The oil-rich West African nation is to use the cash to build roads, four airports and a light rail system in Abuja, according to reports.
The agreement was signed between Nigerian President Goodluck Jonathan and his Chinese counterpart Xi Jinping in Beijing on Wednesday.
News wire AFP cited Xi as saying both countries had a common task of pursuing national development.
“As a proverb of Nigeria reads: ‘A man cannot sit down alone to plan for prosperity,'” he was quoted as saying.
China is increasingly striking deals in Africa as it looks to guarantee mineral imports to feed its growing economy. As Africa’s largest crude-oil producer, China is already an important market for Nigeria.
However, with the advent of the shale gas boom in the US, crude exports to North America have dwindled which will like see the Chinese market assume even greater significance for Nigeria.
*Eoin O’Cinneide, News Wires