New Zealand is giving Nauru a $2 million anniversary present, Foreign Minister Winston Peters has announced.
The island marks 50 years of independence on Wednesday and Mr Peters says New Zealand has long-standing historical connections.
Before it became independent in 1968, Nauru was under a UN mandate with Australia, Britain and New Zealand as trustees.
The money will go to the Nauru Intergenerational Trust Fund set up to provide future generations with revenue to invest in education, health and infrastructure.
Nauru has a population of just over 13,000.