Nigeria and China have signed a 200 million yuan (approximately $30 million) grant agreement to finance community-based development projects aimed at improving livelihoods and addressing development needs at the grassroots.
The agreement, signed in Abuja, is part of efforts to deepen bilateral cooperation and translate the longstanding strategic partnership between both countries into tangible benefits for citizens.
Speaking at the signing ceremony, the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, described the partnership as an important platform for strengthening development cooperation, knowledge exchange and mutual understanding.
Bagudu expressed appreciation to the Chinese Government and its Ambassador to Nigeria, Yu Dunhai, for their continued support, noting that the agreement reflected the shared commitment of both countries to advancing their development objectives.
He explained that the grant would fund mutually agreed projects under China’s “small but beautiful” initiative, which prioritises practical interventions capable of improving livelihoods and delivering direct benefits to communities.
The minister said the latest intervention builds on previous Chinese assistance, including a $1 million contribution earlier in 2026 to strengthen Nigeria’s capacity for technological and knowledge development.
He also identified opportunities for expanding trade and economic relations, particularly through China’s zero-tariff policy on Nigerian exports.
According to him, the priority of the Federal Government is to ensure that bilateral agreements produce measurable development outcomes, rather than remain diplomatic commitments.
Bagudu disclosed that his ministry, working with the Nigeria-China Strategic Partnership Office, had been developing project proposals submitted by state governments to address specific development challenges at the community level.
He also highlighted the Renewed Hope Ward Development Plan, which seeks to identify economic opportunities and map economically active individuals across Nigeria’s 8,809 wards to promote inclusive and targeted development.
The minister expressed the government’s readiness to share the initiative with China and draw from its experience in poverty reduction, particularly in expanding economic opportunities and improving living standards.
He further emphasised the need for capacity building, including training opportunities for Nigerian officials in China, stressing that knowledge transfer and institutional development were critical to effective implementation of the country’s development priorities.
In his remarks, Chinese Ambassador Yu Dunhai described the grant agreement as a concrete demonstration of his country’s commitment to Nigeria’s development priorities and the enduring strategic partnership between both nations.
He said the agreement was in line with the understanding reached between President Bola Tinubu and Chinese President Xi Jinping during their meeting in China, as well as the outcomes of the Fourth China-Nigeria Cooperation Forum held in Beijing.
Dunhai noted that 2026 marks 55 years of diplomatic relations between Nigeria and China, adding that the partnership had continued to expand through cooperation across various sectors.
On trade, the ambassador disclosed that bilateral trade volume reached $18 billion in the first half of 2026, while Nigeria’s exports to China increased by 80 per cent.
He attributed the development partly to China’s zero-tariff policy on Nigerian exports, which took effect on May 1, 2026, saying the initiative offered significant opportunities for Nigerian businesses to access the Chinese market, attract investment and support industrial development.
However, he noted that the current zero-tariff arrangement would expire on May 1, 2028, urging both countries to maximise the remaining period by negotiating an Economic Development Partnership Agreement to consolidate existing gains and establish a sustainable framework for trade cooperation.
The ambassador called on the Ministry of Budget and Economic Planning to work with the Federal Ministry of Industry, Trade and Investment to advance discussions on the proposed agreement.
Also speaking, the Permanent Secretary of the ministry, Dr Deborah Odoh, appreciated the Chinese Government, the ambassador and his delegation for their continued support, describing the grant as a demonstration of confidence in Nigeria’s development priorities.
Odoh commended the ministers, the Chinese Embassy and relevant ministries, departments and agencies, particularly the International Cooperation and Legal Departments, for their contributions to the successful conclusion of the agreement.
The ministry reaffirmed its commitment to working with Chinese partners and relevant institutions to ensure transparent and efficient implementation of the projects in accordance with the agreed objectives.
The agreement is expected to further strengthen Nigeria-China relations while supporting locally driven development initiatives designed to improve the welfare of communities across the country.
