CBN moves to ease Nigeria-China payments as Cardoso takes talks to Beijing

Central Bank of Nigeria (CBN) Governor Olayemi Cardoso revealed plans to strengthen cross-border payment arrangements between Nigeria and China during a visit to Beijing. The move comes as both nations aim to enhance financial cooperation and bolster trade and investment ties. Cardoso's discussions with Pan Gongsheng, Governor of the People's Bank of China, covered cross-border payments, settlement arrangements, financial technology and trade finance.

Improved payment systems could facilitate bilateral trade and address challenges related to international settlements, though specific implementation plans and timelines have not been disclosed. Cardoso also engaged with international credit rating agencies, discussing Nigeria's economic outlook and the potential for achieving investment-grade ratings in the medium term.

He emphasized the significance of consistent economic policies, credible institutions, and effective coordination between fiscal and monetary authorities. During the IMF's global economy discussions, Cardoso shared Nigeria's insights and lessons for emerging economies, particularly in Africa. He stressed the need for African countries to move beyond passive participation in the technological revolution and actively shape its opportunities for economic value generation.

At an IMF seminar on central bank decision-making under uncertainty, Cardoso highlighted the CBN's experience in strengthening monetary policy decisions, transparency, and communication, citing the recent reduction in the monetary policy rate as an example. Looking ahead, Cardoso acknowledged Nigerians' resilience during economic adjustment and stressed the priority of consolidating gains into higher investment, productivity, and sustainable growth.

The CBN remains committed to price stability, monetary discipline, and financial system safety, with a medium-term objective of single-digit inflation. Beyond China, Nigeria's delegation also strengthened financial relationships with Asian markets, engaging the Monetary Authority of Singapore and signing a memorandum of understanding with a global financial technology network.

The delegation also organized the Nigeria-Asia Financial Connectivity Dialogue, which aimed to foster financial connectivity and deepen economic relationships with international partners.