The Chinese government has endorsed Nigeria’s request to expand the currency swap line and supported the country’s plan to issue Panda bonds.
This endorsement highlights China’s commitment to deepening financial cooperation with Nigeria, fostering increased trade and investment between the two nations.
The Chinese Foreign Affairs Minister, Wang Yi, said this at the Presidential Villa, Abuja on Thursday, while responding to questions from State House Correspondents after meeting with President Bola Tinubu.
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The Chinese government said; “approval of the bonds will help Nigeria gain good revenue while more safety will be guaranteed through its financial support.”
Infrastructure Development
Wang Yi, stated that “the Chinese government is further working to contribute to Nigeria’s infrastructure development specifically in railway.
“The currency swap agreement shows how well we have carried out our financial cooperation and sustained its momentum. About 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.”
“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 safety is guaranteed through financial support, we are working to contribute to Nigeria’s infrastructure development, particularly railways,” he explained.
Foreign Affairs Minister reaffirmed China’s comprehensive support for Nigeria, noting that “Chinese banks have successfully delivered financial funding to Nigeria for the construction of the third phase of the railway modernisation project.”
“Just a few days ago, Chinese banks supported through financial funds, the building of phase three of the railway modernization project, and it has been delivered. So there are many details that are taking place between our cooperation, overall, our cooperation is comprehensive, and we would Like to further boost it, ”he added.
The Chinese bank’s support for Nigeria in phase three of the railway modernization project is part of the support for broader efforts to enhance Nigeria’s infrastructure, such as seen in projects like the Kano-Kaduna railway, which has received significant funding from the China Development Bank.
Nigeria has been considering issuing Panda bonds in China as a means to raise funds, particularly to address budget deficits and finance infrastructure projects.
Panda bonds are renminbi-denominated bonds issued by non-Chinese entities in China’s onshore bond market.
This financial instrument offers foreign governments and corporations a direct course to tap into China’s vast investor base.
Mercy Chukwudiebere
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