Ghana yuan payment system puts Nigeria’s $2bn China swap deal in focus

Ghana has introduced a yuan-based payment system for imports from China, a move that has renewed attention on Nigeria’s $2 billion currency-swap agreement with Beijing. The Ghanaian arrangement lets eligible importers pay Chinese suppliers directly from their cedi accounts through China’s Cross-Border Interbank Payment System (CIPS), without first buying dollars.

How Ghana’s system works

The Bank of Ghana Governor, Dr Johnson Asiama, recently confirmed that Stanbic Bank Ghana was operating a cedi-to-yuan payment arrangement, while Ghana Commercial Bank was reportedly developing a similar service. Under the system, importers can start eligible yuan payments from their cedi accounts without necessarily holding separate yuan-denominated accounts.

It is designed to simplify payments to Chinese suppliers and cut reliance on US correspondent or intermediary banks. China accounted for approximately 22 percent of Ghana’s imports in 2024, making an efficient payment channel important for businesses trading with the Asian economy.

Nigeria’s swap with China

Nigeria renewed a 15 billion yuan ($2 billion) currency-swap agreement with China in 2024. The three-year agreement between the Central Bank of Nigeria (CBN) and the People’s Bank of China provides a framework to improve access to the two currencies and reduce reliance on third-party currencies for eligible transactions.

The arrangement was first established in May 2018 at 16 billion yuan, equivalent to about $2.5 billion. Its renewal in December 2024 reduced the facility to 15 billion yuan, then valued at approximately $2 billion. The agreement is intended to provide naira liquidity to Chinese businesses and yuan liquidity to Nigerian businesses, improving speed and convenience.

What Nigeria can learn

For Nigeria, which has extensive trade relations with China, a similar operational framework could help importers settle eligible transactions in yuan without first purchasing dollars. But its use has been limited, according to some Nigerian importers.

A direct naira-yuan payment channel could reduce demand for the US currency for transactions that can be settled directly in Chinese yuan, while helping businesses manage foreign exchange costs and payment delays. The benefits will depend on currency availability, participation by commercial banks and the extent to which businesses use the arrangement.

Importers would still need to convert naira into yuan at applicable rates, so foreign exchange costs would not disappear. Transaction charges and the willingness of Chinese suppliers to accept yuan payments would also shape its attractiveness.

Limits and outlook

Ghana’s initiative does not replace conventional international payment systems. It provides an alternative for eligible transactions while existing channels continue to handle dollars, euros, pounds and other currencies.

Expanding Nigeria’s use of yuan would also not remove the need for dollars to service external debt, settle dollar-denominated trade and meet other international obligations. Still, the development presents an opportunity for Nigerian policymakers and banks to improve access to the existing currency-swap facility through practical payment solutions for importers.

With Nigeria and China already operating a $2 billion currency-swap framework, making direct naira-yuan settlement more accessible could deepen bilateral trade, reduce unnecessary dollar demand and improve payment efficiency for Nigerian businesses.