Prominent human rights activist Femi Falana has urged Nigerian business owners to conduct transactions with China in the local currency, the naira, due to a currency exchange agreement established between the Nigerian government and China in 2018.
The agreement, worth RMB 16 billion, aimed to boost local currency liquidity for both Nigerian and Chinese businesses, thereby addressing challenges in sourcing US dollars.
In a statement, Falana pointed out that the International Monetary Fund (IMF) and the World Bank, overseeing Nigeria’s Central Bank, have cooperated with the Central Bank of Nigeria to hinder the currency swap. He alleged that this was done to support the dominance of the US dollar in Nigeria, preventing the use of the naira and yuan for transactions.
Falana recently used the Freedom of Information Act to inquire about the status of the currency swap agreement with the Central Bank of Nigeria. The Central Bank confirmed the validity of the agreement until 2024, yet transactions with naira are still restricted when dealing with China.
Given the confirmed status of the currency swap, Falana encourages the Nigerian business community to insist on using the naira for transactions, including payments for imported goods from China.