In light of the 2018 establishment of a currency exchange agreement between the Federal Governments of Nigeria and China, human rights activist Femi Falana has urged Nigerian business owners to conduct transactions with China in naira.
He emphasized that the agreement, valued at RMB 16 billion, aimed to increase local currency liquidity for both Nigerian and Chinese industrialists and businesses, thereby easing the challenges of obtaining US dollars.
This was revealed by Falana in a Monday statement.
“The Federal Government of Nigeria and China signed a treaty on currency exchange about five years ago. The transaction, which had a value of RMB 16 billion (or N720 billion), was made with the intention of giving Nigerian and Chinese businesspeople and industrialists access to sufficient local currency liquidity and easing their search for US dollars. According to a portion of the statement, the swap was also intended to increase the volume, expediency, and speed of transactions between the two nations.
Falana claims, however, that “the World Bank and the International Monetary Fund, which supervise the Central Bank of Nigeria, have conspired with the Central Bank of Nigeria to frustrate the currency swap.” He claimed that the economic sabotage’s goal was to support the US dollar’s hegemony in Nigeria. As a result, the federal government, state governments, and the business sector are unable to conduct transactions in Naira and Yuan.
Falana also disclosed that he recently contacted the Central Bank of Nigeria via the Freedom of Information Act to inquire about the status of the currency swap agreement between Nigeria and China.
He stated that despite confirmation that the agreement is still in effect, the CBN continues to forbid Nigerians from transacting in naira in China.
“Recently, I was forced to use my right to access information under the Freedom of Information Act by asking the Central Bank to provide me with information on the status of the currency swap agreement between Nigeria and China.
“The Central Bank responded to my letter and confirmed that the currency swap agreement will not expire until 2024. The Central Bank has prohibited Nigerians from conducting business in China using Naira, despite the confirmation of the currency swap. The Nigerian business community is urged to insist on conducting all transactions in Naira, including paying for goods brought in from China, as long as the currency swap is still in effect.
