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China–Nigeria Trade Surges Past $22bn as Strategic Partnership Enters a New Phase

E-hailing drivers’ association decry double VAT deductions on inDrive members VAT By Stellamaris Ashinze Lagos, Jan. 7, 2025 (NAN) The umbrella union for e-hailing drivers, Amalgamated Union of App-Based Transporters of Nigeria (AUATON) on Thursday decried double VAT deductions on the trip fares of one of its members, inDrive. The Vice-President, AUATON, South West, Mr Kolawole Aina, told the News Agency of Nigeria (NAN) in Lagos that inDrive e-hailing drivers suddenly discovered this double taxation on Jan. 1, 2026. Aina said that one of the VAT was termed service payment VAT on their invoices, while the other was simply termed VAT. “Our inDrive members were ushered into the New Year 2026 with what we can only term an excessive tax burden following a new deduction regime. “The policy has pushed total commission and tax deductions on the inDrive drivers’ platform from the initial 9.99 per cent to about 12.5 per cent per ride. “We do not know who inspired the taxes but since VAT are usually charged and collected by government, we can only suspect that the tax was imposed by either the Lagos State Government or the Federal Government in collaboration with the app company,” he said. He decried the situation were app companies and government arrived at decisions in their meetings and do not communicate those decisions to the drivers who are affected. The AUATON executive noted that meetings between app companies and government should also include the representatives of drivers. “This double taxation is a burden. They have put burdens on us. We have been complaining that our earnings are not enough but now we are being charged additional expenses. “To our knowledge, this tax does not affect other categories of transport operators such as the flag-down taxis, park-based drivers and other transporters. “We have tried and are still trying to get the inDrive app company to explain what is happening to us but to no avail. “The company is not responding to calls or messages, maybe they have changed their contact phone numbers. They also have an email policy that responds to enquiries by individuals alone, which is against our association’s policy,” Aina said. He said that the way the tax was being charged, if a driver does not pay the double tax on a trip, he or she would be unable to pick the next ride. The AUATON executive urged the app company to communicate and explain the new deduction regime to its drivers. He also appealed to the federal government to include its members in its policies, emphasising, specifically, the CNG conversion for transporters.

Nigeria’s economic engagement with China is entering a more assertive and consequential phase, as bilateral trade volumes crossed $22.3 billion in the first ten months of 2025—an inflection point that signals both deepening interdependence and shifting global economic alignments.

The latest figures underscore a 30.2 per cent year-on-year expansion, placing Nigeria firmly among China’s most strategic trade and investment partners on the African continent. More significantly, the surge reflects a transition from transactional commerce to a broader geo-economic partnership anchored on infrastructure, industrial capacity, logistics efficiency, and market access.

Trade Momentum Meets Strategic Depth

Beyond headline numbers, the China–Nigeria trade story is increasingly about structure, scale, and strategic intent. Nigeria’s elevation as Guest Country of Honour at major China-Africa trade platforms in 2025 was not ceremonial; it was a recognition of Nigeria’s growing relevance in China’s Africa-focused industrial and supply-chain recalibration.

Agricultural exports such as cashew, sesame, sorghum, and dried ginger have gained improved access to the Chinese market, reinforcing Nigeria’s ambition to diversify export earnings beyond hydrocarbons while integrating deeper into Asian consumption value chains.

Industrial Platforms Driving Real Economy Gains

Two industrial corridors—the Lekki Free Trade Zone and the Ogun–Guangdong Free Trade Zone—continue to anchor manufacturing collaboration, technology transfer, and industrial clustering. These platforms are increasingly aligned with Nigeria’s domestic industrialisation goals, not merely as export enclaves but as job-creating, skills-deepening ecosystems.

A defining asset in this evolving relationship is the Lekki Deep Sea Port, which is fast reshaping West Africa’s maritime logistics map. With projected annual throughput capacity exceeding 520,000 TEUs, the port has recorded explosive growth, strengthening Nigeria’s position as a regional trans-shipment and trade gateway.

Rail-linked mobility infrastructure—most notably the Lagos–Ibadan rail corridor and urban light rail systems—has further amplified productivity gains by reducing congestion costs, improving passenger movement, and supporting inland trade connectivity.

Development, Not Dependency

Contrary to simplistic narratives of dependency, the current phase of China–Nigeria engagement reflects development-oriented pragmatism. Infrastructure delivery, agricultural modernisation, digital economy cooperation, and manufacturing investment are producing measurable economic spillovers—employment, capacity building, and improved logistics efficiency.

Crucially, the relationship is evolving within Nigeria’s own reform context, where market-driven growth, regulatory clarity, and private-sector participation are increasingly shaping project outcomes.

Geopolitics at the Margins—but Not Absent

While economic cooperation dominated the discourse, broader geopolitical currents remain present. Beijing’s reaffirmation of the One-China principle and its objections to external military signalling in East Asia highlight how global power dynamics continue to intersect with trade diplomacy.

For Nigeria, however, the strategic calculus remains clear: economic sovereignty through diversified partnerships, not ideological alignment. The priority is trade, investment, infrastructure, and technology—delivered at scale and with measurable domestic impact.

2026: A Symbolic and Strategic Milestone

As 2026 approaches—marking 55 years of China–Nigeria diplomatic relations and 70 years of China–Africa engagement—both countries are positioning for deeper collaboration in new energy, digital infrastructure, advanced manufacturing, and cultural exchange.

For Nigeria, the opportunity lies in converting scale into leverage: using market size, logistics assets, and reform momentum to negotiate partnerships that accelerate industrial competitiveness and export sophistication.


BRANDECONOMY INSIGHT

China–Nigeria trade growth is no longer about volume alone—it is about economic architecture. If Nigeria continues to pair strategic infrastructure with export diversification and policy discipline, the relationship could evolve from a trade surplus headline into a long-term industrial transformation engine.


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