Nigeria, China Seal RMB 200m Grant Deal for Grassroots Projects

Nigeria and China have signed a RMB 200 million grant agreement, worth about $30m, to support local development projects across the country.

The funding will target small-scale interventions that address community needs and deliver direct benefits to residents.

Both countries signed the agreement on Thursday at the Ministry of Budget and Economic Planning in Abuja.

Chinese Ambassador to Nigeria, Yu Dunhai, said the grant reflected Beijing’s commitment to Nigeria’s economic and social development.

He described the planned interventions as “small but beautiful” projects. They would require modest investments but deliver quick results and improve livelihoods.

“The funds will be used on projects mutually agreed upon by our two sides. We call them ‘small but beautiful’, meaning projects that require less input, deliver quick returns and directly benefit the livelihood of Nigerian people,” Dunhai said.

The ambassador expressed confidence that Nigeria would manage the funds effectively and ensure that the projects achieved their objectives.

He also stressed that China’s assistance would respect Nigeria’s sovereignty and development priorities.

“Chinese assistance fully respects Nigeria’s sovereignty and aligns with Nigeria’s own development goals. There are no political conditions or strings attached whatsoever,” he said.

Dunhai said the grant formed part of efforts to implement agreements reached by the leaders of both countries.

It also aligns with the outcomes of the Forum on China-Africa Cooperation summit held in Beijing.

He noted that 2026 marked 55 years of diplomatic relations between Nigeria and China.

Their relationship gained further momentum in 2024 when both countries upgraded their ties to a comprehensive strategic partnership.

The ambassador also highlighted China’s zero-tariff policy for eligible African countries, including Nigeria, which took effect on May 1, 2026.

He disclosed that bilateral trade reached $18bn in the first half of 2026.

Nigeria’s exports to China also increased by 80 per cent following the introduction of the policy, according to the ambassador.

Dunhai said the arrangement could help Nigeria expand exports, attract investments and develop higher-value industrial production.

He urged both countries to maximise the trade concessions before they expire on May 1, 2028.

He also called for the conclusion of an economic development partnership agreement before the deadline.

In his remarks, the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, welcomed the grant and thanked China for its continued support.

“Our responsibility is now to translate this commitment into tangible benefits for all Nigerians,” Bagudu said.

The minister disclosed that his ministry had worked with the China-Nigeria Strategic Partnership Office to compile project proposals submitted by states.

He said officials would review and consolidate the proposals to identify projects that address local needs and support national development priorities.

Bagudu also invited Chinese experts to study the findings of an economic mapping exercise covering Nigeria’s 8,809 wards.

He said their technical contributions could help the country accelerate development at the grassroots.

The minister noted that Nigeria could draw lessons from China’s experience in tackling poverty through targeted interventions.

He reaffirmed the Federal Government’s commitment to strengthening cooperation with China and ensuring that the partnership delivers mutual benefits.

The grant agreement marks another phase in the bilateral relationship, with both governments expected to select projects that produce measurable improvements in communities.