Nigeria and China have signed a 200 million yuan (about $30 million) grant agreement to fund community-based development projects aimed at improving livelihoods and creating economic opportunities at the grassroots.
The agreement was signed in Abuja by the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, and Chinese Ambassador to Nigeria, Yu Dunhai.
The funds will go to projects under China’s “small but beautiful” initiative, which backs relatively modest investments that deliver direct, measurable benefits to local communities.
“Not just commitments on paper”
Bagudu said the grant would strengthen the partnership between both countries and advance Nigeria’s development priorities. He stressed that the government wanted agreements with development partners to produce real benefits for Nigerians.
He noted that the grant builds on earlier Chinese support, including a $1 million contribution made earlier this year to strengthen Nigeria’s technological and knowledge capacity.
The government is working with the Nigeria-China Strategic Partnership Office to develop projects proposed by state governments, he said.
Bagudu also highlighted the Renewed Hope Ward Development Plan, which seeks to identify economic opportunities and map economically active people across Nigeria’s 8,809 wards. He said Nigeria was keen to share the initiative with China and learn from its experience in reducing poverty and developing communities.
He also called for more training opportunities in China for Nigerian public officials, saying stronger skills and institutions were vital to implementing development programmes effectively.
Zero-tariff window
Ambassador Yu described the grant as a practical sign of China’s commitment to Nigeria’s development, built on mutual trust and solidarity. He said it followed understandings reached between President Bola Tinubu and Chinese President Xi Jinping, as well as resolutions of the Fourth China-Nigeria Cooperation Forum in Beijing.
Diplomatic relations between the two countries were established 55 years ago.
On trade, Yu said China’s zero-tariff policy for Nigerian exports, which took effect on May 1, 2026, could help attract investment and support industrial growth. He said bilateral trade reached $18 billion in the first half of 2026, while Nigeria’s exports to China rose by 80 per cent.
However, he warned that the arrangement expires on May 1, 2028. He urged both sides to use the remaining time to negotiate an Economic Development Partnership Agreement that would make the benefits lasting, and asked the Ministry of Budget and Economic Planning to work with the Federal Ministry of Industry, Trade and Investment to advance talks.
Transparency pledge
The ministry’s Permanent Secretary, Dr Deborah Odoh, thanked the Chinese government and described the grant as a vote of confidence in Nigeria’s development priorities. She commended the ministry’s International Cooperation and Legal Departments and other agencies involved in the deal.
The ministry said it would work with Chinese partners and other institutions to ensure the projects are implemented transparently and efficiently, in line with the agreement.
