Nigeria and China have announced plans to revive their local currency swap agreement, aiming to enhance trade between the two nations and contribute to global financial stability.
The renewed focus on this initiative was highlighted during Nigerian President Bola Tinubu’s official visit to China, signaling a commitment to strengthening regional monetary and financial cooperation.
The Central Bank of Nigeria (CBN) first signed a $2.4 billion currency swap deal with the People’s Bank of China (PBoC) in 2018. However, the agreement faced hurdles due to trade imbalances that hindered its full implementation. Now, both countries are determined to overcome these challenges and foster a more flexible financial partnership.
Alongside the currency swap, Nigeria and China have agreed to increase cooperation on financial intelligence, particularly in combating money laundering and terrorism financing. This collaboration aims to safeguard financial markets and strengthen the fight against financial crimes.
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During President Tinubu’s visit, the two nations also signed multiple agreements and Memorandums of Understanding (MoUs) to strengthen ties at provincial and municipal levels. These partnerships are designed to deepen sub-national cooperation, protect the rights of citizens, and create a more favorable business environment for companies operating in both countries.
China has expressed strong support for Nigeria’s efforts to expand trade within West Africa, with both nations agreeing to collaborate on flagship projects that promote cross-national and regional cooperation. This aligns with China’s broader commitment to Africa through initiatives such as 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 elevating the China-Nigeria relationship to a Comprehensive Strategic Partnership, further solidifying their cooperation on key issues like sovereignty, national unity, and economic development. Nigeria reaffirmed its support for China’s “One-China” policy, recognizing Taiwan as an inalienable part of China.
As Nigeria and China move forward, they reiterated their shared vision of strengthening bilateral ties and advancing cooperation within the broader framework of China-Africa relations.
