Stanbic IBTC Opens Direct Naira-to-Yuan Payment Channel for Nigerian Importers

Stanbic IBTC Bank has launched a cross-border fee service that enables Nigerian companies to make funds in naira for settlement in Chinese yuan and cut back the dependence on the US greenback and middleman banks when conducting transactions with suppliers in China.

The new service, launched in Lagos on November 9, 2026, is predicted to cut back worldwide fee processing occasions from between 48 and 72 hours to roughly 24 hours.

The association offers Stanbic IBTC clients entry to China’s Cross-Border Interbank Payment System (CIPS) via Standard Bank Group, the financial institution’s mother or father firm and a direct participant within the Chinese settlement community.

For Nigerian companies importing equipment, electronics, industrial gear, development supplies and shopper items from China, the event gives an alternative choice to typical fee preparations that always contain a number of banks and foreign money conversions.

Previously, companies making funds to Chinese suppliers may very well be required to transform naira into US {dollars} earlier than the funds had been exchanged into yuan, relying on the fee preparations.

Such transactions may expose importers to extra conversion prices, exchange-rate fluctuations and settlement delays.

The new association simplifies this course of by permitting eligible funds to originate in naira and attain Chinese beneficiaries in renminbi with out essentially passing via the greenback.

Stanbic IBTC Chief Executive Officer Wole Adeniyi stated the initiative was made doable by Standard Bank Group’s participation in China’s worldwide fee infrastructure.

He defined that the association would strengthen industrial relationships between Nigerian companies and their Chinese counterparts by offering a extra environment friendly fee system.

The financial institution’s Head of Transaction Banking, Jesuseun Fatoyinbo, disclosed that the platform was designed to enhance transaction pace and cut back the variety of intermediaries concerned in processing funds.

According to the financial institution, transactions that beforehand required two to a few days may now be accomplished inside roughly sooner or later, relying on the relevant processing necessities.

The growth is especially related to Nigerian producers and retailers that rely closely on imported inputs and completed merchandise from China.

China stays certainly one of Nigeria’s largest buying and selling companions, supplying equipment, electrical gear, autos, industrial elements and shopper merchandise used throughout a number of sectors of the financial system.

Delays in settling funds to abroad suppliers can disrupt manufacturing schedules, cargo preparations and stock administration, notably for small and medium-sized companies working with restricted working capital.

A extra predictable fee system may due to this fact assist companies handle procurement schedules and cut back a number of the monetary uncertainty related to worldwide transactions.

However, the introduction of direct naira-to-yuan settlement doesn’t remove overseas trade danger.

Nigerian importers will nonetheless be uncovered to actions within the trade fee between the naira and the Chinese foreign money, whereas transaction prices will rely upon the charges and prices utilized by taking part monetary establishments.

The availability of yuan liquidity and the willingness of Chinese suppliers to simply accept settlement via the association can even affect its effectiveness.

The Central Bank of Nigeria welcomed the initiative, describing it as a constructive growth for commerce facilitation and the diversification of worldwide fee channels.

The Director of the CBN’s Trade and Exchange Department, Aderinola Shonekan, represented on the launch by Nnenna Ezekannagha, stated Nigerian companies had confronted persistent difficulties with cross-border settlements due to foreign money conversion necessities and delays related to middleman monetary establishments.

The regulator considers the brand new fee association per efforts to enhance the effectivity of worldwide commerce transactions and cut back pointless settlement prices.

Beyond the instant advantages to importers, the service may help broader efforts to develop using native currencies in worldwide commerce.

Nigeria and China have maintained monetary cooperation geared toward facilitating bilateral commerce, though the US greenback continues to play a dominant position in worldwide funds.

The introduction of an extra settlement channel may progressively cut back the necessity for some dollar-based transactions, however its wider impression on Nigeria’s overseas trade market will rely upon the quantity of commerce funds ultimately processed via the system.

For Stanbic IBTC, the service additionally strengthens its place in commerce finance and worldwide transaction banking at a time when Nigerian companies are looking for sooner and extra predictable methods to pay abroad suppliers.

The industrial significance of the initiative will in the end be measured by the price financial savings achieved by companies, the reliability of settlements and the extent to which Nigerian importers undertake the brand new fee channel.