The Central Bank of Nigeria (CBN) has described the Nigeria-China currency swap agreement as a key policy that could lower shipping costs, improve trade efficiency, and ease foreign exchange pressures in Nigeria’s maritime sector.
Speaking at a stakeholders’ meeting organised by the Maritime Reporters’ Association of Nigeria (MARAN) in Lagos, CBN Governor Olayemi Cardoso stated that the deal allows Nigerian and Chinese businesses to trade directly in naira and yuan, bypassing the US dollar.
The agreement, first signed in 2018, was renewed in December 2024.
Represented by Anthony Ogufere, Special Adviser to the CBN Governor on Finance and Strategy, Cardoso explained that the swap simplifies trade settlements in local currencies, reduces pressure on Nigeria’s dollar reserves, and lowers business costs.
China is now Nigeria’s largest trading partner, accounting for 35% of total imports, with bilateral trade reaching $11.58 billion by the end of 2024.
The maritime sector, handling most of Nigeria’s import and export activities, stands to benefit from faster port clearances, improved trade financing, and direct shipping links like the Chinese-backed Lekki Deep Sea Port.
However, Cardoso acknowledged challenges, including Nigeria’s trade imbalance with China and limited adoption of yuan transactions by local businesses.
He called for greater awareness, policy coordination, and efforts to boost non-oil exports to China.
Martins Olajide of the Nigeria-China Strategic Partnership offered a more cautious view, warning that the swap deal provides only short-term relief and does not address the naira’s depreciation.
He described the arrangement as “swapization,” stressing that without structural reforms—such as industrialisation and local production—Nigeria risks deepening its economic dependence on China.
Aare Akeem Olarenwaju, Chairman of the Customs Consultative Council (CCC), criticised the naira’s volatility against the dollar, which has driven up goods prices.
He urged greater public awareness of alternative currencies like the yuan.
MARAN President Godfrey Bivbere emphasised the need for balanced discussions on the swap deal, acknowledging its potential benefits while calling for policies that safeguard Nigeria’s economic interests.
The event highlighted both the opportunities and risks of Nigeria’s growing economic ties with China, stressing the need for sustainable solutions to strengthen the naira and reduce import dependency.
