SEA Empowerment Research Center Raises Concerns Over China-Nigeria Currency Swap Deal

The SEA Empowerment Research Center has raised alarms about the implications of Nigeria’s $2 billion currency swap agreement with China. While the initiative is expected to ease trade by facilitating transactions in Naira and Yuan, the Center warns it could compromise Nigeria’s national resources if not carefully managed.  

In its end-of-year report, the Center highlighted the growing trade imbalance between the two nations, with Chinese imports dominating Nigerian markets. According to Eugene Nweke, Head of Research at the Center, the deal reduces reliance on the U.S. dollar but increases Nigeria’s vulnerability to currency fluctuations and potential resource forfeiture if financial obligations are unmet.  

The report also emphasized the need for transparency and strategic oversight to protect Nigeria’s economic sovereignty and ensure the agreement benefits both nations equitably.