China has expressed its readiness to extend its currency swap agreement with Nigeria and supports the nation’s plan to issue panda bonds, bolstering bilateral financial relations.
During an official visit to Nigeria as part of a four-nation African tour, Chinese Foreign Minister Wang Yi emphasises the value of financial cooperation between the two countries. He is hopeful about future cooperation and acknowledges Nigeria’s request to expand the currency swap line.
“We will positively consider Nigeria’s request to expand the currency swap agreement. Our cooperation in finance continues to grow successfully,” Wang states during a press briefing in Abuja on Thursday.
China welcomes Nigeria’s intention to issue panda bonds, with Wang expressing confidence in Nigeria’s financial credibility. “We believe the issuance of panda bonds will benefit both nations,” he notes. Wang also emphasizes China’s ongoing contribution to Nigeria’s infrastructure development, particularly in rail transport projects.
The China Development Bank recently approves a $254.76 million loan for the Kano-Kaduna railway, a project led by the China Civil Engineering Construction Corporation (CCECC).
Wang’s visit follows high-level discussions, including President Bola Tinubu’s recent trip to China, which elevates the nations’ relationship to a comprehensive strategic partnership. The renewed currency swap agreement, worth 15 billion yuan ($2 billion), promotes trade and investment while encouraging the use of local currencies.
On regional security, Wang reiterates China’s commitment to supporting Nigeria at the United Nations and fostering stability in Africa.
Wang travels to Chad earlier this week to talk about more collaboration, strengthening China’s ties with the area.
