CBN outlines market infrastructure supporting Nigeria–China financial flows at Beijing investor forum

CBN and other Nigerian banking executives discuss bilateral arrangements with their Chinese counterparts in Beijing

BEIJING — The Central Bank of Nigeria is developing financial-market infrastructure to support transactions between Nigeria and China and strengthen investor confidence in cross-border financial flows, a CBN official told an investor forum in Beijing.

Dr Okey Umeano, Deputy Director, Financial Markets, said the work extended beyond bilateral swap arrangements to the markets and mechanisms banks need to conduct transactions.

He identified fixed-income market development and work on repurchase agreements, or repos, among the measures supporting the financial infrastructure for RMB–naira activity.

“Even with the policies that are in place, we’re also building infrastructure to support what the market is doing,” Umeano said.

His remarks placed market functioning at the centre of the discussion about deeper financial ties. The objective, he explained, was to give both direct and portfolio investors confidence in their ability to move funds through the financial system.

Umeano said the CBN was building the infrastructure around its policy framework to support continuity and provide confidence over longer investment horizons.

Banking executive Kayode Solola of Standard Bank Group reinforced the importance of efficient payment infrastructure. He said reliable connections between financial systems would give businesses greater certainty about how transactions would be processed and completed.

Solola also highlighted the work required to develop financial flows in both directions. Exporters accustomed to earning dollars would need to consider receiving renminbi, helping build the corresponding flows that could support wider RMB use.

He described those discussions as ongoing, indicating that broader adoption would depend on changes in commercial practice alongside improvements in financial infrastructure.

Flutterwave CEO Olugbenga Agboola provided an example of private-sector payment arrangements already serving the corridor. He said the company had developed a model through which Nigerian businesses could pay participating Chinese suppliers in naira.

Agboola linked adoption to trust in the payment provider, confirmation that funds had been paid and greater exchange-rate predictability.

The discussion connected the CBN’s market-development work with the practical requirements of banks, investors and businesses. It also highlighted the distinct roles of policy, financial markets and payment providers in supporting transactions across the corridor.

For Umeano, the longer-term objective was a financial framework that continued to function reliably beyond the officials implementing it, giving investors confidence that the arrangements supporting their transactions would endure.