Due to globalization, the great diversity that prevails requires more innovative concepts of businesses, Foreign Direct Investments (FDI), and ventures that consider economic and environmental aspects of sustainable development that facilitate the growth of communities, towns, cities, and countries at large. As such, for a country like Nigeria to attain sustainability and significantly achieve the 17nr. Sustainable development goals (SDGs): Complete diversification of the economy is needed through adequate infrastructure, planned and executed without harming the environment. In China, African countries like Nigeria found a partner whose FDI is directed towards infrastructural projects that is adequately financed between China (Financier) and Nigeria (Host). These affirm that Nigeria needs Chinese financing for its projects to achieve its SDGs while China needs resources from Nigeria for its manufacturing. However, despite these mutualisms, sustainable funding agreements for developments, it is impacted by factors that hinder or promote such arrangements. Hence, this study examined the role of Chinese FDI in infrastructures across various sectors that enable achieving SDGs in Nigeria. Desk research concept was adopted as the sole research method by reviewing secondary sources of data from existing and publicly available data, which enable identification of projects by sectors that Chinese finances are playing a development role in Nigeria. The results show that Chinese FDI in development projects in countries like Nigeria enable Chinese companies to function properly on one hand, while Nigeria benefits from projects that drive growth and sustainable development that rhymes with its SDGs.
This study investigates the effectiveness of foreign direct investment (FDI) by Chinese enterprises in Africa and how the natural resources of the continent influence this effectiveness. It assesses foreign direct investment (FDI) effectiveness in 40 African nations between 2006 and 2022 using a Data Envelopment Analysis (DEA) model and Tobit regression, also examining differences according to income categories. The average technical efficiency (TE) of Chinese enterprises foreign direct investment (FDI) remained low to medium, according to the research, with a slight improvement from 0.459 in 2006 to 0.471 in 2022. Fewer nations did, however, reach complete efficiency, which reflects the mounting difficulties in resource optimization. Pure technical efficiency (PTE) decreased, indicating persistent problems with resource management and governance, whereas scale technical efficiency (SE) greatly increased. While low-income countries demonstrated slow pure technical efficiency improvements as a result of learning and adaptation, upper-middle-income countries continuously outperformed others. Resource dependency and “resource curse” ideas are supported by Tobit regression results, which show that natural resources had a negative influence on technical efficiency and pure technical efficiency in 2022 but no discernible effect on efficiency in 2006. While trade openness appeared as a critical factor in boosting pure technical efficiency, Gross Domestic Product (GDP) had a good impact on efficiency in 2006 but had lost relevance by 2022. These findings give businesses, host countries, and governments practical advice on how to improve foreign direct investment (FDI) efficiency through sustainable investment strategies, economic diversification, and governance reforms.