China Pledges to Strengthen Financial Ties with Nigeria, Expands Currency Swap and Supports Panda Bonds
China has reaffirmed its commitment to strengthening financial ties with Nigeria by expanding the existing currency swap agreement and supporting the issuance of Panda Bonds—a move expected to enhance trade, infrastructure development, and financial cooperation between the two nations.
The announcement was made by China’s Foreign Minister, Wang Yi, during a press briefing at the Presidential Villa in Abuja on Thursday. Wang Yi had earlier met with President Bola Tinubu, where both leaders discussed further enhancing bilateral relations.
Wang Yi described the expanded currency swap agreement as a symbol of the growing financial cooperation between China and Nigeria. He expressed confidence that this development would continue to strengthen their economic ties.
“We have seen good progress in the implementation of the currency swap agreement, and this expansion will further enhance our cooperation,” Wang Yi stated. “Regarding Nigeria’s request to increase the currency swap line, we will study it favorably. Our cooperation is progressing well in many areas, including finance.”
Wang Yi also announced China’s full support for Nigeria’s plan to issue Panda Bonds—renminbi-denominated debt securities issued by non-Chinese entities in China’s domestic bond market. Panda bonds provide foreign governments and corporations with access to China’s vast investor base.
“We welcome Nigeria’s intention to issue Panda bonds in China. We have full confidence in Nigeria’s credibility, and this will provide a reliable source of revenue for the country,” Wang Yi added. “Through our financial backing, the safety of Nigeria’s investments will be guaranteed, and the bonds will be an important resource for Nigeria’s economic development.”
China’s support for Nigeria also extends beyond financial matters. Wang Yi reaffirmed China’s commitment to Nigeria’s infrastructure development, particularly in railway modernization. He highlighted the successful completion of the third phase of Nigeria’s railway modernization project, which was funded by Chinese banks, as a significant example of their ongoing collaboration.
“Just a few days ago, Chinese banks supported the building of phase three of the railway modernization project, which has now been delivered. The Kano-Kaduna railway is one of the key projects that demonstrate our commitment to Nigeria’s infrastructure development,” Wang Yi said.
Nigeria’s Foreign Affairs Minister, Yusuf Tuggar, also underscored the importance of the partnership, particularly in the area of military cooperation. He emphasized Nigeria’s interest in collaborating with China to localize military equipment production, a step that would eliminate delays and bypass the complexities of international regulations.
“This collaboration will help us address our security needs more effectively and efficiently, and is a crucial step toward self-reliance in our defense capabilities,” Tuggar stated.
Both nations expressed a shared vision for regional stability. Tuggar reiterated Nigeria’s leadership role in West Africa and affirmed that Nigeria would continue to rely on strong partnerships like China to address external challenges, particularly foreign interference.
The expanded currency swap and Panda bond initiatives are expected to provide Nigeria with significant financial relief and promote mutual growth between the two nations. These developments are also seen as an important step toward deepening the Nigeria-China relationship, following the 2019 Memorandum of Understanding on military cooperation and other strategic areas.
As the two nations continue to strengthen their economic, infrastructural, and defense ties, this partnership is set to play a key role in Nigeria’s economic growth and development.
