China is tightening its grip on Africa’s most populous market as it approves new funding after a $24.6 billion infrastructure bet

Africa’s largest bilateral official lender, China, recently approved a grant of RMB200 million ($27.8 million) to assist Nigeria's economic growth and finance jointly agreed-upon projects.

• China recently granted Nigeria RMB200 million ($27.8 million) to boost economic growth and support joint projects.
• The grant is part of China's broader effort to strengthen its partnership and economic ties with Nigeria, which has spanned 55 years.
• China's direct investment in Nigeria reached $690 million in 2025, a 103% increase from the year before, with major funding in infrastructure sectors.
• Despite notable investments, Chinese capital inflows into Nigeria dropped by nearly 41% in Q1 2026 compared to the previous year.

The Chinese Ambassador to Nigeria, Yu Dunhai, made the announcement during a meeting with Dunoma Ahmed, Permanent Secretary of Nigeria's Ministry of Foreign Affairs, on Wednesday.

According to the Chinese ambassador, the grant is a component of Beijing's larger commitment to bolstering Nigeria's growth and enhancing economic ties between the two nations.

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The envoy emphasized the depth of China-Nigeria relations, stating that the two nations have had diplomatic connections for 55 years.

He hailed the partnership as an important part of China's overall involvement with Africa, as seen on Channels.

Yu stated that Beijing would continue to cooperate with Abuja to guarantee that the benefits of their developing collaboration reach both nations' populations directly.

Ahmed hailed the Chinese government's most recent financial assistance, calling it proof of Beijing's ongoing commitment to Nigeria's economic and social growth.

Nigeria and China

Nigeria and China have had diplomatic ties for 55 years, with their collaboration set to become a Comprehensive Strategic Partnership in 2024.

Chinese direct investment in Nigeria reached $690 million in 2025, a 103% increase over the previous year.

China is a significant infrastructure partner, funding projects in transportation, energy, and ports.

The relationship also includes increased diplomatic collaboration through the China-Nigeria Intergovernmental Committee and obligations under the FOCAC.

Earlier this year, during a seminar in the Chinese capital, Beijing, attended by prominent Nigerian government officials and media figures, Nigeria was touted as one of China's premier markets for engineering and construction on the African continent, boasting the title of the largest engineering contracting market in Africa.

A few months prior, Nigeria opened conversations on a $5.7 billion investment from China to strengthen its power, mining, and manufacturing sectors, according to the Ministry of Finance.

Also during the year, the Nigerian government disclosed that conversations with Chinese businessmen had resulted in investment commitments totaling more than $20 billion.

This came as the West African country also looked to hand over the rehabilitation of its rundown refinery to Chinese investors.

A recent report by the Nigerian Bureau of Statistics showed that China's capital inflows into Nigeria fell dramatically in the first quarter of the year.

The Bureau highlighted that capital imports from China fell to $5.55 million in Q1 2026, down from $9.39 million the previous year, showing a 40.89% year-on-year fall.

Last year, Nigeria emerged as the largest single beneficiary of China's Belt and Road Initiative (BRI) in 2025, following an estimated $24.6 billion construction commitment tied to the Ogidigben Gas Revolution Industrial Park (GRIP) in Delta State, marking one of Africa's largest China-backed infrastructure deals this year.