The Nigeria We Pledged For

U.S market Panics as Buhari signs deal with
In a bid to bridge the widening gap between
the Naira and the Dollar in the Exchange rate
market, President Muhammadu Buhari, on
Tuesday, April, 12, shocked foreign investors
mainly from the United States who have been
accused of stockpiling their money in dollars.
The President had consistently insisted that he
would not devalue the naira against the dollar
despite pressure from the International
Monetary Fund, IMF and the United States.
With the West insisting that the nation’s
currency must be devalued, which has always
been part of their conditions for assistance, the
East (China) has offered to rejuvenate the
nation’s economy by investing in capital projects
across the country.
During talks, China and Nigeria agreed to
strengthen military and civil service exchanges
as part of a larger capacity building
In line with this, China offered to raise it’s
scholarship awards to Nigerian students from
about 100 to 700 annually, while 1,000 other
Nigerians would be given vocational and
technical training by China annually.
According to the Senior Special Assistant to the
President on Media and Publicity, Garba Shehu,
the Chinese President, Xi Jinping also offered $15
million agricultural assistance to Nigeria for the
establishment of 50 demonstration farms across
the country.
The offer was in response to Buhari’s vow to
make Nigeria self-sufficient in food production.
During Buhari’s visit to Beijing, the Industrial
and Commercial Bank of China Limited, the
world’s biggest lender, and the Central Bank of
Nigeria signed a Currency swap deal on yuan
The implication according to the Director-Genera
l, African Affairs Department, China’s Foreign
Ministry, Lin Songtian, is that “Renminbi (yuan)
is free to flow among different banks in Nigeria,
and the renminbi has been included in the
foreign exchange reserves of Nigeria,”
The Minister of Finance, Mrs. Kemi Adeosun,
had said last week that Nigeria was looking at
panda bonds or yuan-denominated bonds sold
by overseas entities on the mainland, which she
noted would be cheaper than the dollar and the
An economic expert and Chief Executive Officer,
Cowry Asset Management Limited, Mr. Johnson
Chukwu, noted that the currency swap
agreement will allow Nigerian banks to issue
Letters of Credit in renminbi (yuan) in place of
the dollar or euro.
“It will facilitate trade deals between Nigeria and
China. The ongoing foreign exchange scarcity has
been affecting the amount of Nigeria’s import
from China.
“The new deal may ease pressure on the dollar,
since demand for yuan/renminbi will start
rising,” Chukwu said.
So far, most financial analysts have applauded
Buhari for the trade agreement with China; on
the other hand, China has also expressed
interest in setting up major projects in Nigeria
such as refineries, power plants, mining
companies, textile manufacturing, and food
processing industries as soon as the enabling
environment is provided by the Federal
Economic pundits have likened this agreement
to his 1984 military regime policy when he
directed the Apex Bank to cause a change in the
colours of the Nigerian currency.
The exercise was designed to render the money
alleged to have been stolen by Nigerian political
leaders useless in their hands.
In a bid not to devalue, Buhari according to
experts is seeking for a way to weaken the
dollar dominated currency by approving Yaun to
be one of the nation’s major foreign exchange

Temi Badmus
Temi Badmus
Temi Badmus is a Food scientist and an Art enthusiast. Her desire is to give a listening ear to people and to give an opportunity for everyone to be heard. Has any one told you that you are special? Yes, you are. You were beautifully designed, you are relevant to this generation and very special to me. Connect with me on LinkedIn

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