The Central Bank of Nigeria (CBN) has described the Nigeria-China currency swap deal as a transformative policy instrument that could significantly reduce shipping costs, enhance trade efficiency, and ease foreign exchange pressure in Nigeria\u2019s maritime industry.<\/p>\n
Speaking at a stakeholders\u2019 breakfast meeting organized by the Maritime Reporters\u2019 Association of Nigeria (MARAN) in Lagos on Tuesday, the CBN Governor, Mr. Olayemi Cardoso, stated that the agreement\u2014originally signed in 2018 and recently renewed in December 2024\u2014enables Nigerian and Chinese businesses to conduct trade directly in naira and renminbi, bypassing the U.S. dollar.<\/p>\n
\u201cThe swap agreement simplifies the settlement of trade transactions in local currencies and reduces the pressure on Nigeria\u2019s dollar reserves. This, in turn, lowers the cost of doing business and enhances the competitiveness of Nigerian trade,\u201d Cardoso said.<\/p>\n
The CBN Governor who was represented by Mr Anthony Ogufere, Special Adviser to CBN Governor on Finance and Strategy noted that China had become Nigeria\u2019s largest trading partner by the end of 2024, accounting for about 35% of total imports and reaching a trade volume of $11.58 billion. He added that the maritime sector, which handles the majority of Nigeria\u2019s import and export activities, stands to benefit immensely through faster port clearance, improved trade finance instruments, and direct shipping links such as the Lekki Deep Sea Port\u2014a Chinese-backed infrastructure project under the Belt and Road Initiative.<\/p>\n
However, the CBN Governor acknowledged that several challenges still hinder the full potential of the currency swap framework. Chief among them is Nigeria\u2019s significant trade imbalance without China and the limited adoption of yuan-denominated transactions by Nigerian businesses. He called for greater sensitization, policy coordination, and efforts to expand non-oil exports to China.<\/p>\n
Also speaking at the event, Mr. Martins Olajide, a representative of the Nigeria-China Strategic Partnership, presented a paper that offered a more cautious outlook. He noted that while the swap deal provides short-term relief and smoother trade operations, it is not a sustainable solution to the naira\u2019s persistent depreciation.<\/p>\n
Describing the swap arrangement as \u201cswapization,\u201d Olajide warned that Nigeria\u2019s economic vulnerability and dependence on imports\u2014especially from China\u2014undermines The true impact of the agreement. He emphasized the need for structural reforms, particularly in industrialization, value addition, and local production.<\/p>\n
\u201cWithout these changes, the swap deal may only reinforce economic dependence on China without solving the underlying issues,\u201d he said.<\/p>\n
In his opening remarks, the Chairman of the event and Chairman of the Customs Consultative Council (CCC), Aare Akeem Olarenwaju, decried the volatility of the naira-dollar exchange rate as a major cause of the skyrocketing cost of goods in Nigeria. He called for greater public awareness of alternative currency options like the Chinese yuan.<\/p>\n
\u201cYou can\u2019t determine the price of goods within a few hours due to constant exchange rate changes. Today it\u2019s \u20a61,600 to a dollar, and in the next few hours, it could be \u20a61,700 or \u20a61,500. It\u2019s the common people who suffer the most,\u201d Olarenwaju lamented.<\/p>\n
He commended the organizers for opening up conversations around trade, currency, and maritime development, urging media professionals to help educate the public on alternatives that could reduce the nation\u2019s dependence on the U.S. dollar.<\/p>\n
Earlier in his welcome address, MARAN President, Mr. Godfrey Bivbere, reaffirmed the association\u2019s commitment to promoting dialogue on key economic issues. While acknowledging the swap deal\u2019s promise in reducing transaction costs and enhancing trade efficiency, Bivbere stressed the need for a balanced discourse.<\/p>\n
\u201cWe are not only here to applaud progress but also to interrogate policy. We must understand both the positive impact and the underlying risks associated with China\u2019s expanding economic footprint in Nigeria,\u201d he said.<\/p>\n
Bivbere urged stakeholders across the maritime, trade, and financial sectors to approach the Nigeria-China currency swap with critical insight, noting that sustainable benefits would only come through policies that protect national economic interests while encouraging growth and competitiveness.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Central Bank of Nigeria (CBN) has described the Nigeria-China currency swap deal as a transformative policy instrument that could significantly reduce shipping costs, enhance trade efficiency, and ease foreign exchange pressure in Nigeria\u2019s maritime industry. Speaking at a stakeholders\u2019 breakfast meeting organized by the Maritime Reporters\u2019 Association of Nigeria (MARAN) in Lagos on Tuesday, […]<\/p>\n","protected":false},"author":2,"featured_media":7683,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news"],"_links":{"self":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/7680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/comments?post=7680"}],"version-history":[{"count":1,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/7680\/revisions"}],"predecessor-version":[{"id":7684,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/7680\/revisions\/7684"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/media\/7683"}],"wp:attachment":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/media?parent=7680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/categories?post=7680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/tags?post=7680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}