Nigeria, China Revive Local Currency Swap Deal

Nigeria and China are set to revive their local currency swap agreement in a bid to bolster trade between the two nations and contribute to global financial stability.

The move signals a renewed commitment to regional monetary and financial cooperation, according to a joint statement released during Nigerian President Bola Tinubu’s official visit to China.

The Central Bank of Nigeria (CBN) had previously signed a $2.4 billion bilateral currency swap deal with the People’s Bank of China (PBoC) in 2018, but the initiative faced implementation challenges due to trade imbalances.

Both countries are now determined to address those issues and foster a more flexible financial partnership.

In addition to the currency swap, Nigeria and China have agreed to enhance cooperation on financial intelligence, with a focus on combating money laundering and terrorism financing.

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Both nations aim to safeguard financial markets and crack down on financial crimes.

During President Tinubu’s visit, Nigeria and China also signed a series of agreements and Memorandums of Understanding (MoUs) aimed at strengthening relations at the provincial and municipal levels.

These partnerships are expected to deepen sub-national cooperation, protect the rights of each country’s citizens, and create a more favourable business environment for companies operating in both nations.

China has expressed strong support for Nigeria’s efforts to expand trade within West Africa, with the two countries agreeing to work together on flagship projects that promote cross-national and regional cooperation.

This comes as part of China’s broader commitment to Africa through initiatives like the Forum on China-Africa Cooperation (FOCAC), where President Tinubu is attending the Beijing Summit at the invitation of Chinese President Xi Jinping.

The two leaders also discussed upgrading the China-Nigeria relationship to a Comprehensive Strategic Partnership, further cementing their cooperation on key issues such as sovereignty, national unity, and economic development.

Nigeria reaffirmed its support for China’s “One-China” policy, acknowledging Taiwan as an inalienable part of China’s territory.

As both nations move forward, they reiterated their shared vision for strengthening ties and advancing cooperation not only between China and Nigeria, but also within the broader framework of China-Africa relations.