By Obiabin Onukwugha
The federal government and China have signed a $30m grant agreement to finance community-based development projects across Nigeria as part of efforts to reduce poverty, improve livelihoods and expand economic opportunities at the grassroots.
A statement issued by the Federal Ministry of Budget and Economic Planning on Sunday, said the agreement, valued at RMB200m ($30million), was signed at the Ministry’s in Abuja, on Thursday.
“Nigeria and China have signed a grant agreement worth RMB200m (approximately $30m) to support community-focused development projects under the Nigeria–China Development Cooperation, reinforcing the two countries’ longstanding strategic partnership,” the statement read in part.
According to the statement, the grant will finance mutually agreed projects under China’s “small but beautiful” initiative, which prioritises relatively small-scale interventions designed to deliver direct benefits to local communities.
Speaking at the signing, Minister of Budget and Economic Planning, Abubakar Bagudu, said the partnership will support Nigeria’s development priorities through targeted investments, knowledge exchange and institutional cooperation.
He explained that the ministry was working with the Nigeria–China Strategic Partnership Office to develop projects proposed by state governments to address specific community needs.
Bagudu also stressed that the priority was to ensure that bilateral agreements produced measurable improvements in people’s living conditions rather than remaining diplomatic commitments.
He highlighted that the initiative will support targeted development interventions, particularly in underserved communities, while providing opportunities to draw lessons from China’s experience in poverty reduction.
The minister identified the training of Nigerian officials in China as an important component of bilateral cooperation, saying capacity building would improve the country’s ability to implement development programmes.
The Chinese Ambassador to Nigeria, Yu Dunhai, described the agreement as a “demonstration of China’s commitment to supporting Nigeria’s economic and social development.”
He said the grant followed agreements reached between Presidents Bola Tinubu and Xi Jinping, during their meeting in China and subsequent bilateral engagements.
Dunhai also disclosed that trade between Nigeria and China reached $18bn in the first half of 2026, while Nigerian exports to China increased by 80 per cent, and attributed emerging trade opportunities partly to China’s zero-tariff policy on Nigerian exports, which took effect on May 1, 2026.
The ambassador said the arrangement could improve market access for Nigerian products, attract investment and encourage domestic processing and industrial development.
He, however, warned that the current zero-tariff arrangement was scheduled to expire on May 1, 2028, and urged both countries to pursue a longer-term economic development partnership agreement.
