China’s central bank, the People’s Bank of China (PBOC), announced on Friday the renewal of a bilateral currency swap agreement with the Central Bank of Nigeria (CBN).
The agreement, valued at 15 billion yuan (approximately $2.09 billion or N3.28 trillion), aims to bolster trade and investment between the two nations.
The currency swap agreement, originally signed in 2018, has been renewed for another three years and may be extended further upon mutual consent.
According to the PBOC’s statement on its official website, the renewed pact is expected to strengthen financial cooperation, enhance the use of both countries’ currencies, and facilitate seamless bilateral trade and investment.
The development was confirmed by Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu. Onanuga hailed the renewal as a significant step in enhancing economic collaboration between the two nations.
The currency swap agreement enables the two countries to trade directly using their own currencies—China’s yuan and Nigeria’s naira—thereby reducing reliance on the U.S. dollar.
This arrangement is expected to ease currency exchange pressures and reduce transaction costs for businesses operating across the two economies.
With China remaining Nigeria’s largest trade partner, the swap deal is anticipated to support Nigeria’s economic diversification efforts by making transactions with Chinese businesses more accessible for Nigerian traders.
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