CBN Moves To Tackle Payment Barriers In Nigeria-China Trade

The Central Bank of Nigeria (CBN) is seeking to address cross-border payment challenges and improve settlement efficiency between Nigeria and China as part of efforts to boost bilateral trade, attract investment and expand opportunities for Nigerian businesses.

CBN Governor Olayemi Cardoso disclosed this at the “Strengthening the Nigeria-China Financial Corridor” roundtable in Beijing, where he engaged Chinese investors, Nigerian business leaders, commercial banks and fintech operators on measures to improve financial connectivity between the two economies.

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The discussions focused on practical solutions to payment difficulties, local-currency settlement, export financing and access to long-term capital, with participants highlighting the need for a more efficient financial system to support businesses operating across both markets.

Nigeria’s Ambassador to China, Lt. Gen. Abdulrahman Bello Dambazau (rtd), said effective financial cooperation must translate into tangible benefits for businesses, including reliable payments to suppliers, timely receipt of export earnings, affordable working capital and financing for viable investments.

“For businesses, financial cooperation has a practical meaning. It means paying a supplier reliably, receiving export earnings promptly, securing affordable working capital, and obtaining long-term finance for a viable investment,” he said.

Dambazau identified efficient payment systems, practical local-currency settlement arrangements, export financing, productive investment and institutional trust as priorities for strengthening the Nigeria-China financial corridor.

He also called for a more balanced trading relationship, stressing that financial cooperation should help Nigerian businesses increase production and expand exports to the Chinese market.

“A stronger corridor must support flows in both directions,” the ambassador said, pointing to opportunities for Nigerian enterprises to access Chinese markets through improved export financing and investments in productive sectors.

The push for more efficient financial transactions comes as Nigeria seeks to translate recent economic reforms into increased trade and investment. The CBN is positioning improvements in the foreign exchange market and external reserves as a foundation for greater private-sector participation in international commerce.

Speaking at the roundtable, Cardoso highlighted changes in Nigeria’s foreign exchange market, particularly the reduced reliance on direct central bank intervention.

“Today, the market funds itself. The central bank doesn’t have to come in and intervene that much,” he said, attributing the development to improvements in market liquidity and transparency.

Figures presented at the meeting showed that Nigeria’s gross external reserves had exceeded $55 billion, while inflation had declined significantly from its 2024 peak. Cardoso reiterated the apex bank’s commitment to policy consistency, assuring investors that the reforms supporting these gains would be sustained.

For Chinese investors operating in Nigeria, participants also stressed the importance of predictable financial conditions, efficient capital transfers and the ability to repatriate investment returns.

Cardoso acknowledged the concerns raised by businesses, saying the engagement was intended to address practical challenges affecting commercial activities rather than end with discussions alone.

“We came here for serious business. We came here because we recognise the fact that the business community are stretched and are having issues which we need to ensure we can take care of,” he said.

The roundtable reflects Nigeria’s efforts to move beyond macroeconomic stabilisation towards investment-led growth by addressing financial bottlenecks that could constrain trade and private-sector activity.

For Nigerian exporters and importers, more efficient payment and settlement arrangements could reduce transaction difficulties and improve the movement of goods and funds between the two countries. However, the extent to which the engagement delivers these benefits will depend on the implementation of practical measures agreed by the relevant financial institutions and businesses.