Stakeholders at the Maritime Reporters Association of Nigeria, MARAN Breakfast Meeting held on Tuesday April 15, 2025 have described the ‘Nigeria-China Currency Swap’ as a welcome development that would ease trade between the two nations.
The Nigeria-China Currency SWAP Deal pursues the use of the currency of both countries, Naira and Renminbi for trade transactions, against the United States of America, USA dollar. This, stakeholders at the meeting unanimously agreed will reduce transaction cost and time.
The SWAP backed by the Central Banks of both countries; the Central Bank of Nigeria and the People’s Bank of China was signed in 2018 and renewed in December 2024.
Setting the tone for the discourse, the CBN Governor, Mr. Olayemi Cardoso, represented by his Special Adviser on Finance and Strategy, Mr. Anthony Ogufere, speaking on the theme of the day “Navigating the Nigeria-China Currency Swap: Opportunities and Challenges for Import, Export, and Maritime Business”, he noted that major imports into Nigeria come from China, hence, the need for a currency swap that will aid trade efficiency.
China, according to him, accounts for 35 percent of imports into the country, therefore a Nigeria-China Currency Swap Deal, an initiative of the CBN will reduce transaction cost by ensuring businesses between the two countries are carried out using their local currencies.
In his welcome address at the meeting the President of MARAN, Mr. Godfrey Bivbere, noted that the dialogue is coming at a pivotal moment in Nigeria’s economic landscape.
He further noted that the SWAP has the potential for reduced transaction costs, increased trade volumes, and would create pathways to enhanced economic cooperation with a major global partner.
Representative of the Managing Director of the Nigeria Ports Authority, NPA, Port Manager, Lagos Port Complex, Mr. Adebowale Lawal, in a goodwill message appreciated MARAN for coming with such a timely topic that would boost trade facilitation.
He however, queried why the dollar exchange rate remains the benchmark for transactions within the SWAP Deal.
Ogufere, in his response, said the dollar exchange rate is being used in the interim as a notional anchor to help, with a view of adjustments when there is a lot of trade and settlements, just as Nigeria gradually adjusted from pound sterling to dollar.
On his part, the Executive Secretary of the Nigeria Shippers Council, NSC, Barr. Pius Akutah, described the SWAP as a welcome initiative because its benefits outweigh the demerits.
He called for an extended forum on the topic involving the Manufacturers Association of Nigeria, MAN and Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA “because we’re considering using this initiative for capital projects such as infrastructure development, vessel acquisition whether in Agriculture or maritime sectors.”
He pointed out that China has taken over from South Korea as the largest manufacturer of vessels (ships) to the extent that even South Korea goes to China for purchase of small vessels as well as ship repairs.
Akujobi, therefore lauded this CBN initiative and implored all and sundry to spread the message, as he harped on increased awareness and sensitisation through the media.
Also speaking, the National Secretary of
the National Association of Government Approved Freight Forwarders, NAGAFF,
Fwdr. Godfrey Emeka Nwosu, representing the National President of the Association, High Chief Tochukwu Ezisi,
emphasized that a currency swap between Nigeria and China has far-reaching implications for transaction costs, trade volume, and the operational dynamics of various business sectors, including importers, exporters, and maritime businesses.
In a decisive breakdown of these potential effects, he said there will be
a significant reduction in Foreign Exchange (FX) Conversion Costs as
Nigeria and China will directly exchange goods and services using their local currencies (Naira and Renminbi) which ends in decreased costs associated with currency conversions.
He added that it will boost trade efficiency and growth, hence, a resultant
increase in trade volume as businesses can engage in cross-border trade with remarkable efficiency.
Nwosu also noted that the initiative will generally impact maritime business through reduced shipping costs, among other benefits.
Photo: (L-R): Mr. Anthony Ogufere, representative of the CBN Governor, Aare Hakeem Olanrewaju, Chairman of the occasion, Mr. Godfrey Bivbere, MARAN President, Mr. Celestine Akujiobi, representative of the Executive Secretary of the Nigerian Shippers’ Council, Dr. Kayode Farinto, Managing Director, Wealthy Honey Investment Limited and Mr. Adebowale Lawal, representative of the Managing Director, NPA during the MARAN breakfast meeting in Lagos recently.
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