Chinese financial institutions expected to open in Nigeria

Nigerians are expected to start receiving financial services from Chinese banks in the country soon. In a move that will see the two countries forge closer financial ties, Nigerian banks are also expected to be given the same reception in China.

Cui Jianchun, the Chinese ambassador to Nigeria, revealed on Tuesday that Nigerians should expect Chinese banks to start operation in the country. He said the development is one of the major requirements to make the currency swap agreement between Nigeria and China work.

Cui, who was speaking at a press conference in Abuja to mark the 50th anniversary of the restoration of the legitimate seat of the United Nations to the People's Republic of China, said he was taking necessary steps that would lead to the setting up of Chinese financial institutions in Nigeria and vice-versa.

In 2018, Nigeria and China signed an initial three-year currency swap agreement that saw Nigeria move some of its foreign reserves to China. The size of the swap deal was estimated at $2.4 billion. Cui explained the framework for the multi-billion dollar initiative was being expanded by both the Chinese and Nigerian central banks.

"The agreement is being implemented by the two central banks and the framework would be expanded. I believe it is already working and I am working to have Chinese banks here in Nigeria and also for Nigerian banks to operate in China," Cui said.

The ambassador added deepening financial links represents a solidification of China-Nigeria relations and comes at a good time, since November will soon usher in the new session of the Forum on China-Africa Cooperation.

"FOCAC has now turned itself into a pacesetter for cooperation with Africa and a fine example of mutually beneficial cooperation in the world. Africa and China have stepped up mutual support on issues involving each other's core interests and major concerns, are working together for greater democracy in international relations, have stayed committed to multilateralism and align global governance reforms with the common interests of their countries," Cui said.

He added under the joint efforts of China and Africa, and guided by the spirit of extensive consultation, "Belt and Road" cooperation has continued to deepen ties in finance, health, investment and trade, industrialization, agricultural security, climate change, peace and security.