China provides Nigeria with a US$30 million grant for community-based development projects, supporting grassroots poverty reduction, local infrastructure and economic opportunities across the country's 8,809 wards.
Nigeria and China have signed a grant agreement worth 200 million Chinese yuan (approximately US$30 million) to finance community-based development projects across Nigeria. The funding is aimed at supporting poverty reduction, improving livelihoods and expanding economic opportunities in underserved communities through targeted local interventions.
The agreement was signed at the Federal Ministry of Budget and Economic Planning in Abuja. The initiative forms part of the Nigeria-China Development Cooperation framework and will support projects under China's “small but beautiful” approach, which focuses on relatively small-scale investments designed to deliver direct and measurable benefits to local communities.
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Nigeria's Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, said the government was working with the Nigeria-China Strategic Partnership Office to develop proposals submitted by state governments. The projects will be selected based on specific community requirements and national development priorities. He emphasised the importance of ensuring that bilateral agreements translate into tangible improvements in people's living conditions.
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. The initiative is intended to support targeted development interventions, particularly in underserved areas. Bagudu said Nigeria could also benefit from China's experience in poverty reduction and community-level development.
Chinese Ambassador to Nigeria Yu Dunhai described the grant as evidence of China's commitment to supporting Nigeria's economic and social development. He said the agreement followed discussions between Nigerian President Bola Tinubu and Chinese President Xi Jinping, along with subsequent bilateral engagements.
The ambassador also highlighted growing economic relations between the two countries. Bilateral trade reached US$18 billion in the first half of 2026, while Nigerian exports to China increased by 80 per cent, according to figures cited by the ambassador. He attributed the growth partly to China's zero-tariff policy on Nigerian exports, which came into effect on May 1, 2026.
The arrangement is scheduled to remain in place until May 1, 2028. Dunhai encouraged both governments to pursue a longer-term economic development partnership agreement to sustain market access and expand trade opportunities.
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The grant follows an earlier US$1 million Chinese contribution in 2026 to strengthen Nigeria's technological and knowledge development capacity. The Nigerian ministry said it would work with Chinese authorities and relevant institutions to ensure transparent and efficient implementation of the funded projects.
The agreement comes as Nigeria and China mark 55 years of diplomatic relations in 2026, with both countries seeking to expand cooperation in development, trade and investment.