China Grants Nigeria $30m for Community Projects
By Patience Ikpeme
Nigeria and China have signed a grant agreement worth RMB 200 million, about $30 million, to fund development projects that will directly benefit communities across Nigeria.
The agreement was signed at the Federal Ministry of Budget and Economic Planning in Abuja. A statement issued on Sunday described it as “another milestone in bilateral cooperation to advance Nigeria’s development priorities and deliver tangible benefits to citizens through targeted, locally driven initiatives.”
The money will go to projects agreed by both countries under China’s “small but beautiful” initiative. This programme focuses on investments that produce practical results, improve people’s lives and make a direct difference at community level.
The Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, welcomed China’s continued support. He described the partnership as an important platform for strengthening development cooperation, sharing knowledge and building understanding between the two countries. He thanked the Chinese Ambassador to Nigeria, Yu Dunhai, and his delegation for their commitment to closer ties, noting that progress over the years reflects both countries’ shared determination to achieve their development goals.
Senator Bagudu said the new grant builds on earlier Chinese support, including a $1 million contribution earlier this year to improve Nigeria’s capacity for technology and knowledge development. He also pointed to opportunities to expand trade, especially through China’s zero-tariff policy on Nigerian exports.
The minister said the main concern is to make sure that agreements between the two countries lead to real, measurable improvements in the lives of Nigerians. To achieve this, his ministry has been working with the Nigeria–China Strategic Partnership Office to develop projects proposed by states to meet specific needs at the grassroots.
Senator Bagudu also spoke about the Renewed Hope Ward Development Plan, which aims to identify economic opportunities and map economically active people in all 8,809 wards in the country. The goal is to promote development that is fair to all, well targeted and driven by local needs. He said Nigeria is keen to share the plan with China and learn from its experience, particularly in reducing poverty, so that more Nigerians can access economic opportunities and earn a better living.
The minister added that training Nigerian officials in China is important, noting that sharing knowledge and building strong institutions are essential if Nigeria is to carry out its development plans successfully.
In his own remarks, Ambassador Yu Dunhai described the grant as clear proof of China’s commitment to Nigeria’s development priorities and to the lasting partnership between both countries, which he said is built on trust, solidarity and a shared desire for economic and social progress.
He explained that the agreement follows the understanding reached by President Bola Ahmed Tinubu and President Xi Jinping when they met in China, as well as the outcomes of the Fourth China–Nigeria Cooperation Forum in Beijing. He noted that 2026 marks 55 years of diplomatic relations between the two countries, a relationship that has grown over the decades through cooperation in many sectors.
The ambassador spoke about the benefits of China’s zero-tariff policy on Nigerian exports, which began on May 1, 2026. According to him, trade between the two countries reportedly reached $18 billion in the first half of the year, while Nigeria’s exports to China rose by 80 per cent. He said the policy could open new markets for Nigerian businesses, attract investment, support industrial growth and encourage Nigerian producers to sell higher-value goods.
However, he warned that the zero-tariff arrangement will end on May 1, 2028. He urged both countries to use the time left to work towards an economic development partnership agreement that would protect the gains made so far and provide a more lasting framework for trade and economic cooperation. He called on the Ministry of Budget and Economic Planning, working with the Federal Ministry of Industry, Trade and Investment, to move the discussions forward.
The Permanent Secretary of the ministry, Dr Deborah Odoh, thanked the Chinese Government, the ambassador and his delegation for their support. She described the grant as a welcome sign of confidence in Nigeria’s development priorities. She also praised the ministers, the Chinese Embassy and the relevant ministries, departments and agencies, especially the International Cooperation and Legal Departments, for their roles in concluding the agreement.
The ministry said it remains committed to working with Chinese partners and other institutions to ensure the projects are carried out openly and efficiently, in line with the agreed goals, with the aim of delivering real benefits to Nigerians.
