FG Secures $30 Million Chinese Grant for Grassroots Development Projects
- Nigeria secured a $30 million Chinese grant for grassroots projects aimed at reducing poverty and improving living conditions
- Funding will support community-led development under China’s Small but Beautiful initiative and Nigeria’s plan for all 8,809 wards
- China said trade with Nigeria reached $18 billion in the first half of 2026, with Nigerian exports rising by 80%
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Government has secured a $30 million (approximately ₦43 billion) grant from China to finance grassroots development projects aimed at reducing poverty, improving living conditions and creating economic opportunities for Nigerians.
The agreement, valued at RMB200 million, was signed on Thursday, October 29, 2026, at the Federal Ministry of Budget and Economic Planning in Abuja.
Source: Getty Images
In a statement released on Sunday, the ministry said the funding would support community-based projects under the Nigeria-China Development Cooperation framework.
Communities to benefit from Chinese grant
The grant will finance projects under China's Small but Beautiful initiative, which focuses on affordable, community-driven interventions that deliver direct benefits to residents.
The initiative is expected to address pressing development needs in underserved communities, including access to essential infrastructure and economic opportunities, according to a Punch report.
Although specific projects and beneficiary communities have not been announced, the funding could support interventions identified by state governments.
Minister of Budget and Economic Planning, Abubakar Bagudu, said the partnership would strengthen Nigeria's development priorities through targeted investments, knowledge sharing and institutional cooperation.
He disclosed that the ministry was collaborating with the Nigeria-China Strategic Partnership Office to identify and develop projects proposed by state governments.
FG targets development across 8,809 wards
Bagudu linked the agreement to the Federal Government's Renewed Hope Ward Development Plan, designed to identify economic opportunities and economically active residents across Nigeria's 8,809 wards.
According to him, the programme will help authorities identify communities requiring urgent interventions while improving the effectiveness of government development initiatives.
He stressed that international agreements must translate into measurable improvements in citizens' living standards rather than remain diplomatic commitments.
The minister also highlighted China's experience in poverty reduction, noting that Nigeria could benefit from technical assistance, knowledge transfer and training opportunities.
The latest agreement follows an earlier $1 million Chinese contribution in 2026 to strengthen Nigeria's technological and knowledge development capacity.
Source: Getty Images
China reveals $18bn trade with Nigeria
Speaking during the signing ceremony, Chinese Ambassador to Nigeria, Yu Dunhai, described the grant as another demonstration of Beijing's commitment to Nigeria's economic and social development.
He explained that the agreement followed commitments reached between Presidents Bola Tinubu and Xi Jinping during their meeting in China and subsequent bilateral engagements.
Dunhai disclosed that trade between the two countries reached $18 billion in the first half of 2026, while Nigerian exports to China increased by 80%.
The agreement comes as Nigeria and China celebrate 55 years of diplomatic relations, with both countries seeking deeper cooperation in infrastructure, investment, trade and poverty reduction.
For communities awaiting basic infrastructure and improved livelihoods, attention will now shift to project selection, implementation timelines and how quickly the grant translates into tangible benefits
World Bank signs $500m loan deal with Nigeria
Legit.ng earlier reported that the World Bank has signed a $500 million loan agreement with Nigeria, making access to the funds conditional on the federal government meeting economic reform targets and maintaining an adequate macroeconomic policy framework.
Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele signed the agreement on October 6, 2026, on behalf of Nigeria.
Source: Legit.ng
