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Naira, RMB direct settlement to lift cross-border trade, says CBN - THE NATION
by Collins Nweze | Assistant Business Editor
The Central Bank of Nigeria (CBN) has said the direct Naira-Renminbi (RMB) settlement by Nigeria importers from China will significantly support businesses, boosting cross border trade.
CBN Director, Trade and Exchange Department, Ms. Aderinola Shonekan disclosed this yesterday at the launch of Stanbic IBTC Cross-Border Interbank Payment System (CIPS) for RMB transactions in Lagos.
She said the CIPS platform will be empowering Nigerian businesses to transact directly with their Chinese counterparts with speed, clarity, and confidence.
Shonekan, who was represented by CBN Assistant Director, Head Customer Service, Lagos, Mrs. Nnenna Ani, said payments on the channel will drastically cut transaction processing times from several days down to a matter of hours.
She said the move will further minimize exchange-rate exposure risks for local businesses, and inject predictability into the bilateral trade corridor. “Ultimately, this eases pressure on our traditional foreign exchange reserves and bolsters the resilience of our local economy,” she said.
“The integration of Stanbic IBTC into China’s payment system creates a direct financial bridge for Nigerian businesses. Transactions can now be initiated in local currency and settled directly in Renminbi. This solution is expected to reduce transaction processing times from several days to just a few hours. The system minimizes exchange rate exposure risks and provides greater predictability for bilateral trade,” she added.
The CBN director said economic handshake has been vibrant, yet Nigerian importers and entrepreneurs have faced systemic hurdles, primarily driven by transaction delays, multiple currency conversions, and high settlement volatility associated with over-reliance on third-party intermediary currencies.
“The integration of Stanbic IBTC into China’s Cross-Border Interbank Payment System (CIPS) provides a definitive, cutting-edge solution to these historical bottlenecks. By creating a direct, seamless financial bridge that allows Nigerian businesses to initiate transactions in local currency and settle directly in RMB, Stanbic IBTC is actively changing the landscape of cross-border commerce.
“This integration aligns perfectly with the Central Bank of Nigeria’s strategic mandates: optimizing foreign exchange liquidity, lowering the cost of doing business, and providing alternative payment channels to enhance economic stability.
“From a regulatory standpoint, the Trade and Exchange Department views this initiative as a commendable private sector response to the apex bank’s policy of trade facilitation and currency diversification,” she said.
Speaking at the event, CEO Stanbic IBTC Plc, Wole Adeniyi, said the CIPS move will cut transaction delays between Nigerian and Chinese businessmen.
According to him, it will further boost financial sector operations, support cross-border settlements and foster strong international trade relations.
“CIPS supports faster, efficient and reliable cross-border RMB clearing and settlement. The CIPS does both the clearing and settlement. It enables more direct transaction processing for eligible RMB payments,” Adeniyi said.
