-
The platform allows Nigerian businesses to initiate payments in naira for settlement in Chinese yuan.
-
It connects Stanbic IBTC customers to China’s Cross-Border Interbank Payment System through Standard Bank Group.
-
The service is expected to reduce reliance on intermediary currencies, payment delays, and foreign exchange risks in Nigeria-China trade.
November 11, (THEWILL) – Stanbic IBTC Bank has introduced a cross-border payment platform that enables Nigerian businesses to initiate transactions in naira and settle directly in Chinese yuan, in a move aimed at simplifying trade payments between Nigeria and China.
The platform connects the bank’s Nigerian customers to China’s Cross-Border Interbank Payment System (CIPS) through its parent company, Standard Bank Group, which is a direct participant in the Chinese payment infrastructure.
The bank unveiled the service in Lagos on Monday, with its Chief Executive Officer, Wole Adeniyi, saying it would make cross-border transactions between the two countries faster and more efficient.
Adeniyi said Standard Bank Group’s participation in CIPS had enabled Stanbic IBTC to extend the payment service to Nigerian businesses without requiring them to navigate multiple intermediary banking channels.
He said the initiative was part of the group’s strategy to strengthen commercial and financial connections between Nigeria and China, adding that it would help businesses transact more seamlessly in renminbi.
How the payment platform works
The platform provides a dedicated channel for international renminbi payments, allowing Nigerian customers to initiate transactions in naira while the beneficiary receives settlement in yuan.
Speaking at the launch, Stanbic IBTC’s Head of Transaction Banking, Jesuseun Fatoyinbo, said the system combines clearing and settlement functions to simplify international payment processes.
He said the arrangement could reduce transaction costs, improve settlement certainty and make payments to Chinese suppliers more efficient.
The service is expected to benefit Nigerian importers, manufacturers and other businesses that regularly pay suppliers and commercial partners in China, particularly those exposed to delays and additional costs associated with intermediary currencies.
READ ALSO:
CBN backs payment innovation
The Director of the Trade and Exchange Department at the Central Bank of Nigeria, Aderinola Shonekan, described the launch as an important development in Nigeria’s trade payment infrastructure.
Represented by the Assistant Director in the department’s Lagos office, Nnenna Ezekannagha, Shonekan said Nigerian businesses had historically faced delays, multiple currency conversions and settlement risks because of their reliance on intermediary currencies for international trade.
She said Stanbic IBTC’s integration with CIPS would address some of these challenges by providing a payment channel through which Nigerian businesses could initiate transactions in local currency and settle in renminbi.
Shonekan described the initiative as a private-sector contribution to the CBN’s trade facilitation and currency diversification policies.
She also reaffirmed the regulator’s commitment to supporting financial innovations that improve trade infrastructure, promote financial inclusion and preserve banking system stability.
China remains one of Nigeria’s major trading partners, with commercial activities spanning manufacturing, consumer goods, industrial equipment and other sectors.
The new payment channel could ease some of the financial frictions affecting businesses operating along the trade corridor, although its impact will depend on adoption, transaction costs and the efficiency of settlement arrangements.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
