China and Nigeria have renewed their bilateral currency swap agreement, aimed at bolstering financial cooperation and promoting trade and investment between the two nations.
The People’s Bank of China announced the renewal on Friday, confirming that the agreement is valued at 15 billion yuan (approximately $2.09 billion or N3.28 trillion). The arrangement, initially established in 2018, remains valid for three years and is subject to renewal upon mutual consent.
Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, also confirmed the development.
In a statement, the People’s Bank of China highlighted the benefits of the agreement, stating that it will “strengthen financial cooperation between China and Nigeria, expand the use of the two currencies, and promote and facilitate bilateral trade and investment.”
The renewed currency swap arrangement allows businesses in both countries to settle trade transactions in their respective currencies, reducing reliance on the U.S. dollar and potentially lowering transaction costs.
The agreement underscores the growing economic ties between China and Nigeria, with both nations seeking to enhance bilateral trade and investment opportunities.
