The Importers Association of Nigeria (IMAN) has called for urgent steps toward industrial diversification and infrastructural development, warning that Nigeria risks becoming merely a dumping ground for Chinese products, if it fails to leverage the Nigeria-China currency swap deal to boost local manufacturing and exports.
Speaking at a breakfast meeting organized by the Maritime Reporters Association of Nigeria (MARAN) in Lagos on Tuesday, Dr. Ibrahim Mahmoud Mubarak, Director of Customs and Extant, Trade Facilitation, IMAN Special Taskforce, emphasized that without significant investment in local industry, the currency swap arrangement may further tilt the trade balance in China’s favour.
Themed “Navigating the Nigeria-Peoples Republic of China Currency Swap: Opportunities and Challenges for Import, Export and Maritime Business,” the event highlighted both the prospects and pitfalls of the bilateral deal.
Dr. Mubarak noted that while the deal offers opportunities for smoother trade and reduced pressure on Nigeria’s dollar reserves, it could lead to long-term economic consequences if not properly-managed. He warned of increased trade imbalances, a decline in local production, and further depletion of the country’s foreign reserves due to what he described as “the super-sovereign reserve currency effect.”
“Economically, if we subject the relationship between Nigeria and China to analytical review, it fits within the dependency theory, where Nigeria continues to play the junior partner role. This deal, without strategic economic reengineering, will only deepen that imbalance,” he stated.
Also speaking at the event, former Director at the Federal Ministry of Transportation, Chief (Mrs.) Chinwe Ezenwa, lauded MARAN for the initiative, noting that many key stakeholders, including herself, were unaware of the currency swap deal’s existence until recently.
Sharing her personal experience, she recounted a business trip to China in January during which she conducted all transactions in U.S. dollars—unaware of the alternative arrangement. She stressed the importance of broad-based awareness among importers, exporters, and players in the international trade ecosystem.
Chief Ezenwa also raised concerns about the nature of trade relations with China, describing the Chinese as “unfriendly friends.” She cautioned Nigerian businesses to tread carefully and ensure that the currency swap is not used solely for importing goods but also for securing technology transfer and building mutually beneficial partnerships.
She called on the Central Bank of Nigeria (CBN) to actively sensitize members of the Manufacturers Association of Nigeria (MAN) and small-scale industrialists on how to utilize the currency swap framework for industrial and economic growth.
“The swap deal should be a tool for economic empowerment, not a trap. Let it support innovation, industrial development, and fair exchange of value between both countries,” she advised.
FG Gazzettes ECOWAS Tarriffs, Advancing AfCFTA Implementation
The Federal Government has officially gazetted and transmitted the ECOWAS schedule of tariff offers for Trade in Goods under the African Continental Free Trade Area (AfCFTA) to it secretariat.
This is contained in a statement by Dr Jumoke Oduwole, Minister of Industry, Trade and Investment, on Tuesday in Abuja.
Oduwole said that the move was ahead of the 16th meeting of the AfCFTA Council of Ministers (COM) responsible for trade, holding in Kinshasa, DRC, on Tuesday, marking a significant milestone in regional trade integration.
According to her, this agreement establishes zero duties on 90 per cent of tariff lines for trade in goods, enhancing Nigeria’s market competitiveness and expanding trade opportunities across Africa.
“Nigerian goods are now competitively positioned in the African market, ensuring greater business access and profitability.
“President Bola Tinubu signed the ECOWAS Schedule of Tariff Offers, which reinforces Nigeria’s commitment to regional trade expansion.
“This step under the AfCFTA framework strengthens Nigeria’s role in shaping the future of intra-African trade and boosting export competitiveness.
“Furthermore, it enables the seamless shipment of goods to and from Nigeria, unlocking new opportunities for businesses, manufacturers, and exporters.
“Implications of Nigeria’s ECOWAS Tariff offer the gazetting of the schedule of tariff concessions is expected to yield significant benefits,”she said.
The minister said that the benefits included boosting economic growth and job creation by reducing trade barriers, strengthening regional integration and trade relations through enhanced economic ties.
She added that it would also support Nigerian Small and Medium Enterprises (SMEs) by lowering costs and encouraging market expansion.
“Furthermore, Nigeria’s commitment to AfCFTA implementation makes it an attractive destination for foreign and intra-African investment, reinforcing its role as a trade hub in West Africa.
“However, stronger engagement is required from African Trade Minsters to address other types of barriers, including non-tariff barriers that could hinder market access.
“Additionally, improving productive capacity and ensuring compliance with international standards remain imperative to maximise the benefits of the AfCFTA.
“Nigeria is open for business.
“The gazetting and transmission of the ECOWAS schedule of tariffs to the AfCFTA Secretariat signals Nigeria’s readiness for trade under the agreement.
Oduwole said that the milestone would enable Nigerian exporters to leverage preferential tariff access across African markets, positioning Nigeria as a key player in regional and global trade.
She added that the development would as well underscores Nigeria’s dedication to leveraging Africa’s single market for economic transformation.
“After initiating its first shipment under AfCFTA in July 2024, Nigeria has solidified its leadership in regional trade and integration with the formal gazetting of the schedule of tariffs for trade in goods.
” This is to ensure that Nigerian goods can access other markets competitively and profitably.”
“This reciprocal trade arrangement aligns with the directive of the 35th Ordinary Session of the Assembly of Heads of State and Government of the African Union in February 2022.
” As a result, other AfCFTA State Parties can now accept consignments from Nigeria under the Agreement.
” Under its preferred classification, Nigeria’s tariff reductions for trade in goods follow a phased approach over 10 years beginning in 2021.
“By 2025, the fifth year of AfCFTA implementation, a 50 per cent tariff reduction on NGN, implemented at a rate of 10 per cent per year, should immediately affect goods in trade with least developed countries in Africa.
” For trade with developing countries on the continent, Nigeria retains the flexibility of complete tariff elimination (0 per cent) effectively immediately under AfCFTA, applying a 20 per cent reduction annually.
” The gazetting announcement follows the AfCFTA digital trade mandate announced in February in Addis Ababa.
“The President, however, received a commendation for his work on digital trade, further reinforcing the country’s commitment to regional and continental trade integration.
” As a digital trade co-champion, Nigeria is advancing seamless trade facilitation and cross-border commerce, ensuring businesses, especially SMEs can fully benefit from AfCFTA’s framework,” she said.
