Renowned Senior Advocate of Nigeria, Femi Falana, has called on the Nigerian business community to prioritize using the naira for transactions, even when dealing with Chinese partners.
He emphasizes the importance of using the naira to pay for imported goods from China.
In a statement shared with the media on Monday, Falana highlighted a significant currency exchange agreement between Nigeria and China that took place five years ago.
This agreement, valued at RMB 16 billion (equivalent to N720 billion), aimed to ensure sufficient local currency availability for both Nigerian and Chinese industries and businesses. Its purpose was to alleviate challenges related to sourcing United States Dollars.
The currency swap was also meant to enhance transaction speed, convenience, and volume between the two nations.
However, Falana revealed that the Central Bank of Nigeria, under the influence of the International Monetary Fund and the World Bank, hindered the success of this currency swap initiative.
Using the Freedom of Information Act, Falana recently communicated with the Central Bank of Nigeria (CBN) to verify the status of the currency swap agreement between Nigeria and China.
Despite receiving confirmation that the agreement remains valid, the CBN still restricts Nigerians from conducting transactions in China using the naira.
This situation has prompted Falana to urge Nigerian businesses to stand firm on conducting transactions in naira, including payments for goods imported from China.