Chinese traders in Nigeria are increasingly using naira instead of dollars for transactions, boosting the local currency’s stability, ABCON says.
The National President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has attributed the naira’s recent stability against the dollar to renewed confidence in the Nigeria-China currency swap deal.
Speaking on Tuesday, Gwadabe said Chinese investors and traders in Nigeria are increasingly adopting the naira for transactions instead of the US dollar, particularly through peer-to-peer (P2P) exchanges.
“The Chinese are now accepting naira for yuan through peer-to-peer (P2P) transactions,” he explained. “Visit any mining factory, and you’ll find Chinese nationals conducting business directly in naira. This is something the CBN isn’t actively facilitating.”
He added that Nigerian importers trading with China now only require yuan for settlement. “There’s no need for dollars. So why go through a third currency?” he asked.
The development follows the N3.28 trillion (15 billion yuan) bilateral swap deal signed between Nigeria and China in December 2024.
On Tuesday, the naira traded at N1,526.06 to the dollar.