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Nigeria signs $30 million grant agreement with China to fund small-scale development projects across Nigeria.
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Budget Minister Abubakar Bagudu says states are proposing projects to deliver tangible benefits to communities.
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Chinese Ambassador Yu Dunhai links the grant to the two countries’ strategic partnership as Nigeria and China mark 55 years of diplomatic relations.
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China records $18 billion bilateral trade in the first half of 2026, with Nigerian exports rising 80 per cent.
October 30, (THEWILL) – Nigeria and China have signed a $30 million grant agreement to support small-scale development projects across the country, as both governments seek to deepen bilateral cooperation and improve the living conditions of Nigerians.
Chinese Ambassador to Nigeria, Yu Dunhai, disclosed this on Thursday in Abuja during the signing ceremony, where he acknowledged China’s continued support for Nigeria’s economic and social development.
The agreement provides for a grant of 200 million yuan, equivalent to $30 million, approved by the Chinese government to finance mutually agreed projects expected to deliver direct benefits to Nigerians.
Grant to Fund Small-Scale Projects
Chinese Ambassador to Nigeria, Yu Dunhai, described the proposed projects as “small but beautiful”, explaining that they would require limited investment while delivering quick results and improving citizens’ livelihoods.
He expressed confidence that the Nigerian government would deploy the funds effectively to achieve the intended development outcomes.
Bagudu described the agreement as evidence of the strong bilateral relationship between Nigeria and China, noting that it formed part of broader engagements under the Nigeria-China comprehensive strategic partnership.
He thanked the Chinese government for its continued assistance and stressed the need to translate commitments under the agreement into tangible benefits for Nigerians.
The minister disclosed that the Federal Ministry of Budget and Economic Planning, working with the Nigeria-China strategic partnership office, was identifying development projects proposed by state governments for consideration under the arrangement.
He said the process was aimed at ensuring that the grant supported projects capable of addressing development needs in communities across the country.
Bagudu Highlights Grassroots Poverty Interventions
The minister also highlighted the Federal Government’s efforts to tackle poverty at the grassroots, disclosing that 8,809 interventions had been recorded under the lowest level of the government’s economic support programme.
He said Nigeria could learn from China’s poverty eradication strategy to strengthen its own efforts to accelerate development and improve living conditions nationwide.
Bagudu further disclosed that Nigerian officials were participating in training programmes in China to strengthen their knowledge and capacity in development planning. He said the training was part of ongoing efforts to improve the country’s ability to design and implement effective development programmes.
The minister also acknowledged an earlier $1 million grant from China intended to strengthen Nigeria’s capacity in technology and knowledge development.
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China Links Grant to Strategic Partnership
In his remarks, Dunhai said the agreement represented an important step towards implementing commitments made by the leaders of both countries and the outcomes of the fourth China-Nigeria Cooperation Forum held in Beijing.
He noted that Nigeria and China were marking 55 years of diplomatic relations, characterised by mutual respect, cooperation and support across various sectors.
According to the ambassador, relations between the two countries were elevated to a comprehensive strategic partnership in 2024 following engagements between Chinese President Xi Jinping and Nigeria’s president.
He said the partnership had since entered a new phase of high-level engagement and high-quality development, with both countries committed to expanding cooperation in areas of mutual interest.
Dunhai reaffirmed China’s commitment to implementing agreements reached by the leaders of both countries and strengthening bilateral relations.
Nigerian Exports to China Rise 80%
The ambassador also highlighted China’s zero-tariff policy for Nigeria, which took effect on May 1, describing it as an opportunity to expand Nigerian exports, attract investment and promote industrial development.
He disclosed that bilateral trade between Nigeria and China reached $18 billion in the first half of 2026, while Nigeria’s exports to China increased by 80 per cent during the period.
Dunhai attributed the growth in Nigerian exports to the zero-tariff policy, saying it would improve access for Nigerian products to the Chinese market and create opportunities for expanded trade.
He urged both governments to negotiate an economic development partnership agreement before the preferential policy expires on May 1, 2028.
The ambassador called on relevant Nigerian ministries to coordinate their efforts towards concluding the proposed agreement and maximising the benefits of the policy.
He said both countries would continue to pursue shared development objectives and work towards building a community with a shared future.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
