By KEHINDE VICTOR

KEY POINTS

• Federal Government has signed a $30m grant agreement with China to finance small-scale development projects across Nigeria.
• The Chinese government approved a 200-million-yuan grant for projects expected to deliver direct benefits to Nigerians.
• State governments are proposing projects for consideration, with the Budget Ministry and Nigeria-China strategic partnership office coordinating the selection process.
• China said bilateral trade reached $18bn in the first half of 2026, while Nigerian exports to China rose by 80%.
• Both countries are considering an economic development partnership agreement ahead of the expiration of China’s zero-tariff policy on 1 May 2028.

MAIN STORY

Nigeria has secured a $30m grant from China to support small-scale development projects across the country, as both governments seek to deepen economic cooperation and translate their bilateral partnership into tangible benefits for citizens.

The Federal Government signed the grant agreement in Abuja on Thursday, with Minister of Budget and Economic Planning, Senator Abubakar Bagudu, and Chinese Ambassador to Nigeria, Yu Dunhai, highlighting the projects and broader development priorities the funding is expected to support.

Dunhai said China had approved a 200-million-yuan grant, equivalent to $30m, for Nigeria’s economic and social development. He described the proposed projects as “small but beautiful”, explaining that they would require limited investment, deliver quick results and improve people’s livelihoods.

The minister said the Federal Ministry of Budget and Economic Planning and the Nigeria-China strategic partnership office were identifying projects proposed by state governments for consideration.

Bagudu stressed that the government must ensure the agreement produces practical results for Nigerians rather than remain a diplomatic commitment.

The grant forms part of broader engagements under the Nigeria-China comprehensive strategic partnership, which was elevated in 2024 following engagements between Chinese President Xi Jinping and Nigeria’s president.

THE ISSUES

How the grant will reach communities

The immediate task is identifying the projects that will receive funding.

According to Bagudu, state governments have proposed development projects, which are being reviewed by the Budget Ministry and the Nigeria-China strategic partnership office.

The Chinese ambassador said the funding would support mutually agreed projects intended to deliver direct benefits to Nigerians.

However, the announcement did not specify the projects to be funded, the states that would benefit, the implementation timetable or how the grant would be distributed.

These details will determine how quickly the funding translates into improvements in communities.

The minister also referred to an earlier $1m Chinese grant intended to strengthen Nigeria’s capacity in technology and knowledge development.

He said Nigerian officials were participating in training programmes in China to improve their knowledge and capacity for development planning.

Poverty reduction and grassroots development

Bagudu linked the grant to the government’s efforts to tackle poverty at the grassroots.

He disclosed that 8,809 interventions had been recorded under the lowest level of the economic support programme, although he did not provide further details about the interventions in his remarks.

The minister also said Nigeria could learn from China’s poverty eradication strategy to accelerate development across the country.

The focus on small-scale projects suggests an effort to support interventions that can be implemented with limited funding and produce visible results within a shorter period.

WHAT’S NEXT

Nigeria-China trade and zero-tariff access

Beyond the grant, both countries are seeking to expand trade and investment through China’s zero-tariff policy for Nigeria, which took effect on 1 May 2026.

Dunhai said bilateral trade reached $18bn in the first half of 2026, while Nigeria’s exports to China increased by 80%.

He attributed the export growth to the preferential trade policy, which he said could improve Nigerian products’ access to the Chinese market and support industrial development.

However, the policy is scheduled to expire on 1 May 2028. The ambassador urged relevant Nigerian ministries to coordinate negotiations towards an economic development partnership agreement before that deadline.

Such an agreement would be intended to sustain the trade benefits and create opportunities for Nigerian exporters and investors.

The ambassador also said the grant agreement represented a step towards implementing commitments made by both countries’ leaders and outcomes of the fourth China-Nigeria Cooperation Forum in Beijing.

Nigeria and China are marking 55 years of diplomatic relations, with both governments expressing their intention to strengthen cooperation across different sectors.

BOTTOM LINE

The $30m Chinese grant gives Nigeria additional funding for small-scale development projects, but its impact will depend on the quality of project selection, implementation and accountability. The next important step is identifying the communities and projects that will benefit. At the same time, Nigeria faces a separate trade opportunity: negotiating an economic development partnership agreement before China’s zero-tariff policy expires in May 2028.

Source: NAN