The Central Bank of Nigeria (CBN) recently suggested that Nigeria should import goods for production and infrastructure development as part of its currency swap deal with China, which allows trade in naira and Chinese yuan instead of the U.S. dollar.

During a breakfast meeting held by the Maritime Reporters’ Association of Nigeria (MARAN) in Lagos, CBN Governor Mr. Olayemi Cardoso explained that this deal could help lower shipping costs, make trade more efficient, and lessen the pressure on foreign exchange in Nigeria’s shipping industry. However, he also warned that if managed poorly, it could lead to a bigger trade deficit and increase Nigeria’s debt.

The currency swap was originally signed in 2018 and renewed in December 2024. It allows Nigerian and Chinese businesses to trade directly in their local currencies. By the end of 2024, China had become Nigeria’s largest trading partner, making up about 35% of the country’s total imports, totalling around $11.58 billion.

The maritime sector, which handles most of Nigeria’s exports and imports, could see major improvements with faster port clearance and better trade financing options. Projects like the Lekki Deep Sea Port, backed by China, are part of this effort.

However, the CBN Governor pointed out that there are still problems that need to be fixed for the currency swap to work effectively. The main issues include Nigeria’s large trade deficit with China and the low use of yuan transactions by Nigerian businesses. He emphasised a need for better awareness, coordination of policies, and efforts to boost Nigeria’s non-oil exports to China.

Mr. Martins Olajide, from the Nigeria-China Strategic Partnership, also spoke at the event. He noted that while this currency swap can help trade in the short run, it doesn’t address the long-term value of the naira, which continues to lose value. He warned that depending too much on imports from China could weaken the impact of the swap deal and highlighted the need for Nigeria to improve its industries and local production.

In his opening speech, Aare Akeem Olarenwaju, Chairman of the Customs Consultative Council, raised concerns about the constant changes in the naira-dollar exchange rate, which makes prices of goods unreliable. He emphasised that people suffer the most because prices can change drastically in just a few hours, urging more awareness about using currencies like the yuan.

Mrs. Chinwe Ezenwa, CEO of Le Look Bags, also stressed the importance of promoting the naira-yuan currency swap so that more importers and shipping companies can take advantage of it. She suggested that the CBN team up with MARAN for this promotion.

Former Acting President of the Association of Nigeria Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, agreed, stating that maritime journalists should be at the forefront of promoting this currency swap instead of hiring outside consultants.

Earlier, MARAN President Mr. Godfrey Bivbere highlighted the association’s commitment to discussing important economic topics. While he recognised the potential benefits of the currency swap for reducing costs and improving trade, he also reminded everyone to consider the risks involved, especially regarding China’s growing influence in Nigeria.