China has expressed willingness to expand its currency swap agreement with Nigeria and support the issuance of panda bonds.
Chinese Foreign Minister Wang Yi emphasized that the currency swap deal showcases the strong financial cooperation between both nations.
Wang Yi made the announcement on Thursday in Abuja during his visit to Nigeria, that China is open to expanding its currency swap agreement and supporting the issuance of panda bonds.
The visit, part of a four-nation African tour, underscores Beijing’s efforts to deepen its influence and strengthen ties across the continent.
He stated, “As with regard to Nigeria’s wish to increase the line of the currency swap, we will favourably study and consider the issue. Our cooperation is going well in many ways, in terms of finance.”
Wang Yi also expressed China’s confidence in Nigeria’s economic credibility and welcomed the country’s plans to issue panda bonds in the Chinese financial market.
“For instance, we welcome the panda bonds to be issued. We welcome Nigeria to issue panda bonds in China because we have full confidence in Nigeria’s credibility. 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, the railway,” he stated.
Wang Yi’s visit to Nigeria builds on recent high-level engagements, including intergovernmental committee talks in Beijing last June and President Bola Tinubu’s state visit to China in September.
These discussions have elevated Nigeria-China relations to a “comprehensive strategic partnership,” Wang Yi announced during a press conference.
Meanwhile, the China Development Bank has approved a $254.76 million loan on January 8 to support the construction of Nigeria’s Kano-Kaduna railway project.
The project is being executed by the China Civil Engineering Construction Corporation (CCECC) with funding from the CDB to boost infrastructure development.
A currency swap line is an agreement between two central banks to exchange currencies, facilitating trade and investment without relying on a third-party currency. Panda bonds, on the other hand, are yuan-denominated securities issued by foreign entities in China.
Recently, China and Nigeria renewed their currency swap agreement, valued at 15 billion yuan (about $2 billion), aimed at boosting trade and investment between the two countries.
