the majority owner of the Leki Port. It is a foreign direct investment, that is, an equity investment, not so much pilling on more debts to be repaid later but an equity investment that not only creates jobs but helps to ensure performance, operational performance, profitable performance, and efficient performance of that facility as time goes by. In fact, the company in that Private Public Partnership (PPP), is talking of doubling the capacity of the Port and even more investment in that sector. So, that’s a critical yardstick and a critical example of what President Bola Ahmed Tinubu’s philosophy and economic strategy is all about. Stabilizing the Nigerian economy, creating an environment for investment, particularly by private investors, and nongovernment investors whether domestic or, foreign to encourage the growth of productivity, creation of jobs, growth of the economy, and course reducing poverty in the country, which China has done very well over recent decades.
Are there projections in terms of FDI volume?
President Xi Jinping was very specific. He talked about $140 million for investment to help with security and defense in African countries. He talked about another $140 million for the social sector and $50 billion in funding over three years in various sectors of the economies and the societies of the African continent. And of course, when we take it back home, the equity investments in particular, the FDI that we have mentioned before was $535million invested in Leki Port and the prospect is that that would be doubled as further investment is made. So, we are talking about concrete figures.
The President of the People’s Republic of China did lay out 10 items, and initiatives that he is seeking to launch and implement over the next three years in particular, and that range from defense, infrastructure, education, training, and cultural exchanges. Really, a whole of society approach to development is the way I will characterize what President Xi Jinping laid before the African continent as a way of mutual cooperation to mutual benefits to modernizing the economies of the African continent, as China despite all its advances still regards itself as a South country, a developing country and maybe, when you do look at the Gross Domestic Product, the GDP per capita figure is still relatively low compare to some of the even countries in Asia, Korea, and South Korea.
However, it has made giant strides and it is joining hands with the leadership of the African continent to try and help our countries emulate what has been achieved by way of modernization in China.
