The Central Bank of Nigeria (CBN) has raised concerns that the persistent imbalance in trade flows between Nigeria and China may hinder the full realisation of the benefits expected from the bilateral currency swap agreement between the two nations.
Speaking at a breakfast meeting organised by the Maritime Reporters Association of Nigeria (MARAN) in Lagos yesterday, CBN Governor, Olayemi Cardoso, represented by his Special Adviser on Finance and Strategy, Anthony Ogufere, described the skewed trade dynamic as a critical challenge that threatens the long-term viability of the deal.
“The imbalance in trade flows constrains Nigeria’s capacity to reap the full benefits of the swap agreement,” he warned.
While acknowledging that the agreement has helped facilitate smoother imports from China, Cardoso noted that Nigeria’s exports remain largely underwhelming, composed primarily of unprocessed raw materials such as crude oil, natural gas, and solid minerals, limiting the inflow of the Chinese yuan and deepening trade disparities.
In 2023, for instance, Nigeria exported approximately $2.51 billion worth of goods to China, in stark contrast to imports from China, which stood at around $20 billion.
