Abstract
The study covers the period 1997-2007. The main objective is to analyze the economic relations between China and Nigeria in the area of foreign direct investment (FDI). Attempts to compromise the benefits of FDI should be persistently resisted by the Nigerian Government through active engagement and negotiation with the Chinese government and investors. Second, good governance and a stable macroeconomic environment in Nigeria is a necessary to promote productivity and sustainability of investment. Three, Nigerian Government needs to institute policies aimed at maximizing the direct and indirect benefits as well as in minimizing the possible negative impacts. Furthermore, there is need to ensure implementation of laws and regulations in Nigeria and to ensure compliance by the Chinese investors. Such laws include labour law, social responsibility law and local content requirement
