Nigeria and China discuss direct naira-yuan trade settlement

Central Bank of Nigeria (CBN) Governor Olayemi Cardoso and People’s Bank of China Governor Pan Gongsheng have held talks regarding strengthened cross-border payment arrangements. The discussions focused on settlement arrangements, financial technology, and trade finance to facilitate smoother commercial flows between the two nations.

Nigeria is seeking to reduce its dependence on the US dollar for trade with China. By exploring naira-denominated investment instruments and direct settlement channels, Nigerian importers aim to mitigate the costs and delays associated with dollar conversion. This follows previous agreements, including a 2016 Yuan transaction agreement and a 2018 currency swap line between the two central banks.