Capital Flight: China to Invest in IPP
- By Pearl Ngwama
- Published January 5th, 2010
- Economy
- Unrated
CHIEF Matthew Uwakwe, chief executive officer of Nigeria-China Business Council, has disclosed the intention of the council to boost the Nigerian economy by bringing in the Chinese to invest in Independent Power Project (IPP).
He revealed that Nigeria has continued to groan under the heavy effect of capital flight to China due to the imbalance in the business relationship between Nigeria and China, which has cost the country loss of about N7.8 billion to China annually. He revealed that in 2009, China had greater percentage of the trade with N7.8 billion while Nigeria had the deficit with a little above N500 million.
He said that China is not to be blamed for the imbalance but advised that Nigeria needs to wake up and tap into China which is the largest economy globally. However he assured that with the establishment of the council, the anomaly would be corrected and both Nigeria and China will develop a symbiotic business relationship.
Uwaekwe stressed that apart from balancing trade between the two countries, the establishment of companies in the country by Chinese would further create job opportunities for the teeming unemployed youths in the country in the nearest future. “The council is looking into avenues of streamlining the business activities between China and Nigeria to go beyond trading, but attracting investors, because Nigeria must have a lot to produce in order to export,” Uwakwe stated.
According to him the investment would be diversified because when investors come, interest rate of banks would drop and they (the banks) would be compelled to do the right thing. However he said the council is giving first concentration to energy because no industry can strive without a steady power supply.
In view of this he disclosed that the council been working investors from China to invest in IPP and already more than 10 Chinese companies have indicated interest. The council according to him at this stage is in deliberation with some states on how to kick off the project.
Uwakwe disclosed that so far the council is working out measures with Akwa Ibom, Ebonyi, Osun, Delta and Ekiti states. According to him Ekiti State has indicated need for 10 to 12 mega watts power, which can generate light for the entire State.
Speaking further, he disclosed that the unveiling of the council’s logo and signing of a Memorandum of Understanding (MoU) between Nigeria and China was a landmark achievement towards the development of the economy and the industrialisation of the country.
According to him, the ties had enabled Chinese businessmen to set up different businesses across the country, which includes an assembling plant for the provision of electricity transformers of all kinds in Oyo State by Chan Kihong.
Uwaekwe further disclosed that Chinese businessmen had carried out feasibility studies in Ekiti, Osun and Abia States with a view to establishing tricycle plants in the states. He explained that a very high standard of attracting investors into the country has been laid to streamline business relationship between the two countries and promote business excellence.
He revealed that Nigeria has continued to groan under the heavy effect of capital flight to China due to the imbalance in the business relationship between Nigeria and China, which has cost the country loss of about N7.8 billion to China annually. He revealed that in 2009, China had greater percentage of the trade with N7.8 billion while Nigeria had the deficit with a little above N500 million.
He said that China is not to be blamed for the imbalance but advised that Nigeria needs to wake up and tap into China which is the largest economy globally. However he assured that with the establishment of the council, the anomaly would be corrected and both Nigeria and China will develop a symbiotic business relationship.
Uwaekwe stressed that apart from balancing trade between the two countries, the establishment of companies in the country by Chinese would further create job opportunities for the teeming unemployed youths in the country in the nearest future. “The council is looking into avenues of streamlining the business activities between China and Nigeria to go beyond trading, but attracting investors, because Nigeria must have a lot to produce in order to export,” Uwakwe stated.
According to him the investment would be diversified because when investors come, interest rate of banks would drop and they (the banks) would be compelled to do the right thing. However he said the council is giving first concentration to energy because no industry can strive without a steady power supply.
In view of this he disclosed that the council been working investors from China to invest in IPP and already more than 10 Chinese companies have indicated interest. The council according to him at this stage is in deliberation with some states on how to kick off the project.
Uwakwe disclosed that so far the council is working out measures with Akwa Ibom, Ebonyi, Osun, Delta and Ekiti states. According to him Ekiti State has indicated need for 10 to 12 mega watts power, which can generate light for the entire State.
Speaking further, he disclosed that the unveiling of the council’s logo and signing of a Memorandum of Understanding (MoU) between Nigeria and China was a landmark achievement towards the development of the economy and the industrialisation of the country.
According to him, the ties had enabled Chinese businessmen to set up different businesses across the country, which includes an assembling plant for the provision of electricity transformers of all kinds in Oyo State by Chan Kihong.
Uwaekwe further disclosed that Chinese businessmen had carried out feasibility studies in Ekiti, Osun and Abia States with a view to establishing tricycle plants in the states. He explained that a very high standard of attracting investors into the country has been laid to streamline business relationship between the two countries and promote business excellence.
