Nigeria Eyes Direct Currency Swap with China’s Yuan via Digital RMB

Joseph Tegbe, the Director-General (DG) of the Nigeria-China Strategic Partnership (NCSP), has revealed that Nigeria is poised to sign a landmark deal with China, facilitating the direct conversion of Nigeria’s naira into the Chinese yuan (Renminbi). This innovative step will involve the adoption of China’s Digital Renminbi (RMB), a state-backed cryptocurrency issued by the People’s Bank of China.

Speaking at the recently held Digital Asset Markets Strategy Masterclass in Lagos, Tegbe emphasised that the forthcoming agreement represents a significant leap for Nigeria, moving beyond its historical reliance on the US dollar. He hailed the deal as an essential milestone in transforming Nigeria’s trade relationship with China into a mutually beneficial development partnership.

“This deal will not only strengthen economic ties but also diversify our financial transactions, reducing the dependency on the US dollar,” Tegbe said, underscoring the strategic importance of the Digital RMB for Nigeria’s financial future.

Over the past five months, Nigeria has made tremendous strides in its partnership with China, securing over $30 billion in investment commitments and receiving 300 expressions of interest from Chinese companies looking to invest in the Nigerian economy.

Tegbe also highlighted the potential of leveraging Chinese technology, particularly in the rapidly expanding digital asset markets, which are expected to drive growth in Nigeria’s capital markets. He affirmed that the NCSP remains dedicated to supporting the globalisation of Nigeria’s financial infrastructure.

The overarching objectives of this partnership, according to Tegbe, include advancing infrastructure development, scaling up Chinese investments in Nigeria, strengthening trade and economic relations, promoting transparency, and fostering cultural exchanges between the two nations.

The Lagos State Governor, Babajide Sanwo-Olu, represented by the state’s Commissioner for Finance, Abayomi Oluyomi, also addressed the masterclass, announcing the development of a securitisation policy aimed at monetising idle assets. This groundbreaking policy is set to position Lagos as the first sub-national government in Nigeria to issue green bonds, a move designed to fund critical infrastructure projects.

In his address, Nicholas Okoye, a global investment advisor and convener of the masterclass, noted the profound impact of digital transformation ushered in by the Fourth Industrial Revolution. He stressed that digital asset markets, including cryptocurrency investments and the tokenisation of traditional assets, represent the future of global finance and wealth creation.

“The full adoption of digital asset markets in Nigeria’s capital markets and, eventually, across Africa, will be a game changer. It will not only fuel sustainable economic growth but will also redefine the future of African finance and capital markets,” Okoye asserted.

Okoye also highlighted the transformative potential of digital assets, offering Africans a unique opportunity to build wealth, regardless of their location or profession. For the first time, digital assets could provide an accurate reflection of Africa’s true wealth, unlocking unprecedented opportunities for investment and economic advancement.