By Stella Odueme
Nigeria and China have signed a grant agreement worth RMB 200 million (approximately $30 million) to finance community-based development projects aimed at improving livelihoods and addressing local development needs across the country.
The agreement was signed at the Federal Ministry of Budget and Economic Planning in Abuja under the Nigeria–China Development Cooperation framework.
According to a statement on Sunday, the initiative is expected to strengthen bilateral relations while supporting projects that deliver direct and measurable benefits to communities.
Speaking at the signing ceremony, the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, commended the Chinese Government for its continued support and commitment to deepening development cooperation with Nigeria.
Bagudu described the partnership as an important avenue for knowledge exchange, mutual understanding and the advancement of shared development objectives.
He particularly appreciated the Chinese Ambassador to Nigeria, Yu Dunhai, and his delegation for their contributions to strengthening relations between both countries.
According to the minister, the grant will fund mutually agreed projects under China's "small but beautiful" initiative, which prioritises practical interventions capable of improving livelihoods and creating tangible impacts at the grassroots.
He said the latest funding builds on previous Chinese assistance, including a $1 million contribution made earlier in 2026 to strengthen Nigeria's technological and knowledge development capacity.
Bagudu disclosed that the ministry, working with the Nigeria–China Strategic Partnership Office, had been developing project proposals submitted by states to address specific community needs.
He also highlighted the Renewed Hope Ward Development Plan, which seeks to identify economic opportunities and map economically active individuals across Nigeria's 8,809 wards to promote inclusive development.
The minister expressed Nigeria's readiness to learn from China's experience in poverty reduction and economic development, noting that such cooperation would help expand opportunities, tackle poverty and improve citizens' living conditions.
He further stressed the importance of capacity building, particularly the training of Nigerian officials in China, to strengthen institutional capacity and improve the implementation of development programmes.
In his remarks, Chinese Ambassador Yu Dunhai said the agreement demonstrated China's commitment to supporting Nigeria's development priorities and strengthening the strategic partnership between the two countries.
He explained that the agreement was in line with the understanding reached between President Bola Ahmed Tinubu and Chinese President Xi Jinping during their meeting in China, as well as the outcomes of the Fourth China–Nigeria Cooperation Forum held in Beijing.
The ambassador noted that 2026 marks 55 years of diplomatic relations between Nigeria and China, describing the relationship as one built on mutual trust, solidarity and cooperation across several sectors.
On trade relations, Dunhai said China's zero-tariff policy on Nigerian exports, which commenced on May 1, 2026, had created significant opportunities for Nigerian businesses.
He disclosed that bilateral trade reportedly reached $18 billion in the first half of 2026, while Nigeria's exports to China recorded an 80 per cent increase.
According to him, the policy would enhance market access for Nigerian products, attract investments, stimulate industrial development and encourage the export of value-added goods.
However, he pointed out that the current zero-tariff arrangement would expire on May 1, 2028, urging both countries to maximise the remaining period by working towards an economic development partnership agreement.
He called on the Ministry of Budget and Economic Planning, in collaboration with the Federal Ministry of Industry, Trade and Investment, to intensify discussions towards establishing the proposed agreement.
Earlier, the Permanent Secretary of the ministry, Dr Deborah Odoh, expressed appreciation to the Chinese Government, the ambassador and his delegation for their continued support.
Odoh described the grant as a demonstration of confidence in Nigeria's development agenda and commended the ministries, departments and agencies, particularly the International Cooperation and Legal Departments, for their roles in concluding the agreement.
The ministry reaffirmed its commitment to ensuring transparent and efficient implementation of the projects in collaboration with Chinese partners and other relevant institutions.
The agreement is expected to further consolidate Nigeria–China relations while translating bilateral commitments into practical development outcomes for communities across the country.