Nigeria and China are set to revive their local currency swap agreement in a bid to bolster trade between the two nations and contribute to global financial stability. Both countries made the commitment during a high-level discussion between President Bola Tinubu and President Xi Jinping.
This was contained in the joint statement between China and Nigeria on establishing being part of the broad consensus reached by the two sides during President Tinubu’s official visit to China.
The Central Bank of Nigeria, CBN, had in 2018 signed a bilateral currency swap agreement with the People’s Bank of China, PBoC, worth about $2.4 billion but the implementation had been fraught with challenges due to trade imbalances between both countries.
The two countries also agreed to carry out international cooperation on financial intelligence on anti-monetary laundering/countering the financing of terrorism (AML/CFT) and support Nigeria’s efforts to safeguard the order of its financial and foreign exchange markets and to crack down on financial crimes, including money laundering.
In the signing of a series of partnership agreements and Memorandum of Understandings, MoUs, the two sides further supported the establishment of more friendly relations between Chinese and Nigerian provinces/states and municipalities to expand and deepen cooperation at the sub-national level.
They committed to stepping up the protection of lawful rights and interests of each other’s citizens on their territories and to creating a favourable business environment for each other’s companies.
As China welcomed Nigeria to expand trade between the two countries, the two sides agreed to make joint efforts to fully support Nigeria’s geographical and development advantage in West Africa to establish Africa’s flagship projects on cross-national and cross-regional cooperation.
President Tinubu is in China at the invitation of President Xi Jinping for a State Visit and to attend the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC).
In their discussion, the two presidents agreed that both countries stood at a new historical starting point as significant representatives of major developing countries and emerging economies, noting that their strengthened strategic cooperation would propel a new dynamic for China-Africa relations in the new era and lead the Global South to march together.
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To consolidate mutual trust, expand cooperation and strengthen coordination, the two presidents have agreed to upgrade the China-Nigeria relationship to a Comprehensive Strategic Partnership and build a High-level China-Nigeria Community with a shared future.
The statement noted that Nigeria and China have embarked on a path of seeking strength through unity for win-win cooperation, reaffirming their firm support to each other on issues related to their respective core interests and major concerns, particularly sovereignty and territorial integrity.
While the Chinese side resolved to support the Renewed Hope Agenda of Nigeria and the efforts made by Nigeria to maintain national unity, peace, security, and social stability, as well as promote economic development and improve people’s welfare, the Nigerian side stated its firm adherence to the one-China principle.
Nigeria acknowledged that there is but one China in the world, and the government of the People’s Republic of China is the sole legal government representing the whole of China, and Taiwan is an inalienable part of China’s territory.
“Nigeria opposes any form of ‘Taiwan Independence’ or interference in the internal affairs of China and firmly supports all efforts made by the Chinese government to achieve national reunification,” the statement added.
The two sides spoke highly of the leading roles played by FOCAC in advancing the quality of cooperation between China and Africa over the past 24 years since, the establishment of FOCAC, believing that the successful convening of the Beijing Summit of FOCAC opened a new chapter of unity and cooperation between China and Africa.
Nigeria and China reiterated their firm support to each other in independently seeking a development path that suits their national interest and will further strengthen exchanges on experiences of governance.
The two nations also agreed on the importance of human rights as a universal cause, opposing the politicization of human rights issues and interference in the internal affairs of sovereign states under this pretext.
Furthermore, the statement aso includes that, Nigeria expressed strong support for several key initiatives proposed by Chinese President Xi Jinping, including the vision of Building a Community with a Shared Future for Mankind, the Belt and Road Initiative (BRI), the Global Development Initiative (GDI), the Global Security Initiative (GSI), and the Global Civilisation Initiative (GCI).
China has also committed to assisting Nigeria in enhancing its capacity to address both traditional and non-traditional security challenges.
This includes upgrading military equipment and intelligence gathering capabilities, as well as strengthening cooperation between security agencies to safeguard national sovereignty and regional stability.
Both countries have committed to continuing their cooperation in areas such as culture, tourism, education, and sports.
They plan to build cultural brands like the China-Nigeria Culture Week and the China-Nigeria Film Festival, which will further strengthen the bond between their peoples.
