The Nigerian naira has continued to appreciate against the US dollar, a trend that the National President of the Association of Bureau De Change Operators, Aminu Gwadabe, attributes in part to renewed confidence in the Nigeria‑China currency swap deal. Gwadabe notes that the naira’s stability is linked to the growing acceptance of the Nigerian currency by Chinese investors and businesses operating in the country.
In recent months, Chinese nationals have been conducting their day‑to‑day business in naira, especially in the mining sector, where they increasingly use the local currency for transactions instead of the US dollar. This shift suggests that the Nigeria‑China currency swap agreement, sealed in December 2024, is gaining traction. The agreement allows for the exchange of N3.28 trillion or 15 billion yuan between the two countries, making it easier for Nigerian importers to deal with Chinese counterparts using yuan rather than dollars.
As Gwadabe explained, “If a Nigerian is importing from China, all he needs now is yuan to complete the transaction. There’s no need for dollars.” This change is expected to reduce Nigeria’s reliance on the US dollar and promote the use of local currencies in international trade. On Tuesday, the naira was trading at N1,526.06 per dollar, continuing its appreciation.
The trend has been welcomed by Nigerian authorities. Presidential spokesperson Bayo Onanuga recently stated that the US dollar is no longer the dominant currency in Nigeria, highlighting the Nigeria‑China swap deal as a key factor. Economists and traders will be closely watching its impact in the coming months.
The growing use of the naira in international transactions represents a significant development for Nigeria’s economy. It could help reduce the country’s exposure to currency fluctuations and foster economic growth. As Nigeria continues to explore new ways to promote trade and investment, the Nigeria‑China currency swap deal is likely to play an increasingly important role in shaping the nation’s economic relationships with other countries.
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