Chinese Traders Now Accepting Naira Instead of Dollars

 

In a development seen as a boost for Nigeria’s foreign exchange reforms, Chinese traders are increasingly accepting the naira in place of the U.S. dollar for business transactions.

Forex traders and analysts have linked the trend to Nigeria’s currency swap agreement with China and the rise of peer-to-peer (P2P) platforms that allow direct conversion of naira to yuan without routing through the dollar.

The Nigeria–China currency swap deal, first signed in 2018 and renewed in December 2024 with a value of about $2 billion (₦3.28 trillion), allows trade settlements in naira and yuan. This agreement has made it easier for Nigerian importers to transact directly with their Chinese partners, reducing reliance on the dollar.

According to reports, some Chinese merchants now collect naira directly, while certain online platforms used for cross-border transactions are also beginning to accept naira card payments.

Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, hailed the move as a positive sign that Nigeria’s economic reforms are yielding results.

“The Almighty U.S. dollar is not the ultimate king here. The naira is waxing stronger as an international means of exchange. Some Chinese platforms already accept naira cards, and this shows foreigners are beginning to have faith in the naira,” Onanuga said.

Forex observers say the acceptance of naira by Chinese traders is easing demand pressure on the dollar and helping to stabilize Nigeria’s local currency. With fewer businesses needing dollars for transactions with China—the country’s biggest import partner—the strain on the parallel market is expected to reduce further.

Analysts believe this shift could mark the beginning of broader international acceptance of the naira, especially if other trade partners follow suit. The move also signals that Nigeria’s efforts to diversify its forex transactions away from over-reliance on the dollar may be gaining traction.