Nigeria’s trade relationship with China has never been this stronger as it has more than doubled in the last four years, having increased by 157 percent to N1.49 trillion in the first half (H1) of 2022.
According to data obtained by Investors King from the National Bureau of Statistics (NBS), Nigeria imported goods worth N1.49 trillion from China in Q2 2022, and exported goods worth N71.11 billion. This showcases a huge trade imbalance between both countries, with China having an edge due to its robust manufacturing sector compared to Nigeria.
Reacting to the trade imbalance between both countries, the Chinese ambassador to Nigeria, His Excellency, Cui Jianchun noted that China is in support of getting more products from Nigeria.
Meanwhile, the Chinese Ambassador further disclosed that some Chinese banks are weighing the prospect of setting up branches in Nigeria to leverage the growing level of transactions between both countries.
“We are looking to get Chinese banks into Nigeria to facilitate transactions if the Central Bank of Nigeria is ready,” Jianchun said in Lagos at BusinessDay’s CEO Forum, tagged Managing into the Future: Unlocking the Power of the Platform Economy,
The trade relationship between Nigeria and China started to increase astronomically when both countries signed a currency swap deal in 2018.
The swap deal was put in place to facilitate transactions between Nigeria and China to cut out intermediaries in terms of value creation, extraction, and addition, without necessarily having to go through a reserve or third currency.
The currency swap deal which was a $2.4 billion three years agreement ended in 2021 but has since been renewed.
Although the swap deal was expected to boost trade relations between both countries and reduce the need to use the dollar in bilateral trade, the deal has only widened the trade imbalance between China and Nigeria.
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Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption
The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.
The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.
The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.
The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.
This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.
Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.
The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.
Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.
Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion
The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.
Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.
During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.
He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.
Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.
The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.
Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.
The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.
The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.
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