FG, China Sign $30m Grant Agreement to Fund Grassroots Development Projects Across Nigeria
The Federal Government has signed a $30 million grant agreement with China to support community-based development projects across Nigeria, as part of efforts to reduce poverty, improve livelihoods and expand economic opportunities at the grassroots.
The agreement, valued at RMB200 million, was signed on Thursday at the Federal Ministry of Budget and Economic Planning in Abuja, according to a statement issued by the ministry on Sunday.
The ministry said the grant would support community-focused projects under the Nigeria-China Development Cooperation framework, strengthening the longstanding partnership between both countries.
The funding will be deployed through China’s “Small but Beautiful” initiative, which focuses on relatively small-scale projects designed to deliver direct benefits to local communities.
Speaking at the signing ceremony, the Minister of Budget and Economic Planning, Abubakar Bagudu, said the agreement would support Nigeria’s development priorities through targeted investments, knowledge exchange and institutional cooperation.
Bagudu disclosed that his ministry was working with the Nigeria-China Strategic Partnership Office to develop projects proposed by state governments to address specific needs in their communities.
He stressed that the priority was to ensure that bilateral agreements translated into measurable improvements in people’s living conditions rather than remaining diplomatic commitments.
The minister also highlighted the Federal Government’s Renewed Hope Ward Development Plan, which seeks to identify economic opportunities and economically active residents across Nigeria’s 8,809 wards.
According to him, the initiative would promote targeted interventions in underserved communities while allowing Nigeria to draw lessons from China’s experience in poverty reduction.
The latest grant follows an earlier $1 million contribution from China in 2026 to strengthen Nigeria’s technological and knowledge development capacity.
Bagudu also identified the training of Nigerian government officials in China as an important part of bilateral cooperation, noting that capacity building would improve the implementation of development programmes.
The Chinese Ambassador to Nigeria, Yu Dunhai, described the agreement as a demonstration of his country’s commitment to supporting Nigeria’s economic and social development.
He said the grant followed agreements reached between President Bola Tinubu and Chinese President Xi Jinping during their meeting in China, as well as subsequent bilateral engagements.
Dunhai disclosed that trade between Nigeria and China reached $18 billion in the first half of 2026, while Nigerian exports to China increased by 80 per cent.
He attributed the growing trade opportunities partly to China’s zero-tariff policy on Nigerian exports, which took effect on May 1, 2026.
The ambassador said the arrangement could improve market access for Nigerian products, attract investments and encourage domestic processing and industrial development.
However, he noted that the current zero-tariff arrangement was scheduled to expire on May 1, 2028, urging both countries to pursue a longer-term economic development partnership agreement.
He called on the Ministry of Budget and Economic Planning and the Federal Ministry of Industry, Trade and Investment to advance discussions on the proposed framework.
The Permanent Secretary of the Ministry of Budget and Economic Planning, Deborah Odoh, welcomed the agreement and commended the institutions involved in concluding the deal.
The ministry pledged to work with Chinese authorities and relevant Nigerian institutions to ensure transparent and efficient implementation of the projects.
The agreement comes as Nigeria and China mark 55 years of diplomatic relations in 2026, with both countries seeking to expand cooperation in trade, investment and grassroots development.