The Federal Government of Nigeria and the Government of the People’s Republic of China have signed a 200 million yuan, equivalent to $30 million, grant agreement to finance grassroots, community-based development projects across the country.
The agreement is aimed at boosting grassroots development and livelihoods nationwide, while deepening economic cooperation between the two countries.
The grant will fund small-scale projects designed to meet specific community needs, improve livelihoods and create economic opportunities at the grassroots level.
It falls under China’s “small but beautiful” initiative, which prioritises relatively modest investments that can deliver direct, measurable benefits to local communities.
Budget and Economic Planning Minister Abubakar Bagudu, speaking at the signing ceremony in Abuja, said the agreement would strengthen Nigeria’s partnership with China and support the country’s development priorities.
He said the government was determined to ensure that agreements with development partners produce practical benefits rather than remain commitments on paper.
“The grant will support projects that address specific needs in communities, improve livelihoods and create economic opportunities, particularly at the grassroots,” he said.
The Minister also disclosed that the agreement builds on earlier Chinese assistance, including a $1 million contribution earlier in 2026 to strengthen Nigeria’s technological and knowledge-development capacity.
According to the Minister, the Federal Government is working with the Nigeria-China Strategic Partnership Office to develop projects proposed by state governments and targeted at community-level challenges.
He also highlighted the Renewed Hope Ward Development Plan, an initiative intended to identify economic opportunities and map economically active individuals across the nation’s 8,809 wards.
He said Nigeria could learn from China’s experience in poverty reduction, job creation and community development.
He also called for stronger cooperation in human-capital development, including training opportunities for Nigerian public officials in China, and urged deeper trade ties through China’s zero-tariff policy for Nigerian exports.
Chinese Ambassador to Nigeria Yu Dunhai described the agreement as a practical demonstration of China’s commitment to Nigeria’s development and the strategic relationship between the two countries.
He said it followed understandings reached between President Bola Tinubu and Chinese President Xi Jinping, as well as resolutions from the Fourth China-Nigeria Cooperation Forum in Beijing.
Dunhai said bilateral trade reached $18 billion in the first half of 2026, while Nigerian exports to China rose 80 per cent.
He said China’s zero-tariff policy for Nigerian exports, which took effect May 1, 2026, could expand market access, attract investment and support industrial development.
The ambassador, however, warned that the tariff arrangement would expire May 1, 2028.
He urged both governments to use the remaining period to negotiate an Economic Development Partnership Agreement that would preserve the benefits of the concession and provide a longer-term plan for trade and investment.
Permanent Secretary, Ministry of Budget and Economic Planning, Deborah Odoh, said the ministry would work with Chinese partners and other relevant institutions to implement the projects transparently and efficiently, in line with the agreement’s terms.
