BNET Nigeria News Update June 2017 “Now, we have to collaborate with you, and we will keep HIGHLIGHTS our side of the bargain in all the agreements we have signed,” Buhari was quoted to have said in a statement by his Special Adviser on Media and Publicity, Mr Femi China plans fresh $40 billion Adesina. round of investments in The president had visited China in April, last year, as guest of President Xi Jinping, and the two countries signed Nigeria memoranda of understanding on projects, running into billions of dollars. At the press briefing with his Nigerian counterpart, the Chinese Foreign Minister said the purpose of his visit to Nigeria was to implement the important agreement and cooperation reached between the Chinese and Nigerian January 2017 presidents and at the same time work closely with Nigeria to ensure that the outcome of the FOCAC summit are well The Chinese Foreign Affairs Minister, Wang Yi, has implemented here in Nigeria. disclosed plans by the Chinese government to invest up to “In order to achieve further development and prosperity $40 billion in Nigeria as part of efforts aimed at deepening of the two countries, we need to strengthen our political relations between the two countries. mutual trust, deepen complementarily between our The amount, which was announced by the minister during developments, further expand practical cooperation and a joint briefing with his Nigerian counterpart yesterday in deepen our strategic partnership,” he said. Abuja was in addition to other contributions China had He described Nigeria and China as strategic partners made to Nigeria to support her developmental activities. whose relations he noted had developed well. He, He said his country had invested about $45b in various however, said when compared with the size, population projects in Nigeria and is at the verge of releasing another and markets of the two countries, their cooperation had $40b. large potential to be deepened. “China has already invested or financed a total number of The foreign minister said he was confident his visit would $22billion projects here in Nigeria, another $23billion be successful in further strengthening the strategic projects are on-going. In addition, we are also following up partnership between China and Nigeria. another over $40billion of investments, which are in the Earlier, Nigeria’s Foreign Affairs Minister, Mr. Geoffrey pipeline,” Yi said. Onyeama, commended the Chinese government for her The Chinese foreign minister had met earlier in the day solidarity with Nigeria and Africa. with President Muhammadu Buhari at the Presidential He said the relationship between Nigeria and China was Villa, where the president pledged that Nigeria would one that was very strong and had been going on for many honour all agreements signed with the People’s Republic years. of China. While commending the Chinese government officicials for “This administration is very serious about infrastructural their yearly visit to African countries with a view to development. We want rail, road, power, skill acquisition discussing substantive issues of development, he stressed for our people. We ought to have developed beyond this that the visits were unique because they helped to display point, but we neglected infrastructure when we had the and show solidarity of the Peoples Republic with Africa. resources. 1 Onyeama said: “You know of course that the Peoples made by the Chinese government to realize national Republic of China has been meeting regularly with Africa unification”. and the forum for discussing technical cooperation with African countries, the acronym is FOCAC. On her part the Government of the People’s Republic of China while appreciating the gesture of Nigeria over the “The last one took place in South Africa last December and Taiwan issue reaffirmed her commitment to actively the government of China made available a total of $60b develop China-Nigeria strategic partnership across board. for Africa and a number of countries, including Nigeria are in discussions to see how much of that could be used to Speaking to journalists after the statement, Onyeama assist in the various projects that we have in this country. stated that the federal government took the decision to remove any iota of doubt in the minds of the Chinese He said aside the FOCAC issue, China had, so far, invested people about Nigeria’s commitment to the unity of China. between $60b and $80b in Nigeria, adding that President He said: “On the issue of building trust, the international Muhammadu Buhari’s visit to china last year had further community has embraced one China and China is a opened up more areas of cooperation. member of the United Nations and we don’t want to leave “In area of infrastructure, which is one of the priority areas any doubt on the issue,” adding: “We adhere to it in the diversification programme of this government from completely and there is no ambiguity at all.” oil to agriculture and infrastructure, the Chinese He said Nigeria as a nation would do everything to realize government has been showing a lot of cooperation with the one China policy as well as any effort that would us,” the minister said. promote the peace and well-being of the People’s He identified transportation as one area the Chinese Republic of China. government had been very helpful to Nigeria. According to Onyeama, China is one of the countries that Meanwhile, Nigeria has withdrawn its recognition for has been in full support of reforms in the UN that would Taiwan, pledging her support for one China in a move see Africa having two seats at the UN Security Council, considered as part of efforts at strengthening its relations saying it deserved to be supported in her unification drive. with China. Similarly, Yi, while noting that the gesture would enhance Nigeria is, therefore, to withdraw all diplomatic relations the bilateral ties between the two countries, said China with Taiwan as a country, as well as withdraw would not only respect the one Nigeria policy but would accreditation from Taiwan’s nationals. In addition, the do everything to support the one Nigeria dream. Taiwanese office in Abuja would be shut, while it would be allowed to relocate to Lagos as a trade mission with He pledged the support of China in helping Nigeria overcome her security challenges as well as supporting the skeletal staff. administration’s efforts at diversification of the economy, This position, which was contained in a joint statement by particularly in the area of agriculture and infrastructure. the Ministers of Foreign Affairs of both Nigeria and China in Abuja yesterday, also saw the governments of the two countries reaffirming their mutual respect for the Central Bank of Nigeria injects sovereignty and territorial integrity of each other. $418 million to oil marketers Nigeria, in the statement reaffirmed that the “One China” policy was at the core of its strategic partnership with and others china. It said: “The Government of the Federal Republic of Nigeria recognizes that there is only one China in the world; that the Government of the People’s Republic of China is the sole legal government representing the whole of China, and that Taiwan is an inalienable part of China’s April 2017 territory. “The Government of the Federal Republic of Nigeria In line with its avowed determination to ensure ample reiterates not to have any official relations or engage in supply of foreign exchange (FX) in the market, the Central any official contacts with Taiwan, and supports all efforts Bank of Nigeria (CBN) last Friday auctioned US$418 million 2 through retail-Special Secondary Market Intervention Sales Monday in Lagos, to decide on ways to force down dollar (SMIS), at a marginal rate of N310/$. rates differential and narrow the gaps between official and parallel market rates. The Acting Director, Corporate Communications, CBN, Mr. Isaac Okoroafor, in a statement on Sunday, said The emergency meeting became exigent following last petroleum, airlines, agriculture and raw week’s sudden depreciation of the naira against dollar, materials/machineries sub sectors benefitted from the which the operators said is against the interest of their auction. operations and economy. The auction was in addition to the US$350 million sold as According to a statement on Sunday, the President, wholesale auction, Business Travel Allowance/Personal Association of Bureaux De Change Operators of Nigeria Travel Allowance (BTA/PTA) and school fees last week. (ABCON) Aminu Gwadabe said the meeting with the theme: ‘Role of BDCs in Price Stability- Realities and This is expected to strengthen the naira exchange rate in Compliance’ will be used to warn erring BDC directors on the coming days. the consequence of violating operating guidelines. The naira closed at N405 to the dollar on the parallel He said the BDCs would continue to support CBN’s market last Friday. exchange rate stability objectives and also ensure that “In the weeks ahead, the CBN will sustain its intervention official and parallel market rates convergence is achieved. through the sale of foreign exchange to all segments of the “We want BDC Directors to know the gains of price market i.e. PTA/BTA, Wholesale SMIS, Retail SMIS and the stability, rate harmonisation and regulatory compliance. BDC. The Bank will sell short tenured forwards of 7-30-day Operators with infractions will face penalties. We did it in maturity to meet demand of manufacturers and all other 2006 when the BDC window was first opened. We helped foreign exchange users,” Okoroafor said. the CBN to narrow the huge gap between official and He added: “These significant and consistent injection of parallel market rates. We are ready to do it again,” he said. foreign exchange into the market should reassure all Gwadade said the BDCs helped the CBN to narrow the foreign exchange users of our determination to continue exchange rate gap from N520 to present rate, and will to meet all legitimate FX demand in the market while continue to achieve better results as the CBN continues to striving to achieve exchange rate stability in the market.” fund BDCs with increased dollar allocations.