The strong diplomatic ties between Nigeria and China have once again been strengthened, benefitting various sectors of both nations’ economies for mutual advantage.
This development became evident during the visit of Chinese Minister of Foreign Affairs Wang Yi to Nigeria, where discussions focused on implementing the ten partnership actions agreed upon at the September 2024 Forum on China-Africa Cooperation (FOCAC) in Beijing.
Ambassador Yi was at the Presidential Villa in Abuja on Thursday where he met President Bola Tinubu and pledged his country’s commitment to strengthen financial ties with Nigeria by expanding the existing currency swap agreement and supporting the issuance of Panda bonds, in a move expected to boost trade and infrastructure development with Nigeria.
Ambassador Yi described the plans as part of a broader commitment to enhancing financial cooperation with Nigeria, saying “The currency swap agreement shows how well we have carried out our financial cooperation and sustained its momentum.”
“Regarding Nigeria’s request to increase the currency swap line, we will study the issue favorably. Our cooperation is progressing well in many areas, including finance.”
LEADERSHIP Sunday reported that the Chinese Minister also reiterated China’s support for Nigeria’s plan to issue Panda bonds, highlighting that these bonds would offer Nigeria a stable revenue source and guaranteed security through Chinese financial backing.
Panda bonds are renminbi-denominated debt securities issued by non-Chinese entities in China’s domestic bond market, offering foreign governments and corporations access to China’s vast investor base.
“We welcome Nigeria to issue Panda bonds in China because we have full confidence in Nigeria’s credibility.
By doing so, Nigeria will gain good revenue, and safety will be guaranteed through our financial support,” Wang Yi added.
Beyond financial cooperation, China reaffirmed its role in Nigeria’s infrastructure development, particularly in railway modernization as Yi underscored the completion of the third phase of Nigeria’s railway modernisation project, financed by Chinese banks, as an example of their shared progress.
“Just a few days ago, Chinese banks supported the building of phase three of the railway modernisation project, which has now been delivered. Projects like the Kano-Kaduna railway demonstrate our commitment to Nigeria’s infrastructure development,” he said.
While meeting with Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar in Abuja on Thursday, Wang Yi said that Nigeria plays an irreplaceable and important role in Africa’s peace and development, adding that his country will continue to engage Nigeria for mutual benefits.
He said: “Nigeria is a major African country with global influence. It is an important member of the global South. As we work for Africa’s peace and development, Nigeria plays an irreplaceable and important role.”
He was optimistic that the meeting will produce new common understandings between both countries, stressing that both countries will continue to understand and support each other on issues concerning their respective core interests in pursuit of development and vitalisation for mutual benefit.
“Last year our two sides agreed to elevate our relations to a comprehensive strategic partnership, ushering in new and brighter prospects for our relations. Nigeria made important contributions to the success of the FOCAC Beijing Summit and China commended,” he added.
Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar in his reaction assured of the country’s commitments to the terms of the Memorandum of Understandings reached with China during the FOCAC meeting in Beijing.
Tuggar added that the MoUs are currently at various stages of implementation even as he expressed continued support for China, including the One China Principle.
He said “Our cooperation has yielded fruitful results in various fields including trade, investment, infrastructure development, and cultural exchange. As we explore new avenues for collaboration, I wish to acknowledge China’s remarkable progress in economic development, technological innovation, and global leadership.
“Nigeria, too, is undergoing significant transformations driven by our vision to become a more prosperous, peaceful, and egalitarian nation.
“Consequently, during our discussions, I look forward to exploring avenues to deepen our bilateral engagement, particularly in areas such as trade facilitation, capacity building, and people-to-people exchanges.
“I am confident that our deliberations will yield meaningful outcomes in fostering a brighter future for our nations and our peoples.
“Your Excellency would always be certain of Nigeria’s commitment to supporting the One China Principle and assured of our continued support for China at the international stage.
“The almost intuitive nature of Nigeria’s diplomatic relationship and continuous collaboration with China has been devoid of disputes, bringing about substantial benefits to both countries.
“In addition, Nigeria recognises and appreciates the high-level visits between the officials of the two countries that have helped in shaping and strengthening this existing relationship between both countries.”
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