•With N7.38 trillion trade in June, VP declares China as Nigeria’s top trading partner, capital inflow from BRICS hits $1.27 billion from $438.72m
•FirstBank boss seeks elimination of barriers to flow of trade, investment between Africa, China
•Chinese bank vows to deepen footprint in Nigeria, encourages use of local currencies in trade between African countries and China
CHIGOZIE AMADI
Vice President Kashim Shettima, yesterday, called for collective efforts to drive sustainable growth in Nigeria and Africa, in general, amid complex development challenges.
Shettima reaffirmed the country’s commitment to alliances who “have our best interests at heart and are willing to support our growth and development in a transparent and systematic manner”.
He spoke at the opening of the 2024 China-Africa Inter-Bank Association (CAIBA) Forum, with the theme, “Joining Hands to Advance Modernisation and Strengthening China-Africa Trade, Industrialisation and Economic Diversification.”
The forum was hosted by FirstBank in Abuja.
Chief Executive, FirstBank Group, Mr. Olusegun Alebiosu, called on CAIBA member states to recommit to the ideals and goals of the association by exploring innovative ways to reduce and eliminate existing barriers to the flow of trade and investment between Africa and China.
Vice President of China Development Bank (CDB), Mr. Wang Weidong, said it will continue to leverage experience and expertise in investment and financial cooperation with Africa, and strengthen exchanges with African financial institutions.
Weidong urged greater use of local currencies in trade between African countries and China, delivery of more projects under the RMB financing window in Africa, and achievement of exemplary results to improve the quality and efficiency of financial services to Africa.
He expressed satisfaction with the growing inflow of foreign capital from BRICS countries, which amounted to $1.27 billion as of June 2024, a substantial increase from $438.72 million during the same period in 2023.
Represented by his Special Adviser, General Duties, Dr. Aliyu Modibo, Shettima said the influx of foreign capital reflected the deepening of the country’s development partnerships and the “mutual trust that continues to grow between us”.
He said President Bola Tinubu’s Renewed Hope Agenda sought to drive inclusive and sustainable development, and expressed delight that the country’s financial institutions remained at the forefront of the intervention for development.
The vice president commended FirstBank for leading the charge in fostering stronger banking and financial collaborations between African banks and the China Development Bank (CDB).
He said with total trade transactions valued at N7.38 trillion as of June 2024, China remained “Nigeria’s number one trading partner”.
According to him, the theme of the forum aligned with the priorities of the Tinubu administration to boost trade, foster commerce, and diversify the economy through well- structured, mutually beneficial partnerships.
Shettima pointed out, “This is not a goal that can be achieved in isolation, but rather through collaborative efforts with trusted allies and partners, such as China, who share our aspirations for a prosperous future.
“Nigeria has always been open to strategic alliances that support our domestic growth goals. This explains our active engagement with the BRICS nations, even as a non-member state, as seen in our participation in the BRICS Summit held in South Africa last year. Our commitment to these relationships was further solidified at the October 2024 BRICS Summit in Russia.”
He stated that Tinubu’s diplomatic efforts to strengthen ties with China were clear evidence of his commitment to the strategic partnership further highlighted by the president’s official visit to China in September 2024, where he met with President Xi Jinping.
Shettima said, “During this meeting, five key Memoranda of Understanding (MoUs) were signed, marking a significant step in our collaboration, including initiatives related to the Belt and Road Initiative in Nigeria.
“As a nation, Nigeria remains committed to its alliances with those who have our best interests at heart and are willing to support our growth and development in a transparent and systematic manner.”
In his remarks at the forum, Alebiosu said the CAIBA platform emerged in recognition of the growing trade, investment and development ties between China and Africa.
He said the pursuit of stronger correspondent banking and financial systems ties between Africa and China was in the interest of both parties, adding that FirstBank remains fully committed to the achievement of the over-arching CAIBA objective within the shortest time frame possible.
Alebiosu said it was quite common to see several Chinese companies operating across key sectors of the economy in many African countries, where they were instrumental in driving socio-economic growth and infrastructural development.
Similarly, he said several businesses on the African continent had primary Chinese trading partners either as buyers of minerals, metals and other raw materials or suppliers of finished goods, such as electronics, phones, and equipment.
Alebiosu further underscored the need for stronger partnership between Africa and China as a panacea for driving further improvement in trade and the overall socio-economic transformation of the two regions.
He said, “As an institution, through our dedicated Chinese desks, manned with both Chinese nationals and Mandarin-speaking personnel, we have taken concrete steps to improve our understanding of the Chinese culture, business philosophy and the needs of the numerous Chinese firms operating across all our operating countries.
“At FirstBank, we are also poised to double-down on our coverage of the Chinese market through expansion of our business presence beyond Beijing to other important commercial centres in China, including Guangdong and Shanghai. These steps reflect the strategic importance that FirstBank has ascribed to China in particular and Chinese businesses in general.”
The vice president of CDB, Weidong, said the bank will continue to leverage experience and expertise in investment and financial cooperation with Africa, and strengthen exchanges with African financial institutions.
He said the bank intended to respond to Africa’s industrialisation initiatives and expand the scope and capacity for cooperation between China and Africa.
He added that the bank will also support capacity building, green development, and financial innovation, among others.
Weidong said, “CDB will utilise China-Africa development finance special funds to support infrastructure in Africa, promote the African continental free trade area, and improve China-Africa economic and trade cooperation.
“We will continue to utilise the special loan for African SMEs to enhance knowledge sharing and technology transfer to promote Africa’s industrialisation and economic diversification.
“CDB will support African countries to industrialise in a green and balanced way, develop renewable energy, and achieve inclusive, predictable, and sustainable growth and transition.
“CDB will use various ways, including significant loan, on-lending, equity investments, and tripartite cooperation to support Africa’s industrialisation.”
He added, “We encourage more use of local currencies in trade between African countries and China, deliver more projects under the RMB financing window in Africa, and achieve more exemplary results to improve the quality and efficiency of financial services to Africa.”
Managing Director of CCECC Nigeria Limited, Mr. Wang Xixue, said partners must work to clear existing challenges in financial cooperation.
Xixue said, “In recent years, China and African nations, including Nigeria, have depended on their collaborations in the financial sectors. As we all know, at the FOCAC Beijing Summit held three months ago, China and Africa decided to establish a new type of strategic partnership.
“And also, China announced to provide 360 billion RMB in financial support to Africa. I think this is also good news to all the partners here today. And of course, these efforts have not only stimulated growth, but have also provided essential funding for infrastructure development and industrialisation in African countries.
“However, we recognise that challenges remain in our financial cooperation. But I believe that all the partners will work more closely together to address these challenges. For example, stressing policy alignments, both China and African countries, including Nigeria, should enhance communications and coordination in financing policies, regulations, and standards, promoting a more open and transparent financial environment.”
Xixue further stressed the need to promote financial innovations and deepen cultural exchanges. He said financial cooperation was not just about the flow of funds. He said it also the convergence of ideas and cultures, which will strengthen collaborations in financial education and professional talent development to provide a robust talent foundation for China and African financial cooperation.
