Human rights activist Femi Falana has urged Nigerian business owners to conduct transactions with Chinese partners using the naira. This suggestion stems from a currency exchange agreement established between the Federal Government of Nigeria and China in 2018, valued at RMB 16 billion.
The aim of this agreement is to boost local currency liquidity for both Nigerian and Chinese industrialists and businesses, thus easing the challenges associated with obtaining United States dollars.
Falana emphasized this point in a statement issued on Monday, highlighting that the agreement was intended to facilitate faster, more convenient, and higher-volume transactions between the two countries. However, he expressed concern that despite the validity of the agreement, the Central Bank of Nigeria (CBN), under pressure from the International Monetary Fund and the World Bank, has hindered its implementation.
He accused these institutions of colluding with the CBN to thwart the currency swap, ultimately aiming to maintain the dominance of the US dollar in Nigeria. This stance, according to Falana, has prevented both the government and the business community from fully utilizing the agreement.
To address this issue, Falana disclosed that he had submitted a Freedom of Information Act request to the CBN seeking clarification on the current status of the currency swap. While the CBN confirmed that the agreement remains valid until 2024, it has yet to allow Nigerians to conduct transactions in China using the naira.
In light of this, Falana called on the Nigerian business community to insist on using the naira for transactions with China, including payments for imported goods.
