Nigeria-China Trade Exchange: Good News for Nigerians

Following Chinese businesses’ recent decision to accept Naira over dollars in transactions with Nigerian investors, as commonly practised due to the Naira to Dollar instability, the Lagos State Chapter of the All Progressives Congress has welcomed the move, attributing it to the effectiveness of President Bola Tinubu’s economic policies.

APC commended the move in a statement signed by its spokesperson, Seye Oladejo, describing it as a bold step which represents a milestone in Nigeria’s economic diplomacy, signalling the growing global confidence in the Naira under the leadership of President Tinubu.

In the statement, APC highlighted comprehensive takeaways for Nigerians and intending investors in the Nigeria-China trade relations.

Strengthening the Naira

By reducing Nigeria’s overdependence on the US Dollar for international trade, this policy provides immediate relief for businesses, importers, and manufacturers. It also reduces pressure on the foreign exchange market and strengthens the value of the Naira, ensuring greater stability in the economy.

Boost to Bilateral Trade

China remains one of Nigeria’s largest trading partners. The ability to settle transactions directly in Naira means lower transaction costs, faster payments, and improved ease of doing business. This will make imports of essential goods, machinery, and technology cheaper while also opening wider access for Nigerian exports into Chinese markets.

Encouraging Local Production

Beyond trade facilitation, this development will encourage Nigerian producers to scale up production, knowing that their goods and services can now access one of the world’s largest consumer markets without the heavy burden of dollar dependence. This aligns with the government’s commitment to diversifying the economy and promoting non-oil exports.

Attracting Investments

China’s acceptance of the Naira will boost investor confidence globally. It sends a clear signal that Nigeria is a serious player in the global economy and that its currency is gaining international recognition. This is expected to attract new foreign direct investments into strategic sectors like infrastructure, energy, and technology.

A Step Toward a Multipolar Financial Order

This move is not just about Nigeria and China-it reflects the broader global shift toward a multipolar financial system where emerging economies assert their currencies in global trade. Nigeria is rightly taking its place in this new order, ensuring that our economy is not perpetually tied to the vagaries of a single foreign currency.

The ruling party took a swipe at the opposition figure, narrating how setbacks are often capitalised on to score political points.

The statement reads, “It must also be said that while this development brings renewed hope for Nigerians, it is a sad day for the opposition parties who thrive on bad news and setbacks. For too long, they have prayed for economic failure to score cheap political points.

“This breakthrough shatters their doomsday narrative and reinforces that under President Tinubu and the APC, Nigeria is firmly on the path to economic recovery and growth.”

In conclusion, APC congratulates President Bola Ahmed Tinubu, the Central Bank of Nigeria, and the Ministry of Finance for this visionary achievement, stressing that Nigerian businesses and households will experience a reduced forex scarcity, stronger purchasing power, and a more resilient economy.

The party tasked all stakeholders, manufacturers, traders, exporters, and financial institutions to seize the golden opportunity to seek synergy in working towards maximising the benefits of the historic breakthrough.