By Jemimmah Wellington, JKNewsMedia Reporter
AIMING TO bolster economic ties, the Chinese government has approved Nigeria’s request to expand its currency swap line while supporting the issuance of Panda bonds to finance infrastructure projects and stabilise revenue streams.
This commitment reflects China’s growing financial cooperation with Nigeria, aligning with broader efforts to boost trade, investment, and economic growth.
Officials say these measures will create new opportunities for infrastructure development and financial security.
The announcement came during the Chinese Foreign Affairs Minister Wang Yi’s visit to the Presidential Villa, Abuja.
He stressed the importance of Nigeria’s financial credibility in facilitating the bond issuance and confirmed China’s readiness to deepen collaboration on key projects, particularly railways.
The currency swap arrangement aims to ease trade transactions between the two nations by reducing dependence on the US dollar.
Wang Yi emphasised China’s openness to increasing the swap line to support Nigeria’s economic policies, describing the ongoing financial cooperation as robust and mutually beneficial.
He noted significant progress in infrastructure collaboration, such as the completion of phase three of Nigeria’s railway modernisation project, funded by Chinese banks.
The project forms part of a larger plan to enhance connectivity and support economic growth, with projects like the Kano-Kaduna railway receiving substantial backing from the China Development Bank.
Wang Yi affirmed China’s trust in Nigeria’s financial stability, noting, “By issuing Panda bonds, Nigeria will gain good revenue, and safety is guaranteed through our financial support.
“We are also committed to advancing Nigeria’s infrastructure development, particularly in railways.”
He explained that the Panda bonds, denominated in renminbi and issued in China’s bond market, provide Nigeria with access to China’s vast investor base.
He also said the financial tool offers a strategic pathway for addressing budget deficits and funding capital-intensive infrastructure projects.
The railway modernisation project, cited as a flagship example of Sino-Nigerian cooperation, according to Wang Yi asserts the role of Chinese funding in driving Nigeria’s long-term development objectives.
