In what experts describe as a monumental realignment of trade strategy, Nigeria is on the verge of finalizing a landmark agreement with China to adopt the digital yuan in bilateral transactions—an ambitious move aimed at reducing its long-standing dependence on the US dollar and fostering a more balanced trade relationship with the Asian superpower.
Joseph Tegbe, Director General of the Nigeria-China Strategic Partnership (NCSP), revealed that the proposed pact forms part of a broader economic strategy to rebalance Nigeria’s foreign exchange framework and deepen commercial ties with China. “This agreement marks a significant step toward strengthening economic ties and fostering sustainable growth,” he affirmed.
The adoption of the digital yuan is expected to streamline cross-border trade settlements between both nations, lowering transaction costs, enhancing transparency, and reducing exposure to exchange rate volatility. If finalized, Nigeria would join a growing list of countries turning to China's central bank digital currency (CBDC) as an alternative global transaction medium.
The digital yuan deal comes on the heels of a renewed 15 billion yuan ($2.2 billion) currency swap agreement between the Central Bank of Nigeria and the People’s Bank of China—already enabling trade in local currencies. The anticipated digital yuan integration would push this further by digitalizing the framework for faster and more secure payments.
In just five months under the NCSP framework, Nigeria has secured over $40 billion in investment commitments and attracted more than 300 expressions of interest from Chinese companies, reflecting strong confidence in the country’s economic direction. These investments span critical sectors such as renewable energy, mining, agriculture, technology, and infrastructure.
Major Chinese firms are already staking claims in Nigeria’s future. Huawei is partnering with Nigerian institutions to establish a joint solar PV testing laboratory, while other Chinese companies are setting up electric tricycle assembly plants and technology transfer centers across the country.
The digital yuan pact, once concluded, is expected to be a game-changer in Nigeria’s trade history—paving the way for a more autonomous and digitally integrated economic system. It also aligns with Nigeria’s broader vision to become a net exporter to China within five years, mirroring Brazil’s successful trade evolution with the world’s second-largest economy.
As Nigeria embraces digital innovation and redefines its trade architecture, the partnership with China signals more than just economic cooperation—it marks the dawn of a strategic alliance built on shared growth, technological exchange, and financial independence.