….Warns Neighbours May Beat Us to It
The Emir of Kano, His Highness Muhammad Sanusi II, has urged Nigeria to strategically leverage its 55 year old diplomatic ties with China to attract industrial investment, warning that neighbouring countries could seize opportunities Nigeria has yet to tap.
Speaking at the 55th anniversary of Nigeria China diplomatic relations, Sanusi said Nigeria must act decisively to attract production facilities, create jobs, and boost local manufacturing.
“If we do not move, these our younger brothers will get there ahead of us,” he cautioned.
Sanusi reflected on the historical depth of Nigeria China relations, recalling his father’s tenure as Nigeria’s first ambassador to China. He also highlighted China’s transformation over the years.
“China has been facing thousands of years, 200 years… It tells you how far a nation has come in five decades,” he said.
Sanusi said Nigeria must take advantage of industries moving out of China, warning that countries like Ghana and Benin could become production bases for Nigeria’s market if Nigeria fails to act.
He said, “Now today, wages in China are about $500, $600 an hour. These low value industries in China are getting out of it, and they’re exporting these low value industries, taking them out of China. The Chinese are moving to high tech, producing computers, chips, and electronics. We’re moving the whole textile production to places like Madagascar. We’re seeing coffee and leather works in places like Addis Ababa. There is a whole leather industrial estate outside Addis Ababa, where the Philippines is exporting to.
“Because now the Chinese are producing high quality shoes and bags for the best European brands in Addis Ababa, and the value there is going to the Philippines.
“We need to think strategically about our mission in China, and sit with them and say, how do we move these production facilities from the mainland to Nigeria? With the African potential free trade agreement, if we are not here, what’s the country going to do?
“The Chinese will come and set up factories in Cotonou, in Accra, and they’re producing, if not for the markets in Benin, which is very small, but for Nigeria. So the Republic of Benin, the Republic of Ghana, will have all the value added, will have all the employment, the income, the taxes, and will continue to be the consumers.
“We need to make sure, since we are the biggest market for African potential free trade agreements, we need to make sure that we have the hub for manufacturing and production.
“So we produce in Nigeria, sell in Nigeria, and export to West Africa, rather than remain here with our youth unemployed, with our manufacturing sector borrowed, while we continue to consume goods that we used to import from China but we’re now importing from Accra and Cotonou. This is a message that I hope the government will think about seriously as we talk about economic policy.”
