The agreement, signed on Thursday at the headquarters of the Federal Ministry of Budget and Economic Planning in Abuja, underscores China’s continued support for Nigeria’s economic and social development, with both countries reaffirming their commitment to a mutually beneficial partnership based on mutual respect and trust.
Chinese Ambassador to Nigeria, Yu Dunhai, said the grant was a reflection of the enduring strategic partnership between the two countries and their shared commitment to improving the welfare of their citizens.
He explained that the funds would be deployed to projects mutually agreed upon by both governments, with emphasis on initiatives requiring relatively modest investment but capable of delivering quick results and direct benefits to local communities.
“We call them small but beautiful, meaning projects with less input, quick returns, and direct benefit to the livelihood of Nigerian people,” Yu said.
He expressed confidence that the Nigerian government would utilise the funds effectively to ensure that the benefits reach the people, particularly through projects addressing local development needs.
The ambassador said the grant also represented a practical step towards implementing the consensus reached by the two countries’ leaders and the outcomes of the Forum on China-Africa Cooperation (FOCAC) summit in Beijing.
Yu reaffirmed that China-Nigeria relations were built on mutual respect, solidarity and support, noting that both countries had stood by each other through different challenges over more than five decades of diplomatic relations.
He stressed that the partnership was focused on supporting Nigeria’s development priorities and deepening cooperation for the mutual benefit of both countries.
The ambassador also highlighted China’s zero-tariff policy for Nigerian and other African products, which took effect on May 1, 2026, describing it as another significant demonstration of Beijing’s commitment to expanding economic opportunities for African countries.
According to him, China-Nigeria bilateral trade reached $18 billion in the first half of 2026, while Nigerian exports to China recorded significant growth following the implementation of the policy.
He said the preferential access to China’s vast consumer market could help Nigeria expand exports, attract investment and strengthen its industrial capacity.
Yu urged both countries to make effective use of the remaining period of the zero-tariff arrangement to negotiate an economic development partnership agreement before the current preferential arrangement expires on May 1, 2028.
In his remarks, the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, expressed appreciation to the Chinese government for its continued assistance and commitment to Nigeria’s development.
Bagudu described the grant agreement as an important step in strengthening bilateral cooperation, noting that the responsibility now rested with the Nigerian government to translate the support into practical benefits for citizens.
“Our responsibility is now to translate this commitment into tangible benefit for all Nigerians,” the minister said.
He disclosed that his ministry, working with the China-Nigeria strategic partnership office, had been identifying potential “small but beautiful” projects across states that could produce meaningful development outcomes.
Bagudu said the ministry would expedite the compilation of the proposed projects to ensure that the grant was channelled towards initiatives with measurable impact on communities.
He also acknowledged China’s earlier financial support to Nigeria, including a $1 million assistance package received earlier in 2026, for which procurement was nearing completion.
The minister further commended China’s zero-tariff policy, expressing optimism that it would expand trade volumes and create additional opportunities for Nigerian producers and exporters.
He thanked Ambassador Yu and his team for sustaining engagement with Nigeria and expressed confidence that the grant agreement would mark the beginning of another successful phase of bilateral development cooperation.
