Falana urges Nigerians to transact business with Chinese in naira

Femi Falana, a human rights activist, has urged Nigerian business owners to conduct transactions with China in naira as a result of the establishment of a currency exchange agreement between the Federal Governments of Nigeria and China in 2018.

He emphasized that the RMB 16 billion agreement aimed to increase local currency liquidity for both Nigerian and Chinese industrialists and businesses, thereby reducing the difficulties associated with obtaining US dollars.

This was disclosed by Falana in a statement on Monday.

“The Federal Government of Nigeria and China signed a currency exchange agreement around five years ago. The transaction, which had a value of RMB 16 billion (or N720 billion), aimed to give Nigerian and Chinese industrialists and other businesses enough local currency liquidity, thereby easing their search for US dollars. The speed, ease, and volume of transactions between the two countries were also to be improved by the swap, according to a portion of the statement.

Falana asserts that the World Bank and the International Monetary Fund, which oversee the Central Bank of Nigeria, have conspired with the latter to thwart the currency swap. He asserts that the aim of the economic sabotage is to support the US dollar’s hegemony in Nigeria. As a result, the government at the federal and state levels as well as the private sector are unable to conduct transactions in Naira and Yuan.

Falana also disclosed that he recently contacted the Central Bank of Nigeria to inquire about the status of the currency swap agreement between Nigeria and China using the Freedom of Information Act.

He pointed out that the CBN continues to forbid Nigerians from transacting in naira in China, despite confirmation that the agreement is still in effect.

“Recently, I was compelled to use my freedom of information act right by asking the Central Bank for information on the status of the currency swap agreement between Nigeria and China.

“The Central Bank confirmed that the currency swap agreement will not need to be renewed until 2024 in its response to my letter. Despite the confirmed currency swap, the Central Bank has prohibited Nigerians from conducting business in China using Naira as payment. However, as long as the currency swap is still in effect, I urge Nigeria’s business community to insist on paying for goods brought in from China in Naira.