The People’s Republic of China has made a somewhat promising move by stating it will “favorably study and consider” Nigeria’s request to expand the bilateral currency swap agreement.
China’s Foreign Minister, Wang Yi, delivered the news after meeting with President Bola Tinubu at Aso Rock Villa. He emphasized China’s confidence in Nigeria’s economic credibility, urging the country to issue Panda bonds in the Chinese market. For context, Panda bonds are renminbi-denominated bonds issued by foreign entities in China, a supposedly attractive option for diversifying funding and accessing China’s liquidity. I actually see this as another way to deepen Nigeria’s dependency on foreign financial systems.
The original currency swap deal, signed in 2018 between the People’s Bank of China and the Central Bank of Nigeria, was valued at CN¥15 billion, then about ₦720 billion (roughly $2.5 billion). Its lofty promises of reducing reliance on the US dollar and stabilizing Nigeria’s foreign reserves have been met with mixed results. If this expansion goes forward, can Nigerians expect better outcomes?
Wang was quick to highlight the supposed benefits of the ongoing financial collaboration, pointing to Chinese banks’ funding of Nigeria’s railway modernization projects. According to him, Phase III of this project has been delivered, but critics might argue that these developments often prioritize China’s interests more than Nigeria’s. “The currency swap agreement shows how well we have carried out our financial cooperation,” Wang declared, praising the “momentum” of the partnership
Wang tagged Nigeria’s potential benefits from issuing Panda bonds, stating, “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 the railway.” The minister didn’t stop there, also lauding Nigeria’s role as a regional leader in Africa, particularly within ECOWAS and the Sahel region.
Beyond financial cooperation, Wang took the opportunity to reiterate China’s commitment to African-led solutions for peace and security, pledging a CN¥1 billion military assistance package. This includes training 6,000 military personnel and 1,000 law enforcement officers across Africa, alongside supporting the African Standby Force and counterterrorism initiatives. While the gesture might sound kind, Nigerians question whether China’s involvement in African security matters is truly altruistic or a strategic play for deeper influence on the continent.
Nigeria’s Foreign Minister, Yusuf Tuggar, also chimed in, rejecting reliance on private military companies for security solutions and expressing a desire to domesticate military equipment production with China’s assistance. Tuggar emphasized Nigeria’s leadership in West Africa and dismissed foreign intervention as a viable option. “Let us work together towards solving our problems by ourselves,” Tuggar said, advocating for a self-reliant approach to tackling Nigeria’s challenges.
