Will China’s Zero-tariff Regime Inspire Nigeria to Build Factories, Create Jobs?

China’s recent decision to offer duty-free access to its market for 53 African countries has sparked discussions about whether Nigeria, Africa’s largest economy, can capitalize on this opportunity to forge a new economic path. At an international seminar in Abuja, Chinese diplomats and Nigerian officials debated how best to leverage the zero-tariff regime, focusing on turning preferential access into factories, jobs, technology, and value-added exports.

While there was agreement that China’s market presents a significant opportunity, divergent views emerged on how Nigeria should respond. Yu Dunhai, China’s ambassador to Nigeria, emphasized that China’s initiative is a major step in China-Africa relations and a catalyst for Africa’s economic transformation. However, he stressed that it is up to Africa to build the necessary productive capacity to supply China’s massive consumer market.

Nigeria’s response could hinge on whether it shifts from exporting raw materials to exporting value-added goods. Early data indicate a positive response from Nigeria, with bilateral trade with China surging by 35% in the first half of 2026 and Chinese imports from Nigeria rising by 80%. These figures suggest immediate savings for Nigerian exporters, particularly in commodities like sesame, cattle bone granules, and liquefied propane, where tariff removal translates into substantial cost reductions.

However, the real potential lies in how Nigerian businesses utilize these savings to expand processing capacity, improve product quality, and develop export capabilities. Yu urged Nigeria to pursue a formal Agreement on Economic Partnership for Shared Development with China, arguing that such an agreement could transform temporary tariff preferences into long-term economic guarantees.

He called for Nigeria to enhance product quality, strengthen supply chains, increase industrial differentiation, and integrate trade with investment. Nigerian SMEs, he suggested, should take advantage of major Chinese trade platforms to access Chinese buyers. The seminar underscored that while China’s market is open, Nigeria must actively transform that access into economic growth by moving from commodity exports to value-added exports.