China has approved a ¥200 million grant for Nigeria, worth about ₦40.3 billion, to support development projects jointly agreed by the two countries, reinforcing an increasingly important economic and diplomatic partnership.
The commitment was disclosed on Thursday during a meeting in Abuja between Chinese Ambassador to Nigeria Yu Dunhai and the Permanent Secretary of Nigeria’s Ministry of Foreign Affairs, Ambassador Dunoma Umar Ahmed.
The grant comes as Beijing and Abuja seek to translate their upgraded Comprehensive Strategic Partnership into practical economic outcomes. China and Nigeria marked 55 years of diplomatic relations in 2026, while senior officials have continued discussions on trade, infrastructure, industrialisation, technology and other areas of cooperation.
Yu said the funding reflected China’s continued support for Nigeria’s development and economic growth. He also linked the relationship to commitments made under the Forum on China-Africa Cooperation (FOCAC), the multilateral platform through which Beijing coordinates much of its engagement with African countries.
Ahmed welcomed the grant and said Nigeria would ensure that the funds were used effectively. He added that Abuja would work with Chinese authorities to implement existing bilateral agreements and convert cooperation into tangible benefits for citizens.
The grant is distinct from the large Chinese-backed loans that have historically financed major Nigerian infrastructure projects.
China’s Export-Import Bank provided a $500 million preferential buyer’s credit for the Abuja-Kaduna railway, while the Lagos-Ibadan railway was also financed substantially through China Eximbank.
More recently, the China Development Bank provided a €245 million loan for the Kaduna-Kano railway. The first disbursement was made in December 2024, according to project-finance data.
The new grant, however, carries a different significance because it is non-repayable development assistance, rather than a commercial or concessional loan.
Specific projects to be financed from the ¥200 million have not yet been publicly itemised. That leaves implementation details, including project selection, timelines and disbursement arrangements, as key issues to watch.
For Nigeria, the immediate economic value will depend less on the headline amount than on how efficiently the funds are deployed. For China, the commitment underscores its effort to deepen economic and strategic ties with one of Africa’s largest economies while maintaining Nigeria as an important partner in its broader Africa policy.
