Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that Nigeria is developing a new framework for using national currencies in bilateral trade settlements, aimed at reducing reliance on foreign exchange and ensuring mutual benefits.
Speaking at the IMF/World Bank Annual Meetings in Washington DC, Cardoso admitted that earlier efforts, including the 2018 naira–yuan currency swap deal with the People’s Bank of China worth ₦720bn (RMB 15bn), failed to deliver results due to logistical and liquidity challenges. However, a renewed ₦3.28tn (RMB 15bn / $2.09bn) swap agreement was signed in December 2024, valid for three years to strengthen trade and financial cooperation between both nations.
Cardoso said Nigeria’s more competitive currency and ongoing foreign exchange reforms have improved the country’s trade balance, with a 6% GDP trade surplus projected to continue. He added that recent reforms have enhanced investor confidence, encouraged local production, and reduced import dependence.
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