The Government of the People’s Republic of China is reviewing Nigeria’s request to expand their bilateral currency swap agreement, initially established in 2018.
China’s Foreign Minister, Wang Yi, disclosed this development during a briefing after meeting President Bola Tinubu at the Aso Rock Villa in Abuja on Thursday. The agreement, originally valued at CN¥15 billion (about ₦720 billion or US$2.5 billion at the time), was aimed at reducing reliance on the US dollar, stabilizing Nigeria’s foreign reserves, and encouraging trade and investment between the two nations.
Exploring Financial Cooperation
Wang highlighted ongoing financial collaboration, suggesting Nigeria explore issuing Panda bonds—renminbi-denominated bonds—in China’s domestic markets. These bonds provide foreign entities with access to China’s liquidity while diversifying funding sources and mitigating exchange rate risks.
“The currency swap agreement reflects the strength of our financial cooperation. Regarding Nigeria’s request to expand the agreement, we will give it favorable consideration.
Additionally, issuing Panda bonds would offer Nigeria an additional revenue stream and support key infrastructure projects, such as railway modernization,” Wang stated.
Infrastructure Development Support
He noted China’s continued commitment to supporting Nigeria’s development, including financial contributions from Chinese banks toward Phase III of Nigeria’s railway modernization project.
Wang urged interested parties to consult the Chinese Embassy for further details on collaborative initiatives.
Deepening Economic Ties
Wang underscored the importance of bolstering bilateral economic relations, positioning the currency swap arrangement as a cornerstone of this partnership. “Our cooperation is broad and comprehensive, and we look forward to strengthening it further,” he said.
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Joint Efforts in African Security
China and Nigeria also reaffirmed their stance against external interference in Africa’s security affairs. Both nations committed to advancing African-led solutions for regional peace and stability.
China pledged CN¥1 billion in military assistance to the continent, including the training of 6,000 military personnel and 1,000 police officers. The support extends to bolstering the African Standby Force and enhancing counter-terrorism and peacekeeping operations.
“At the UN Security Council, China will consistently support Africa’s legitimate concerns. As the second-largest contributor to peacekeeping operations, China will continue to back African-led efforts to achieve security and stability,” Wang affirmed.
Nigeria’s Vision for Self-Reliance
Nigeria’s Foreign Minister, Yusuf Tuggar, reiterated the nation’s resolve to address security challenges domestically, with support from allies like China. He emphasized local production of military equipment as a priority to reduce dependence on foreign procurement.
“We aim to collaborate with countries like China to domesticate the production of military hardware. This approach ensures timely solutions to our challenges and reflects Nigeria’s commitment to self-reliance,” Tuggar explained.
He dismissed the idea of relying on private military companies, emphasizing Nigeria’s leadership role in West Africa and the Sahel region.
Conclusion
The strengthened partnership between China and Nigeria continues to evolve, with both nations seeking mutually beneficial solutions to economic and security challenges.
Through expanded financial cooperation and a shared vision for Africa’s development, their collaboration sets a foundation for sustained growth and stability.
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