Prominent human rights lawyer and activist, Femi Falana (SAN), has called on Nigerians to prioritize conducting transactions with Chinese individuals using the Naira currency. In a statement released on Monday, August 28, Falana emphasized the existence of an ongoing agreement between the two nations for currency swap as a mechanism for business transactions, and this arrangement remains in effect until 2024.
Highlighting his recent actions, he mentioned that he was compelled to exercise his rights under the Freedom of Information (FoI) Act. This compelled him to formally request information from the Central Bank regarding the current status of the currency swap agreement between Nigeria and China.
The SAN noted: “In its reply to my letter, the Central Bank confirmed that the currency swap agreement will not be due for renewal until 2024.
“In spite of the confirmation of the currency swap, the Central Bank has not allowed Nigerians to transact business in China by paying Naira.
“However, since the currency swap is valid and subsisting, I call on the Nigerian business community to insist on transacting business in Naira, including payment for goods imported from China”, he advised.
Falana recounted that half a decade ago, the Nigerian government and China engaged in a currency exchange agreement.
He mentioned that the deal, valued at Renminbi (RMB) 16 billion or N720 billion, aimed to offer sufficient local currency liquidity to Nigerian and Chinese industrialists and other businesses. This was intended to alleviate the challenges faced in acquiring United States Dollars.
Furthermore, he noted that the currency swap was also conceived to enhance the efficiency, ease, and volume of transactions between the two nations.
Falana highlighted that the International Monetary Fund (IMF) and the World Bank, institutions that oversee the Central Bank of Nigeria, collaborated with the nation’s apex bank to obstruct the progress of the currency swap.
He further explained: “The purpose of the economic sabotage is to promote the dominance of the United States Dollar in Nigeria.
“Hence, the federal government, state governments, and the business community have been prevented from transacting business in Naira and Yuan.
“Thus, by compelling Nigerians to pay dollars for goods imported from China, the Central Bank has continued to promote the unwarranted dollarization of the Nigerian economy.”
