CBN backs direct naira-RMB settlement to cut cross-border trade delays

The Central Bank of Nigeria (CBN) has said direct Naira-Renminbi (RMB) settlement will support Nigerian importers from China and boost cross-border trade. The CBN spoke yesterday at the launch of Stanbic IBTC Cross-Border Interbank Payment System (CIPS) for RMB transactions in Lagos.

Payments in hours, not days

Ms. Aderinola Shonekan, Director, Trade and Exchange Department at CBN, said the CIPS platform will empower Nigerian businesses to transact directly with their Chinese counterparts with speed, clarity and confidence. Shonekan was represented by CBN Assistant Director, Head Customer Service, Lagos, Mrs. Nnenna Ani.

She said payments on the channel will drastically cut transaction processing times from several days down to a matter of hours. The move will further minimise exchange-rate exposure risks for local businesses and inject predictability into the bilateral trade corridor.

“Ultimately, this eases pressure on our traditional foreign exchange reserves and bolsters the resilience of our local economy,” she said.

“The integration of Stanbic IBTC into China’s payment system creates a direct financial bridge for Nigerian businesses. Transactions can now be initiated in local currency and settled directly in Renminbi. This solution is expected to reduce transaction processing times from several days to just a few hours. The system minimizes exchange rate exposure risks and provides greater predictability for bilateral trade,” she added.

Why the CBN backs the channel

Shonekan said the economic relationship between Nigeria and China has been vibrant, but Nigerian importers and entrepreneurs have faced systemic hurdles. She listed transaction delays, multiple currency conversions and high settlement volatility associated with over-reliance on third-party intermediary currencies.

“The integration of Stanbic IBTC into China’s Cross-Border Interbank Payment System (CIPS) provides a definitive, cutting-edge solution to these historical bottlenecks. By creating a direct, seamless financial bridge that allows Nigerian businesses to initiate transactions in local currency and settle directly in RMB, Stanbic IBTC is actively changing the landscape of cross-border commerce,” she said.

“This integration aligns perfectly with the Central Bank of Nigeria’s strategic mandates: optimizing foreign exchange liquidity, lowering the cost of doing business, and providing alternative payment channels to enhance economic stability,” she said.

“From a regulatory standpoint, the Trade and Exchange Department views this initiative as a commendable private sector response to the apex bank’s policy of trade facilitation and currency diversification,” she said.

Stanbic IBTC’s role

Stanbic IBTC Plc CEO Wole Adeniyi said the CIPS move will cut transaction delays between Nigerian and Chinese businessmen. He said it will further boost financial sector operations, support cross-border settlements and foster strong international trade relations.

“CIPS supports faster, efficient and reliable cross-border RMB clearing and settlement. The CIPS does both the clearing and settlement. It enables more direct transaction processing for eligible RMB payments,” Adeniyi said.

The direct settlement channel is expected to reduce the use of intermediary currencies in Nigeria-China trade, lower conversion costs and make payment timing more predictable for importers.