Nigeria and China have signed a $30 million grant agreement to pay for small-scale development projects in communities across the country.
Main image: DGBN graphic. Photo: European Union, 2023 / Wikimedia Commons, CC BY 4.0
The deal, worth 200 million yuan, was signed in Abuja on Thursday by Nigeria’s Minister of Budget and Economic Planning, Abubakar Bagudu, and China’s Ambassador to Nigeria, Yu Dunhai. It is a grant, not a loan, so Nigeria will not have to repay it.
“Small but beautiful” projects
Ambassador Yu described the planned schemes as “small but beautiful”: projects that need modest investment but can deliver quick, visible improvements to people’s lives. The money will go to projects agreed by both governments.
Bagudu said his ministry is working with the Nigeria-China strategic partnership office to sift proposals put forward by state governments. He stressed that the commitments must turn into real benefits for Nigerians, and said Nigeria could learn from China’s experience of cutting poverty.
The minister also said Nigerian officials are attending training programmes in China on development planning, and acknowledged an earlier $1 million Chinese grant aimed at technology and knowledge development.
Trade is booming, Beijing says
Yu used the signing to highlight the wider relationship as the two countries mark 55 years of diplomatic ties. According to the ambassador, trade between Nigeria and China reached $18 billion in the first half of 2026, and Nigeria’s exports to China rose by 80 per cent over the same period.
He credited China’s zero-tariff policy for Nigerian goods, which took effect on 1 May, and urged both sides to negotiate an economic development partnership agreement before that preferential treatment expires on 1 May 2028.
Why it matters
Thirty million dollars is small set against Nigeria’s needs, but grants of this kind come without the repayment burden that is weighing on many African budgets. That contrast is sharp this week, as Abuja seeks approval for a large new borrowing programme. DGBN has reported on how Nigeria is defending its $21.7bn borrowing plan.
The deal also shows how Nigeria is working several partners at once. This week, it also renewed its push with Germany for investment, food security and jobs. For Nigerians at home and abroad, the real test will be whether the projects chosen reach the communities that need them most, and whether the export gains with China translate into jobs.