China considers Nigeria’s request to expand currency swap deal

• China signals readiness to consider Nigeria's request to expand its CN¥15 billion bilateral currency swap agreement
• Foreign Minister Wang Yi invited Nigeria to issue renminbi-denominated Panda bonds in China’s domestic market to raise revenue for infrastructure projects
• China pledges continued support for Africa’s interests at the United Nations, aligning with its role as the second-largest peacekeeping contributor

China has indicated its willingness to review Nigeria’s proposal to expand its bilateral currency swap agreement. 

The development was disclosed by Chinese Foreign Minister Wang Yi during a briefing at the Presidential Villa in Abuja following his meeting with President Bola Tinubu.

The initial currency swap agreement, signed in 2018 between the People’s Bank of China and the Central Bank of Nigeria, was valued at CN¥15 billion (approximately N720 billion or US$2.5 billion at the time). 

The deal was designed to reduce Nigeria’s dependency on the US dollar, bolster foreign reserves, and enhance trade and investment ties between the two nations.

Wang highlighted the positive trajectory of financial cooperation between the countries and encouraged Nigeria to explore issuing Panda bonds in China’s financial markets. 

Panda bonds are renminbi-denominated bonds issued by foreign entities in China’s domestic bond market. 

These bonds provide foreign issuers access to China’s liquidity and investor base while allowing Chinese investors to diversify their portfolios without currency conversion risks.

The Chinese Foreign Minister emphasised that Nigeria could use revenue from Panda bonds to support infrastructure projects, particularly in railway modernisation. 

He noted that financial backing would ensure the safety and efficiency of these endeavours.

“The currency swap agreement reflects the robust financial cooperation between our nations. We welcome Nigeria’s interest in issuing Panda bonds, as we are confident in Nigeria’s credibility. This step will generate revenue and contribute to critical infrastructure projects such as railway modernisation.” Wang said.

Wang also commended Chinese banks for their financial support of Phase III of Nigeria’s railway modernisation project, which he described as a testament to the growing collaboration between both countries.

Nigeria and China also reaffirmed their commitment to African-led solutions for regional peace and security, rejecting external interference in Africa’s affairs. 

Wang announced a CN¥1 billion military assistance package for Africa, which includes training 6,000 military personnel and 1,000 law enforcement officers. 

The initiative also supports the African Standby Force and rapid response forces for counterterrorism and peacekeeping operations.

“China will continue to assist Africa in building its capacity for peace and security. We will implement the Global Security Initiative and provide tangible support to African nations to maintain stability and safeguard their legitimate interests,” Wang said. 

At the United Nations, Wang pledged China’s continued advocacy for Africa’s concerns, emphasising China’s role as the second-largest contributor to global peacekeeping efforts.

Acknowledging Nigeria’s leadership role as ECOWAS chair, Wang lauded the country’s efforts in maintaining stability in West Africa and the Sahel region. 

He expressed China’s readiness to support Nigeria in fostering regional peace through reconciliation and cooperation.

Nigeria’s Foreign Minister, Yusuf Tuggar, echoed Wang’s sentiments, emphasising Nigeria’s preference for self-reliance in addressing security challenges. 

Tuggar dismissed reliance on private military companies and instead advocated for domestic production of military equipment with China’s assistance.

“We aim to domesticate the production of military equipment to address our challenges efficiently.

“Nigeria is committed to solving its problems independently while fostering partnerships with nations like China to achieve long-term solutions,” Tuggar stated. 

The discussions between Nigeria and China underscore their shared vision of deepening economic and security ties. 

Both nations remain committed to leveraging their partnership to address regional challenges and foster sustainable development.

Nigeria partners with Chinese company to produce electric tricycles, others

Meanwhile, TheRadar earlier reported that the Federal Government and Mutual Commitment Company Limited, a company from China, signed a Memorandum of Understanding (MoU) on electric tricycle assembly and the creation of a renewable energy training facility.

The agreement aims to support Nigeria’s energy access expansion and job creation, aligning with President Bola Tinubu’s Renewed Hope Agenda.