There has been an increase of Chinese investments to Nigeria after the formal establishment of Sino-Nigeria diplomatic relations in 1971. In 2014, China foreign direct investment (FDI) to Nigeria was around 1.9 billion USD, while the export volume stood at 15.4 billion USD making Nigeria to become largest importer of Chinese commodities in Africa. With this large number of the Chinese firms and FDI in Nigeria, this work assessed the competitiveness of Chinese firms, and their competitive advantage in Nigeria market. Using survey approach, and the model proposed by (Man, Lau et al. 2002) on Small and Medium Enterprises competitiveness the work determined the competitiveness of the Chinese firms in Nigerian market. A total number of 96 respondents were selected from 32 Chinese firms accessible to the researchers. Structured questionnaire were administered to them and some of them were interviewed. Among the findings were that Chinese firms in Nigerian market are significantly enjoying competitive advantage among other firms in Nigeria; political and policies instability, poor infrastructures language barrier and insecurity were major challenges; tariff incentives and large potential market were major motivations for operating in Nigeria Market. The work recommended among others that the Chinese firms operating in Nigeria should belong to relevant trade associations; maintain a club of quality assurance; enhance knowledge sharing by training locals in order to fast tract their operations efficiently; and employ the service of advertising agencies to create awareness and improve acceptability among the populace and the governments.