• Beijing pledges panda bonds, infrastructure development
'Seun Ibukun-Oni, Abuja
DAILY COURIER – In a significant boost to Nigeria-China relations, China has pledged robust financial, security, and infrastructural support to Nigeria. This includes the renewal of the currency swap agreement, backing for Nigeria’s issuance of Panda Bonds, and support for critical infrastructure projects, such as railway modernization.
At a joint press briefing held at the Presidential Villa in Abuja on Thursday, China’s Foreign Minister, Wang Yi, reaffirmed his country’s commitment to advancing bilateral ties. Speaking alongside Nigeria’s Foreign Minister, Ambassador Yusuf Tuggar, Wang Yi emphasized the strategic importance of their partnership, describing it as a model for South-South cooperation.
Renewed Currency Swap and Panda Bonds Support
China renewed its currency swap deal with Nigeria, valued at 15 billion yuan (approximately $2 billion), for another three years. The agreement facilitates trade by allowing transactions in local currencies, bypassing the dollar, and easing pressure on Nigeria’s foreign exchange reserves.
Wang Yi confirmed that Beijing is considering Nigeria’s request to expand the swap line. He also expressed confidence in Nigeria’s credibility, highlighting the potential benefits of issuing Panda Bonds, which are renminbi-denominated debt securities issued in China’s domestic market.
“We welcome Nigeria’s issuance of Panda Bonds in China. These bonds will provide reliable revenue, with guaranteed safety backed by Chinese financial systems,” Wang Yi said.
Infrastructure and Security Support
Beyond financial cooperation, China remains a key partner in Nigeria’s infrastructure development. Wang Yi noted the recent completion of phase three of Nigeria’s railway modernization project, financed by Chinese banks. The Kano-Kaduna railway is a testament to their shared progress in this sector.
On security, China committed to training 6,000 military personnel and 1,000 police officers across Africa. Wang Yi also announced $1 billion in military assistance grants for Africa, with a focus on bolstering the African Standby Force and counter-terrorism efforts.
“We aim to build a partnership that advances peace and security under the Global Security Initiative. African nations are the true masters of their continent, and China will support them in resolving conflicts through dialogue and self-reliance,” he stated.
Nigeria Rejects Foreign Mercenaries, Prioritizes Local Military Production
Nigeria’s Foreign Minister, Yusuf Tuggar, reiterated the country’s stance against employing foreign mercenaries to tackle insecurity. Instead, Nigeria seeks to domesticate the production of military equipment through partnerships with allies like China.
“We believe in solving our problems ourselves, with support from trusted partners like China. This approach ensures sovereignty and strengthens regional leadership,” Tuggar said.
Strategic Africa-China Partnership
China extended its strategic support to Nigeria and Africa at large, emphasizing collaboration under the Forum on China-Africa Cooperation (FOCAC). Wang Yi promised continued support at the United Nations, where China will advocate for Africa’s interests and rights.
“China’s vote at the UN Security Council will always go to Africa. We are committed to helping Africa achieve modernization with peace and security,” Wang Yi concluded.
The series of agreements and commitments highlight the evolving China-Nigeria partnership, encompassing finance, infrastructure, and regional security. As Nigeria pursues economic diversification and self-reliance, this collaboration with China promises to accelerate its development trajectory.
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