Stanbic IBTC Launches Naira-Yuan Cross-Border Payment Platform

Stanbic IBTC Bank has introduced a cross-border payment platform that lets Nigerian businesses initiate payments in naira and settle directly in Chinese yuan. The platform, known as the Cross-Border Interbank Payment System (CIPS), is expected to cut transaction processing time from between 48 and 72 hours under traditional channels to about 24 hours.

The bank said the service is designed to reduce foreign exchange exposure, lower transaction complexity and improve payment predictability for businesses trading along the Nigeria-China corridor. China is one of Nigeria's major trading partners, and importers and manufacturers have faced multiple currency conversions, intermediary banks and settlement delays.

Faster Settlement for Traders

At the CIPS go-live ceremony in Lagos, Stanbic IBTC Bank Chief Executive Officer Wole Adeniyi said the platform was made possible by Standard Bank Group's direct participation in China's cross-border interbank payment infrastructure. He said that access allows the Nigerian bank to connect clients directly to the system.

"What really made it possible for us to do this is because our group, Standard Bank Group, is a direct participant in the China Cross-border Interbank Payment System. As a direct participant, we can connect and bring this service seamlessly to our clients in Nigeria," Adeniyi said.

He said the initiative fits the bank's strategy of strengthening financial and commercial links between Nigeria and China. Better payment infrastructure, he added, would support businesses seeking to expand trade across both markets.

Direct Route for Yuan Payments

Stanbic IBTC Bank's Head of Transaction Banking, Jesuseun Fatoyinbo, described CIPS as a purpose-built clearing and settlement infrastructure for international payments denominated in Renminbi (RMB). He said it gives Nigerian businesses a faster, more efficient and reliable alternative for cross-border payments and removes some complexities of conventional channels.

Fatoyinbo likened the platform to a direct flight from Lagos to China, saying payments can reach their destination without passing through several intermediary routes. Traditional payment channels will remain available, but CIPS provides a more direct route for settling transactions with Chinese counterparts.

CBN Backs Move

Central Bank of Nigeria Director of Trade and Exchange, Aderinola Shonekan, described the rollout as a landmark development that can address longstanding challenges facing Nigerian businesses trading with China. Shonekan, who was represented by CBN Assistant Director of Trade and Exchange in Lagos, Nnenna Ann Ezekannagha, said importers and entrepreneurs had for years dealt with transaction delays, multiple currency conversions and settlement volatility from reliance on third-party intermediary currencies.

She said that despite China's importance as one of Nigeria's largest trading partners, the absence of more direct payment arrangements had continued to expose businesses to additional costs and operational uncertainty. Stanbic IBTC's integration into China's CIPS infrastructure, she said, would provide a significant solution by establishing a more direct financial connection between Nigerian businesses and their Chinese counterparts.

For Nigerian importers and manufacturers, the platform could cut settlement delays and reduce exposure to multiple currency conversions. That matters for businesses that rely on China for inputs and goods, though the actual impact will depend on uptake and transaction volumes.