China considers Nigeria’s currency swap expansion, approves Panda Bonds
By Kunle Sanni
China has expressed readiness to consider Nigeria’s request to expand the bilateral currency swap agreement initially signed in 2018.
The announcement came after a meeting between Chinese Foreign Minister Wang Yi and President Bola Tinubu at Aso Rock Villa, Abuja, on Thursday.
The agreement, currently valued at CN¥15 billion (approximately ₦720 billion), aims to reduce dependence on the U.S. dollar, stabilize Nigeria’s foreign reserves, and enhance trade and investment between the two nations.
Wang stated, “Regarding Nigeria’s wish to increase the line of the currency swap, we will favorably study and consider the issue.”
The Chinese minister also encouraged Nigeria to explore issuing Panda denominated bonds in China’s domestic market—as a way to diversify funding sources.
He said, “We welcome Nigeria to issue Panda bonds in China because we have complete confidence in Nigeria’s credibility. By issuing Panda bonds, Nigeria will gain good revenue, and safety is guaranteed through financial support. This will contribute to Nigeria’s infrastructure development, particularly the railway.”
Chinese financial institutions recently supported the Phase III modernization of Nigeria’s railway system, highlighting the growing cooperation between the two nations.
China and Nigeria also rejected foreign interference in Africa’s security affairs, emphasizing African-led solutions for regional peace and stability.
Wang announced a CN¥1 billion military grant to African states, pledging to train 6,000 military personnel and 1,000 law enforcement officers across the continent.
“China will firmly support Africa in strengthening peace and security capacity building,” Wang said. “We will provide military assistance, support the African Standby Force, and back counter-terrorism and peacekeeping operations. At the United Nations Security Council, China’s vote will always go to Africa.”
Foreign Minister Yusuf Tuggar stressed Nigeria’s interest in collaborating with China to domesticate the production of military equipment.
“We want to work with countries like China in domesticating production of military equipment, both kinetic and non-kinetic. This will ensure we don’t face delays and excessive regulations when procuring equipment,” Tuggar said.
Rejecting the idea of relying on private military companies, Tuggar emphasized Nigeria’s constitutional approach to leadership in regional security, especially in West Africa and the Sahel.
