China, Nigeria renewed currency swap agreement, worth 15 billion yuan $2 billion to enhance trade investment between the two countries.

By Divine Sam

China and Nigeria have renewed their currency-swap agreement, worth 15 billion yuan ($2 billion), to enhance trade and investment between the two countries.

This arrangement, valid for three years with potential renewal, aims to boost financial cooperation and promote the use of the yuan and naira in bilateral transactions.

Initially established in 2018, the deal allows businesses in both nations to access their respective currencies directly, reducing reliance on third-party currencies like the US dollar.

The renewal follows a meeting between Nigerian President Bola Tinubu and Chinese President Xi Jinping in September, where they discussed enhancing financial cooperation and regional monetary flexibility.

The agreement is expected to further strengthen economic ties and improve cross-border trade between China and Nigeria, which accounts for nearly 30% of Nigeria’s total trade.