"China is an emerging world power with a booming economy. She needs oil. Nigeria needs as much investment as possible, and to diversify the sources of its investment," Akinyemi said.

Almost all of Nigeria's current oil production is controlled by five Western multinationals, but China's CNOOC last week paid $2.7 billion for a 45 percent stake in a major offshore oilfield due to start pumping in 2008.

World oil prices hit record highs of $75 a barrel last week on concerns over tight global supplies. Rising prices have stoked fierce competition between Asia and the West over access to new reserves.

Since last year, Nigeria has favoured Asian over Western investors because they are more prepared to offer major infrastructure developments in exchange for drilling rights.

China will commit to investing $4 billion, Chukwueke added.

China also has major investments in Nigeria's fast-growing telecoms industry, and has found a ready market for cheap textiles and other finished goods.