Transnational Trade and Emerging Nigerian Diaspora in Asia By Godwin O. Ikwuyatum Ph.D Department of Geography University of Ibadan Nigeria E-mail(s):
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[email protected] Phone: +234 802 333 7515 Abstract Trade in humans was a major driver of transnational trade from Nigeria to the Americas during the slave trade. The change from trade in humans to trade in consumer goods and services in the new millennium has altered the pattern of trade driven transnational mobilities from Nigeria and also led to the evolution of a Nigerian Diaspora in Asia. The study examined transnational traders from Nigeria, with particular focus on transnational traders from Lagos, and the consequent evolution of a Nigerian Diaspora in Asia. Four large markets across the city: Auto Spare Parts and Machinery Dealers Association Market (ASPAMDA); Alaba International Market dealing mainly in electronics; Ikeja Computer Village Market; and Balogun-Idumota Market were purposively selected for the survey. Using the different trading associations as the basis for sampling, a total of 728 traders across these four markets, of which 448 were transnational traders and 280 internal traders were interviewed. Over three-quarters of transnational traders went to Asia on their first trip; China emerged as the most popular destination, followed by the United Arab Emirates and then Japan; far fewer transnational traders move to Europe; transnational traders seemed to be older and better educated. The population of the Nigerian Diaspora is growing in destination countries; and Igbo traders dominate the population of transnational traders and also the population of Nigerian Diaspora in Guangzhou, one of the major trading towns in China. Key Words: Transnational Trade, Nigerian Diaspora, Asia
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1.0
Introduction
Transnational trade is an age long phenomenon globally. In the 18th and 19th Century, Nigeria was a major source of transnational migrants and of forced migrants, who were part of the dispersal of people of Africa descent through the Atlantic and Arab Slave Trades, which ended in the 19 th century. This human dispersal through slave trade represents one of the largest forced migration and transnational human mobility in human history, as over 12million people from Africa, Nigeria inclusive, were shipped to the Americas during the slave trade. Since the end of the slave trade, which propelled the largest transnational human mobility in human history ever, the 21st century is witnessing a change in the determinants and trajectories of trade driven transnational human mobility from Africa and from Nigeria in particular. Essentially due to Nigeria’s colonial heritage strong bilateral trade relationships were established with the United Kingdom (UK) and countries in central Europe in the greater part of the 20th century. This colonial heritage also influenced the trajectory of transnational human mobility from Nigeria, as the United Kingdom and countries in central Europe became major international destination for migrants of all categories from the country. Globalization and the opening up of the global economic space in the 21st century, has led to new trade relationships and trade destinations. The move to Asian destinations has been facilitated by transnational social network systems, in which the Nigerian Diaspora in Asian countries of China among others, have played significant roles. Today, Asian countries, in particular, the ‘the Asian Tigers’, is home to thousands of Nigeria Diaspora, though their exact population of the Nigerian Diaspora in Asian destinations remain within domain of estimation. The Nigeria Diaspora in Asia is made of people who essentially moved to Asia on the platform of trade with their Asia counterparts. It is based on the foregoing background that this paper examined trade driven transnational mobilities and the emerging Nigerian Diaspora in Asia in the new millennium. This is with particular focus on transnational mobilities of traders from Lagos Nigeria to Asian destination in the 21st century. 1.2
Research Questions
In examining trade driven international mobilities of traders and its nexus with the growth of the Nigeria Diaspora in Asia, a number of questions or puzzles remain unanswered. These questions are: Who are these transnational traders from Lagos Nigeria? How are transnational mobilities facilitated? What is the population and destination of the Nigeria Diaspora in Asia? What is the nexus between the Nigeria Diaspora and trader mobility to Asian countries? What factors influence the choice of destination by traders? The search for answers to these questions forms the basis for this study. 1.3
Literature Review and Conceptual Framework
Scholars (Bertoncello & Bredeloup 2007; Bodomo, 2007; ) have revealed the increasing trading activities of African traders with Asian sub-continent, with increasing effect of globalization and 2
decreasing factor of distance in human interactive process such as trade and commerce in the 21st century. There is increasing number of the African Diaspora in Southern Chinese cities of Hong Kong, Macau, and Guangzhou area of China, where it has been observed is home to the largest population concentration of Diaspora of African descent in China (Bertoncello & Bredeloup 2007 and Bodomo, 2007). The increasing population of the African Diaspora in the southern region of China has been attributed to the increasing volume of trade between African traders and their Chinese counterparts in the Guangzhou area of China and also due to its proximity to Hong Kong, which is an important export trade free zone. This has not only increased trade driven transnational mobilities from Africa but is causing the emergence of African Diaspora in the region. In his own submission, Li Zhigang et al (2009) is of the view that transnational trade activities of African traders in China is aimed at realizing economic opportunities that Asian markets of China, Hong Kong and Dubai among other countries provide, as their economic and commercial policies are very attractive and have comparative advantage over hitherto traditional African traders destinations in central Europe. Low cost and variety of merchandise on sale in most Asian destinations are also major attractions for transnational traders from African cities, such as, Lagos Nigeria, where the demand for imported foreign products is very high (Jaafar & Jaafar (2009). Bail (2009) classified transnational traders into two categories namely: merchants who are generally in the minority and stay within their visa period; and salesmen or traders who have no original business road map for moving to Asia, but are engaged in negotiating trade and business deals during their period of residency. Furthermore, Bail (2009) in his study noted that migrants tend to reconstruct the social and spatial structures of their host communities and there is often a silent rivalry between different categories of migrant traders, that is between veteran traders and migrants turned traders by circumstance. Though the population of the African Diaspora in China and other Asian countries, has significantly increased, it does not necessarily imply improved Sino-Africa relationship, as conflicts between Chinese host communities and the African Diaspora in several Chinese cities in recent times (Bodomo, 2009; and Li Zhigang et al, 2009). Such conflicts are often caused by draconian laws and largely the activities of corrupt law enforcement agents, in their relationship with African traders and African Diaspora in China. Language was cited by Bodomo (2009) as a major barrier in the conduct of trade by African traders in the process of business transactions. This is often overcome by ‘calculator communication’, sign language or gestures, and Basic English and Chinese language skills are employed to facilitate communication and trade. Visiting transnational traders employ the services of their national Diaspora, like the Nigerian Diaspora in Guangzhou to help facilitate their business and other trade related transactions. 1.4
The Concepts’ of Mobility and Migration
It is vital to differentiate the concepts of mobility and migration, as this is significant in the understanding of the basis for transnational human mobilities. Human mobility is the ability of people 3
to move easily from one place to another over time. Human migration, or simply put migration is also the movement of people from one place to another over time. The similarity of the two concepts is change in location over time. However, the differentiation comes up when the space and time dimensions of the change are defined. The differentiating factor is, therefore, variations in the distance of the move and duration of stay in the destination. The notable nature of migration is essentially the change in usual place of residence, which involves relocating from the usual place of residence to a new place of residence. This process can be identified with the emergence of the Nigerian Diaspora in Asian countries, as Nigerians, in particularly traders and business entrepreneurs have continued to relocate to commercial business cities such as Guangzhou in southern China. The period of stay in the new place of residence should be six months and above before such as movement can be identified as migration. Relocation of person traders inclusive within national boundaries, is internal migration; while mobility or relocation occur across national boundaries, is referred to as international migration. Trade driven transnational mobilities, such as the one under examination fall within the latter category of human mobility, and is essential for the study of transnational mobilities. ‘Mobility of Traders’ as a concept can be defined as the movement of traders from one place to another for the purpose of trading. There is the possibility trader mobility can gradually transform into a migration process, when the length of stay goes beyond six months and spills into permanent residence. This is the case with the emerging Nigerian Diaspora in Asian countries like China, Hong Kong and Taiwan among many others. In evaluating theories and models of migration and mobility, it can be observed that there is no unified theory or model for studying migration and mobility; however, there exist a legion of concepts, such as those of Zipf (1946); Stouffer (1960); Claeson (1969); Greenwood (1968); Sjaastad (1962); Gallaway (1967); Harris & Todaro (1970); Mabogunje (1972); Shaw (1978); Massey (1990); and Schoorl (1994) that try to abstract reality in order to generalize. Trade driven transnational mobility of traders signifies changes in the movement patterns of traders over space and time and of many of its determinants. The resultant decisions are the manifest spatial and temporal patterns, which further underline new processes. Drawing from the assumptions of the reviewed migration and mobility concepts and theories, and from the work of Afolayan et al (2011), in their study of the dynamics of the mobility of international traders, human mobility is conceptualized in Figure 1. Though a modified form of Shaw’s model (1978) the model in Figure 1 presents the complexity, in terms of factors, that influence migration/mobility decision-making. urbanization and globalization is introduced as new exogenous variables of importance in conceptualizing traders’ mobility and the three distinctive features of traders as intervening variables that assist the decision makers in evaluating exogenous factors; hence, the decision-making of the traders covers where to move to: first to the city, Lagos; then to any other place within or outside the country (Afolayan et al, 2011). Urbanization and globalization are processes that foster agglomeration of people in urban centres, while globalization significantly reduces the factor of distance in human mobilities and interactions such as international trade. In essence, urbanization and globalization heightens the traditional mobile nature of traders. The urban population can be said to be an urban energy with high demand for goods and services, which drives traders to embark on transnational mobilities, enhanced by globalization in 4
order to satisfy the needs of the urban space like Lagos. In other words, urbanization and globalization are most of the times exogenous enabling factors in the mobility of traders. In accord with Afolayan et al (2011) there are three distinctive enabling endogenous factors that drive transnational trader mobility. These are: i) effectiveness of trader mobility, which sets them apart from other movers or migrants. The mobility is purposive and tied to the profitability of such a movement ii) Trader transnational mobility can also be seen as an economic strategy, on which traders base their mobility behaviour. Traders in deciding their destination of choice, sometimes tie it to the need to survive in the trade and business, which they have accepted as their occupation. In so doing, the migration decision-making process, as to which destination the trader intends to move to, is premised on the urge to survive in the business and keep the business afloat, damning challenges they might encounter in the process of migration. iii) Traders decision to move can also be an individual decision, in which case the choice to move or migrate to any destination is in the first place, that of the individual or trader involved in the process of migration. This does not only influence the trajectory of movement but also the volume of the flow of traders. Individuality presents traders as capable individuals, who can take intelligent actions; protect their interests; expect and/or achieve a profitable venture. The individuality of traders is not premised on group action or regimented by a formal set-up, as traders could change or adjust their behaviour in the best way they think fit. The conceptualization of traders’ mobility as expressed in Figure 1 is to examine the evolution of transnational mobilities and the consequences on both ends of the process. Trader transnational mobilities are transforming into permanent residence in several destination regions and countries like China and other Asian countries.
Figure 1: Adopted from Afolayan, et al (2011) 5
1.5
Methodology
Four main markets known for trading in specialized imported goods in Lagos are Auto Spare Parts and Machinery Dealers Association (ASPAMDA), Computer Village in Ikeja, Alaba International Market, and Balogun-Idumota Market within the metropolis of Lagos State were purposive sampled to collect the necessary data. Thereafter a multi-stage stratified sampling technique was employed in selecting the traders. Both primary and secondary data sources were used for studying the traders. The secondary data were from archival documents on Lagos markets, traders and government’s activities in the markets, trading transactions and trading destinations. The primary data were sourced via the use of both quantitative (structured questionnaire forms) and qualitative (Focus Group Discussions (FGD) and InDepth Interviews (IDIs) with opinion leaders. The data collected were analyzed, using simple statistical techniques, of Analysis of Variance and Multiple Linear Regression 1.6
Research Findings and Discussion
1.6.1 Socio-Economic Characteristics of Traders Sex Composition of Traders There is the predominance of males (86.5%) in the entire sample population, and among the international (85.2%) and internal (88.6%) traders, as by Fig 2. In each of the cases, females form the remaining lower percentages.
Figure 2: Category of traders by sex
By implication, males are predominant in all the four markets. However, Computer Village and Balogun markets have noticeable percentages of female traders, of 13.8 and 31.1 per cent respectively. One main explanation for the gender-bias is the nature of goods traded in by the two sexes. ASPAMDA, Computer Village and Alaba markets, in which male traders form the highest majority, the goods traded are mostly sophisticated, technical goods, such as motor spare parts, computer and accessories and electrical appliances, as against Balogun market, where female traders form relatively 6
higher percentage, compared to other markets; but, where goods traded are mostly less complicated, technical goods, such as household utensils, clothing and foot wears. Another conceivable explanation is cultural restraint that underlines male predominance in long distance trading, compared to its lower occurrence among females. Age Composition of Traders Figure 3 show the mean age of the traders is 38.8 years. However, there are variations in the ages of international and internal traders. The latter is the older, 40.7 years old as against 38.8 years old internal traders. ANOVA statistic of ages of the two categories of traders shows significant difference in their ages, with F-value=66.41, df =1, at p>0.00 level of significance. The difference in age shows that it takes certain period of time for internal traders to change to international trading.
Figure 3: Average age by category of traders At the level of each market, the mean age varies significantly, as follows: 41.9, 38.7, 39.6 and 36.2 years respectively for ASPAMDA, Computer Village, Alaba and Balogun markets. The ANOVA test statistics depicts significant differences in ages of traders by market, with F-value=8.36, df = 3, at p>0.00 level of significance. The variations in the average age are indications of possibility of variation in the level of maturity needed for engaging in some of the items of trade noted for the four markets. Marital Status by Category of Traders and Market The study showed that over four-fifths of international traders (84.9%) are married, as against twothirds of internal traders (67.8%). The proportion of singles among international traders is, therefore, lower than it is among internal traders, 15.1 per cent as against 32.2 per cent respectively. The same applies in all the markets. Figure 4 show more than three-quarters of the traders (78.3%) are married, with variation from this percentage among the markets: ASPAMDA (91.8%), Computer Village (85.7%), Alaba (77.6%) and Balogun (53.4%). By implication, as well, at the individual market level, Balogun has the highest percentage of singles (46.6%) in comparison to the other markets. In essence, married males feature most at ASPAMDA; followed by Computer Village and Alaba. A Chi-square test shows significant difference in marital status according to markets, with χ2= 67.043, df =3, at α= 0.000 significance level. The result indicates significant variation in the level of maturity of traders in the four markets. 7
100 50 Single
0
Married
Figure 4: Marital Status by market
Educational Status Tables 1 show the pattern of the level of education attained by the two categories of traders. The mode of educational attainment respectively for international and internal traders is secondary education (52.4%; 67.9%); followed by tertiary education (42.2 %; 25.2%) and primary education (5.4%; 6.9%). In essence, international traders are relatively highly educated compared to internal traders. This reflects the type of business contacts the former would have, as they require a higher level of literacy to transact business outside the country. Table 1: Educational status by category of traders
Primary Secondary Tertiary Total
International Traders Frequency % 24 5.4 233 52.4 188 42.2 445 100
Internal Traders Frequency % 19 6.9 186 67.9 69 25.2 274 100
Total Frequency 43 419 257 719
% 6.0 58.3 35.7 100
Also, at the individual market level, the mode is secondary education, with variations in the mode among the four markets. Respectively, it is secondary education for ASPAMDA (57.8%), Alaba (80.1%) and Balogun (61.2%), while Computer Village is the only one having its mode as tertiary education, with 50.4 per cent of its traders that attained this level of education. The prominence of secondary education among traders in all the markets surveyed implies that a secondary school certificate holder should be able to read and write, and should at least be knowledgeable enough to do some business arithmetic. Also, such a person is believed to have come of age. Besides, government policy on compulsory education of a child from primary school to at least junior secondary school corroborates its prominence among transnational and internal traders. Furthermore, according to the participants of the FGDs, which have Igbo traders as participants, majority of Igbo youths migrated from their places of origin to Lagos metropolis, after the completion of their secondary school education in order to learn a trade from a kinsman or 8
relative. They stated that attainment of a secondary school education before leaving their respective places of origin for Lagos was mandatory, as follows: In Igbo land, it is almost a tradition, if you can be able to finish secondary school, you serve your master and after 3 to 4 years, your master will now settle you and give you support in order for you to start trading (FGD, ASPAMDA). The reaction is that it is the tradition of Igbo people naturally to venture into business after their primary school or at most secondary school. Being an Igbo person, the tradition and flair for business have been naturally associated with us; therefore, most of us are secondary school leavers (FGD, Alaba Market)
1.7 Spatial Traders’ Mobility Patterns 1.7.1 Spatial Mobility Pattern: Destination of First transnational Trading Trip Figure 5 indicate that over half (53.4%) of transnational traders on their first trading trip went to destinations in East Asia; followed by those who went to West Asia (23.7%), and distantly to Northern Europe (6.6%) and West Africa (6.4%), in that order of importance. South America destinations (0.3%) received the lowest volume of traders from Nigeria, while North America had 3.1 per cent. Consequently, the pattern of the region of destination of traders on their first transnational trading trip reflects the high volume of mobility of traders to the Asian sub-continent, as East Asia and West Asia destinations combined accounted for over three-quarters (77.1%) of traders on their first trip outside Nigeria. Countries that feature prominently in the Asian sub-continent are China (129), Dubai (76), Japan (32) and Hong Kong (18). Others are United Arab Emirate (UAE) (6), Taiwan (8), Singapore (3), India (4), Thailand (4) and Singapore (4). On the other hand, there exists a low level of business and trade transactions between Nigeria and the rest of Africa. In West Africa, Benin Republic and Ghana each with 9 traders, topped the list; followed by Algeria (3) and Zimbabwe, Cameroun and Sierra Leone, which each had one trader patronizing the country. For Europe, Germany stands out, with 14 traders; followed by France (12) and the Netherlands (2). Spain and Italy each had one international trader that patronized the country. Also, the United States of America featured to some extent, with nine traders, while Brazil had just one trader. In essence, the diverse international destinations bring to the fore a new pattern that is quite different to the orthodox international destinations, as reviewed earlier on. This choice of destination by traders, no doubt was based on the type of goods in vogue (ICT), the known places for the products, the profit maximization and least cost efforts of the traders, among others. Together, the factors served as the driving force behind traders’ transnational mobility behaviour between Nigeria and international destinations where business items were purchased (Afolayan et al, 2011). Moreover, the destination pattern of traders on their first international trading trip differs by market as shown in Figure 5. About two- thirds of the traders that patronized East Asia (59.9%) were 9
traders from Computer Village; followed by traders from Alaba (17.3%), Balogun (14.5%) and ASPAMDA (8.9%) markets. Moreover, half of the relatively few traders that patronized destinations in South-Central Asia were from Alaba market and the remaining traders were from ASPAMDA (25%), Computer village (18.8%) and Balogun market (6.3%). On the other hand, all traders that patronized Western Europe were from Computer Village, and over half of the traders (55%), who went to Northern Europe, were from Computer Village. They are followed by Alaba market (35%), ASPAMDA (5%) and Balogun (5%).
Figure 5: Destination of first transnational trading trip by traders by market (Adopted from Afolayan et al, 2011) In addition, majority (66.7%) of the traders, who patronized southern Europe were from Balogun market, while the remaining traders were from Alaba market (33.3%). For West African countries, about three-quarters (69.6%) of traders were from Computer Village; followed by traders from Balogun (26.1%) and Alaba markets (4.3%). Furthermore, four-fifths (80%) of traders that patronised North American destinations, were from Computer Village, while the remaining traders were from Alaba market (20%). In essence, traders in Computer Village patronized Asian countries most among the four markets. A Chi-square test for the first international trip reveals a significant difference in the destinations, with χ2 = 450, df=6, at a = significance level = .000. 10
The predominance of the Asian bloc in the mobility of traders on their first transnational trading trip can be explained by the fact that products from the Asian manufacturing countries tend to be cheaper and more accessible compared to those from the European region. Oruame (Dubaiexporters.com, 2008) has listed the following nine points explaining why Dubai ruled Nigeria’s computer market, as: i) United Arabs Emirates (UAE) of which Dubai is the major centre, has an almost zero custom duty, ii) Dubai has well-supported infrastructure, iii) UAE government promote Dubai as meeting point for ideas and industries, it is a strategic warehouse for vendors and their major partnership for the sale of products and services to Africa and to the rest of the Arab World, iv) Personal Computers (PCs) from Dubai continued to sell more than even what is on offer from the indigenous Nigerian PC assembly firms, v) UAE has several free trading zones- the largest being Jebel Ali Free Zone (JAFZ) in Dubai, vi) tax concessions, vii) UAE has subsidized energy rates, viii) UAE promotes full transfer of capital and profits on investment, ix) most brand name products are readily available in Dubai. About the same idea is portrayed by Gulfnews.com, breaking news online, February 2004, and as follows: West Africa is traditionally dependent on imports from Europe and North Africa. However, thousands of West African traders, mostly from Nigeria and Ghana, have been using Dubai for some time as a source market for essential commodities. They found Dubai most convenient due to the city being an economic hub, in which they can buy the necessary items on a single trip. Also, extracts from FGDs and IDIs buttress the prominence of the region: I have been to United Kingdom but it is not a good business place (FGD, Computer Village), but in the Asia market, you get whatever you want and the flight ticket is cheap compared to that for other places. You can easily get connections because if you go to China, many companies are there. And you can even get the connection here in Nigeria because they have some China people here, who you can have your business connection with. You give them sample of what you want and they import it for you. You deposit some certain amount of money with them and it would be expended; based on the money you deposited (IDI, Footwear, Balogun Market).
Consequently, increasing numbers of traders from Nigeria tend to patronize Asia. In addition, the ‘Asian Tigers’ are involved in the manufacturing of a variety of products, unlike destinations in Western Europe and North America, where there is immense specialization, with its attendant high cost. In addition and consequently the increasing number of the Nigerian Diaspora in Asian cities in China, Dubai and Taiwan among others, is provided the need social network to facilitate transnational mobilities to Asia and the Far East. 11
The above submission is significant affirmation of the increasing trend of trade driven transnational mobilities from Nigeria, and in particular the emerging factor of the Nigerian Diaspora in Asia. 6.1.2 Location of Person Offering Assistance by Category of Traders Since apprenticeship is often within the city, Lagos, majority of the traders (63.6%) received assistance from persons located within Lagos, the centre of trade. Also, Table 2 reveals about threefifths (59.0%) of the international and 71.3 per cent of internal traders received assistance from persons located within Lagos. Table 2: Location of person that assisted business by category of traders;
Within Lagos state Outside Lagos state Outside Nigeria Total
International Traders Frequency % 243 59.0 158 38.3
Internal Traders Frequency % 176 71.3 68 27.5
Total Frequency % 419 63.6 226 34.3
11 412
3 247
14 659
2.7 100
1.2 100
2.1 100
Quite a substantial percentage of traders received help from persons located elsewhere in Nigeria; for all traders, it is 34.3 per cent, while the figures are 38.3 and 27.5 per cent for international and internal traders respectively. In contrast, only very few percentages of all the traders (international traders - 2.7%; internal traders - 1.2 %) received assistance from persons outside Nigeria. Again, the relatively higher percentage for international traders compared to that of internal traders indicates the need of the former for a relatively higher start-off capital. This is probably the reason for higher percentage of the former sourcing for assistance from outside the country, since such source might be in a better position to provide reliable and adequate assistance, all things being equal. 1.8 The Emerging Nigerian Diaspora in Asia The African Diaspora consists of peoples of African origin living outside the continent, irrespective of their citizenship or nationality and who are willing to contribute to the development of the continent and the building of the African Union (AU, 2005, cited in Bakewell 2008a, 9). Similarly, for the case of this paper, the Nigerian Diaspora could be defined as those Nigerians living outside the country and who are desirous or already contributing to the development of Nigeria. Diasporas, Nigerian Diaspora inclusive, have been a part of the world for millennia. Today two changes are making them matter much more. First, they are far bigger than they were. The world has some 215m first-generation migrants, 40% more than in 1990. If migrants were a nation, they would be the world’s fifth-largest, a bit more numerous than Brazilians, a little less so than Indonesians Second, thanks to cheap flights and Information and communication Technology (ICT), people can now stay in touch with the places they came from. A century ago, a migrant might board a ship, sail to America and never see his friends or family again. Today, he can text his trade partner in 12
foreign destinations at any given time and can wire money for the purchase of products in minutes after the transaction has been completed online. Trade and Business transactions can be carried out from any part of the globe (The Economist, 2011). ICT provides one of the most significant social networks. In this regard, one can authoritatively say that no other social networks offer the same global reach or commercial opportunity than the several platforms of ICT. This is because transnational social networks created by diasporas via ICT networks have three lucrative virtues: i) they speed the flow of information across borders, ii) they foster trust, iii) and most importantly, diasporas create connections that help people with good ideas collaborate with each other, both within and across ethnicities. For example, the success of Chike Obidigbo, an industrialist who runs a soap making factory in Enugu Nigeria but buys Chinese equipment has been hinged on his collaboration with Igbo middlemen in the Nigerian Diaspora in China, who are growing in number (The Economist, 2011). The fact that China and other Asian countries has become a major trading block with Nigeria as shown in Figure 5, has led to transnational mobilities and the emergence of a Nigerian Diaspora, which can be said to have keyed into the transnational social network, with the aim of contributing to the development of their homeland. The growing population of the Nigerian Diaspora in Asia is alluded to by several scholars (Bertoncello & Bredeloup (2007, and Bodomo (2007) who asserted that the population of African Diasporas, in particular Nigerians in Southern Chinese cities, such as, Hong Kong, Macau and in particular Guangzhou, than in any other part of China is on the rise. Bodomo (2007) attributed the rise in African trade in the Guangzhou area of China to its proximity to Hong Kong, which is a prominent re-exporting zone. He also predicts the evolution of a recognized African-Chinese Diaspora minority community in no distant time. The increasing Nigerian Diaspora in Asia and in China in particular in this 21st century has been facilitated by international social networks established by Nigerian Diaspora in Asia. A good example is the story of Spartan Arinze, a Nigerian, who pursed the American Dream to China. Arinze landed at the Guangzhou airport in southern China more than a decade ago he had $300 in his pocket and he didn’t speak a word of Chinese but he felt destined to do something big. In his words: “I came to China with the hope of looking for the American dream. You must have read that on my profile. “Some people dream of business, my dream was media,” he said. The connection between Nigeria and China is built on trade. Arinze remembers watching as more and more Chinese goods flooded the marketplace near his home in Nigeria’s Anambra State. At the time, visas to China were relatively easy for Nigerians to get. So Arinze decided to take his chances and go to the source of all those goods, where he hoped to make enough money to start his own social networking website.
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“That was the biggest risk in my life," he remembered. Arinze spent his first few years in Guangzhou doing whatever odd job would keep him there – teaching English, exporting purses to Nigeria – all the while researching and planning for the launch of his own social network. He studied sites like Face book and Yahoo. Arinze eventually developed his own web site named Gbooza!, which he launched in 2010 and is currently providing a social network system for the Nigerian Diaspora in China. Gbooza has also become a major driver of transnational mobilities of traders from Nigeria to China and other Asian destinations, as it provides information on trading opportunities and help to link up intending international traders with their kinsmen (Nigerian Diaspora) in Asia. Another example of increasing influence of the Nigeria Diaspora in transnational trade driven mobilities from Nigeria is reflected in the story of Chike Obidigbo who runs a factory in Enugu, Nigeria, making soap and other household goods. He needs machines to churn palm oil and chemicals into soap, stamp it into bars and package it in plastic. He buys Chinese equipment, he says, because although it is not as good as European stuff, it is much cheaper. But it is difficult for a Nigerian firm to do business in China. Mr. Obidigbo does not speak Chinese, and he cannot fly halfway around the world every time he wants to buy a new soap machine. Worse, if something goes wrong neither the Chinese government nor the Nigerian one is likely to be much help. Yet Mr. Obidigbo firm, Hardis and Dromedas, manages quite well with the help of middlemen in the African Diaspora. Any time he wants to inspect a machine he has seen on the internet, he asks an agent from his tribe, the Igbo, who lives in China to go and look at it. He has met several such people at trade fairs. “When you hear people speaking Igbo outside Nigeria, you must go and greet them,” he laughs. He trusts them partly because they are his ethnic kin, but mostly because an Igbo middleman in Guangdong needs to maintain a good reputation. If a middleman cheats one Igbo, all the others who buy machinery in Guangdong will soon know about it. News travels fast on the Diaspora grapevine. Thanks in part to Mr. Obidigbo’s Diaspora connections, Hardis and Dromedas is thriving. It employs 300 workers and sells about 300m naira-worth ($2m) of products each year. And it is just one of many African firms that use migrants as their eyes and ears in distant lands. The number of Africans living in China has exploded from hardly any two decades ago to tens of thousands today. One area of Guangzhou is now home to so many African traders that the locals call it Qiao-ke-li Cheng (Chocolate City). The emerging Nigerian Diaspora in Asia can also be seen in the sustained relationship maintained between Nigerian traders in Nnewi, a commercial town in Anambra State, and their Taiwan counterparts which dates as far back as the earlier 1960’s. Nnewi is the most significant motor spare parts market in the south eastern part of Nigeria and even in the sub-region. Nnewi is actually christened the ‘Taiwan of Africa’. Bräutigam (2003) in her work indicated that in the 1970s, many Nigerian traders travelled to Asia to meet their suppliers, and were thus exposed to the dynamism of Asian newly industrialized countries. These movements did not only strengthen the transnational trading networks that have evolved between them, but also provided the environment for the emergence of a Nigerian Diaspora in Taiwan. Nigeria traders in used their trading networks, 14
ethnic nationalities or Diasporas resident in Taiwan to pass on trading information to them before transnational traders departed the shores of the country. Findings have also shown that trade between Nigeria and Asian country’s is on the rise and helped facilitate foreign direct investment and infrastructural provision of in Nigeria by Asian countries. For example, the Nigeria-China trade and economic relationship: volume of trade between the two countries is currently estimated to be $13.3billion, representing an increase of $10 billion from the $3billion recorded in 2006; Nigeria’s socio-economic development is being fueled by Chinese imports and investments in strategic sectors of the Nigerian economy (Thisday, 2012); Nigeria is currently China’s 4th largest trade partner and the 2nd largest export trade partner in Africa; also in 2006 there was a major surge when China made almost US$5billion of infrastructure finance assurances to Nigeria, which accounts for 70% of China’s total guarantees to sub-Saharan Africa that year The sectored spread of Chinese infrastructure finance, pledges in Nigeria indicated that electricity is at the highest value of 33.4%, transport at 33.2%, ICT at 17.4%, general at 14.0%, and last water at 2.0% (Okun0.ola, 2008). In addition, Nigeria’s trade relationship with Asia has also facilitated bilateral cultural relationships and/or exchanges with many Asian countries. For example, South Korea among many other Asian countries maintains bilateral cultural agreement in areas of arts and culture, tourism and education; a greater proportion of international migrant traders patronize Chinese markets than those in Hong Kong. The pattern shows that Countries that feature prominently in the Asian sub-continent are China (129), Dubai (76), Japan (32) and Hong Kong (18). Others are United Arab Emirate (UAE) (6), Taiwan (8), Singapore (3), India (4), Thailand (4), Singapore (4), Spain and Italy each of which had one trader patronizing the country. Migrant traders to Asian countries most often transfer capital or funds via formal monetary agencies, such as, banks and foreign exchange outlets, as illegal trade are often not possible due to the stringent monetary laws and sanctions (Afolayan et al, 2011). The Nigerian Diaspora in the destination and alongside with their Asian trade partners in host countries provide the labour force, in the areas of interpretation, location of goods, foreign exchange and the shipment of purchased goods. The population of the Nigerian Diaspora in Asia countries is on the increase, as the is there is a change in the pattern of transnational mobilities of traders in the last two decades, from hitherto favorite destinations of western Europe to the Asian sub-continent, in particular to countries of China, Hong Kong, Taiwan, Dubai and South Korea among others. Though, the exact population of the Nigerian Diaspora in Asia remains within the domain of estimation, however, the increasing trade driven transnational mobilities is very manifest in Nigeria. 7.
Summary of Research Findings
The paper examined trade driven transnational mobilities and its nexus with the emerging Nigerian Diaspora in Asia in the new millennium and the summary of the main research findings are examined next.
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Male traders dominate transnational mobilities between Nigeria and Asia; they form the highest majority in ASPAMDA, Computer Village and Alaba markets, in which, the goods traded are mostly sophisticated, technical goods, such as motor spare parts, computer and accessories and electrical appliances, as against Balogun market, where female traders form relatively higher percentage, compared to other markets; but, where goods traded are mostly less complicated, technical goods, such as household utensils, clothing and foot wears. The mean age of the traders is 38.8 years; however, at the level of each market, the mean age varies significantly, as follows: 41.9, 38.7, 39.6 and 36.2 years respectively for ASPAMDA, Computer Village, Alaba and Balogun markets. This difference is significant using ANOVA test at P>0.00 level of significance. The age difference shows that it takes certain period of time for internal traders to change to international trading. Four-fifths of international traders (84.9%) were married, as against two-thirds of internal traders (67.8%); the proportion of singles among international traders is lower than it was among internal traders, with 15.1 per cent as against 32.2 per cent, respectively. The percentage of married traders varies among the markets: ASPAMDA (91.8%), Computer Village (85.7%), Alaba (77.6%) and Balogun (53.4%). The result indicates significant variation in the level of maturity of traders in the four markets. The level of educational attainment respectively for international and internal traders is secondary education (52.4%; 67.9%); followed by tertiary education (42.2 %; 25.2%) and primary education (5.4%; 6.9%). In essence, international traders are relatively highly educated compared to internal traders. In addition, at the individual market level, the mode is secondary education, with variations in the mode among the four markets. Igbo people naturally venture into trade and business after their primary school or at most secondary school education. South America destinations (0.3%) received the lowest volume of traders from Nigeria, while North America had 3.1 per cent; and the pattern of the region of destination of traders on their first transnational trading trip reflects the high volume of mobility of traders to the Asian sub-continent, as East Asia and West Asia destinations combined accounted for over three-quarters (77.1%) of traders on their first trip outside Nigeria. Countries that feature prominently in the Asian sub-continent are China (129), Dubai (76), Japan (32) and Hong Kong (18). Spain and Italy each had one international trader that patronized the country. Also, the United States of America featured to some extent, with nine traders, while Brazil had just one trader. Furthermore, the destination pattern of traders on their first international trading trip differs by markets. About two- thirds of the traders that patronized East Asia (59.9%) were traders from Computer Village; followed by traders from Alaba (17.3%), Balogun (14.5%) and ASPAMDA (8.9%) markets. Moreover, half of the relatively few traders that patronized destinations in SouthCentral Asia were from Alaba market and the remaining traders were from ASPAMDA (25%), Computer village (18.8%) and Balogun market (6.3%). On the other hand, all traders that patronized Western Europe were from Computer Village, and over half of the traders (55%), who went to Northern Europe, were from Computer Village. They are followed by Alaba market (35%), ASPAMDA (5%) and Balogun (5%). 16
For West African country destinations, about three-quarters (69.6%) of traders were from Computer Village; followed by traders from Balogun (26.1%) and Alaba markets (4.3%). Furthermore, four-fifths (80%) of traders that patronized North American destinations, were from Computer Village, while the remaining traders were from Alaba market (20%). In essence, traders in Computer Village patronized Asian countries most among the four markets. Generally, increasing number of traders from Nigeria tend to patronize Asia. In addition and consequently the increasing number of the Nigerian Diaspora in Asian cities in China, Dubai and Taiwan among others, has provided the needed social network to facilitate transnational mobilities to Asia and the Far East. The above submission is significant affirmation of the increasing trend of trade driven transnational mobilities from Nigeria, and in particular the emerging factor of the Nigerian Diaspora in Asia. Location of person that assisted business varies by category of traders; Quite a substantial percentage of traders received help from persons located elsewhere in Nigeria; for all traders, it is 34.3 per cent, while the figures are 38.3 and 27.5 per cent for international and internal traders respectively. In contrast, only very few percentages of all the traders (international traders - 2.7%; internal traders - 1.2 %) received assistance from persons outside Nigeria. Again, the relatively higher percentage for international traders compared to that of internal traders indicates the need of the former for a relatively higher start-off capital. The increasing Nigerian Diaspora in Asia and in China in particular in this 21st century has been facilitated by international social networks established by Nigerian Diaspora in Asia. The connection between Nigeria and Nigeria Diaspora in China is built on trade and facilitated by social networks like Gbooza. The latter has also become a major driver of transnational mobilities of traders from Nigeria to China and other Asian destinations, as it provides information on trading opportunities and help to link up intending international traders with their kinsmen (Nigerian Diaspora) in Asia. Nigerian traders use their transnational trading networks, ethnic nationalities or Diasporas resident in Taiwan to pass on trading information to them before transnational traders departed the shores of the country. Though, the exact population of the Nigerian Diaspora in Asia remains within the domain of estimation, however, the increasing trade driven transnational mobilities is very manifest in Nigeria. 8.
Conclusion
Trade driven transnational mobility of people from Nigeria to the Asian sub-continent predates the period of the Arabian Slave Trade; however, in this new millennium, the determinant of transnational mobilities from the country has changed from forced migration to a trade driven form of human mobility. Trade and business network systems have become the main driver of transnational mobility from Nigeria to Asian countries of China, Taiwan, Dubai, and Hong Kong in this millennium. Igbo traders from south eastern part of Nigeria Traders dominant trade driven transnational mobilities from the country; and majority of them are secondary school leavers who are of the school of thought that their educational status has adequately equipped them enough to go into international 17
trade driven mobilities. Transnational social network systems of which the Nigerian Diaspora in Asia is part significantly facilitate the trade driven transnational mobilities from Nigeria. Furthermore, the liberal trade policies, the existence of several free trade zones, the variety of products and the comparatively cheap products produced in Asian countries of China, Taiwan, Hong Kong, Dubai among others are major trade attractions and consequent transnational mobilities to Asian destinations. Acknowledgment I want to acknowledge the contribution of the Nigerian Team, made up of Prof. Adejumoke Afolayan, Dr. Godwin Ikwuyatum and Mr. Abejide, on the collaborative project of the International Migration Institute (IMI) University of Oxford UK: ‘African Perspectives of Human Mobility’, funded by MacArthur Foundation to this paper. The team was involved in the initial conception, field work and eventual report from which this paper was developed. References Afolayan, A. A, Ikwuyatum, G.O. and Abejide M. (2011) Dynamics of Internal and International Mobility of Traders in Nigeria Project Report submitted to the International Migration Institute (IMI) University of Oxford, UK Project: African Perspectives of Human Mobility funded by MacArthur Foundation. April 2011 Afolayan, A. A. (1976). Behavioural approach to the study of migration into and mobility within the metropolitan Lagos. Ph.D. Thesis, 1976. Afolayan, A. A. (2001). Issues and Challenges of Emigration Dynamics in Developing Countries. International Migration. Quarterly Review. Vol. 39. No. 4. Akinrinade, S. and Ajibewa, Aderemi (2003). “Globalization, Migration and the New African Diasporas: Toward a Framework of Understanding.” In Nigeria’s Struggle for Democracy and Good Governance; edited by Adigun Agbaje, Larry Diamond, and Ebere Onwudiwe, 431-440. Ibadan: Ibadan University Press. Bertoncello, B. and Bredeloup S. (2007). De Hong Kong a Guangzhou, de nouveaux ‘comptoirs’ africains s’organisent. Perspective Chinoises, (2007): 198-109 Bräutigam, D. (2003) Close Encounters: Chinese Business Networks as Industrial Catalyst in SubSaharan Africa. African Affairs (2003), 10 , Royal African Society 2003, pp 447-467 Bodomo, A. (2009). The African Trading Community in Guangzhou: An Emerging Bridge for Africa-China Relations. Accepted (October 2009) for publication in China Quarterly Butler, Kim. D. (2001). ‘Defining Diaspora, Refining a Discourse’; Diaspora 10 (2): pp.189-220. Claeson, C.F. (1969). A two-stage model for in migration to urban centres. A deductive development of a variant of the gravity formulation. Geografiska Annaler, 57, Series B: 127-139. Curtin, Phillip. (1984). Cross-Cultural Trade in World History. Cambridge: Cambridge University Press. 18
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