China, Nigeria renew currency swap to boost relations

The People’s Republic of China is considering a currency swap agreement with Nigeria to bolster financial cooperation between the two nations.

The proposal was announced by China’s foreign minister, Wang Yi, after a closed-door meeting with President Bola Tinubu and Foreign Affairs Minister, Yusuf Tuggar in Abuja.

Mr. Wang expressed China’s confidence in Nigeria’s economic credibility, noting that the issuance of Panda Bonds in China would provide Nigeria with significant revenue while ensuring financial security.

He explained that the bonds would aid Nigeria’s infrastructure projects, particularly in railway development.

“And by issuing panda bonds, Nigeria will gain good revenue and the safety is guaranteed through financial support, we are working to contribute to Nigeria’s infrastructure development in particular railway”, he said.

China also pledged further support to Africa’s peace and security efforts, Mr. Wang announced a grant of one billion Yuan in military assistance, plans to train 6,000 military personnel, 1,000 police officers, and support for the establishment of the African Standby Force and Rapid Response Forces.

Nigeria’s Minister of Foreign Affairs, Ambassador Yusuf Tuggar reaffirmed Nigeria’s commitment to regional stability and working with partners like China to address emerging challenges.

The minister noted that Nigeria’s interest in collaborating with China to domesticate military equipment production would reduce reliance on imports,

The partnership reflects in China and Nigeria’s pivotal role in maintaining peace and stability in West Africa and the Sahel region. Both nations aim to foster regional unity, reconciliation, and cooperation to achieve lasting peace and stability.