China has offered Nigeria a $6bn loan to fund infrastructure projects. It is a credit that is on the table as soon as the projects have been identified. It won’t need an agreement to be signed; it is just to identify the projects and Nigeria accesses it.
The Industrial and Commercial Bank of China Limited, the world’s biggest lender and Nigeria’s Central Bank have also signed an agreement on yuan transactions. This means that the Yuan is free to flow among different banks in Nigeria and it has been included in the forex reserves of Nigeria.
The agreement was reached following a meeting between Pres.,Buhari and Chinese Pres., Xi Jinping. CBN has said it plans to diversify the forex reserves away from the dollar by switching a stockpile into yuan. It will now be easier to settle trade deals in yuan…. those who import from China have been dancing ‘skelewu’ since last night….