Stanbic IBTC Bank has introduced a cross-border payment service that allows Nigerian businesses to make payments in naira for settlement in Chinese yuan and reduce the dependence on the US dollar and intermediary banks when conducting transactions with suppliers in China.
The new service, launched in Lagos on November 9, 2026, is expected to reduce international payment processing times from between 48 and 72 hours to approximately 24 hours.
The arrangement gives Stanbic IBTC customers access to China’s Cross-Border Interbank Payment System (CIPS) through Standard Bank Group, the bank’s parent company and a direct participant in the Chinese settlement network.
For Nigerian businesses importing machinery, electronics, industrial equipment, construction materials and consumer goods from China, the development provides an alternative to conventional payment arrangements that often involve multiple banks and currency conversions.
Previously, businesses making payments to Chinese suppliers could be required to convert naira into US dollars before the funds were exchanged into yuan, depending on the payment arrangements.
Such transactions could expose importers to additional conversion charges, exchange-rate fluctuations and settlement delays.
The new arrangement simplifies this process by allowing eligible payments to originate in naira and reach Chinese beneficiaries in renminbi without necessarily passing through the dollar.
Stanbic IBTC Chief Executive Officer Wole Adeniyi said the initiative was made possible by Standard Bank Group’s participation in China’s international payment infrastructure.
He explained that the arrangement would strengthen commercial relationships between Nigerian businesses and their Chinese counterparts by providing a more efficient payment system.
The bank’s Head of Transaction Banking, Jesuseun Fatoyinbo, disclosed that the platform was designed to improve transaction speed and reduce the number of intermediaries involved in processing payments.
According to the bank, transactions that previously required two to three days could now be completed within approximately one day, depending on the applicable processing requirements.
The development is particularly relevant to Nigerian manufacturers and retailers that depend heavily on imported inputs and finished products from China.
China remains one of Nigeria’s largest trading partners, supplying machinery, electrical equipment, vehicles, industrial components and consumer products used across several sectors of the economy.
Delays in settling payments to overseas suppliers can disrupt production schedules, shipment arrangements and inventory management, particularly for small and medium-sized businesses operating with limited working capital.
A more predictable payment system could therefore help businesses manage procurement schedules and reduce some of the financial uncertainty associated with international transactions.
However, the introduction of direct naira-to-yuan settlement does not eliminate foreign exchange risk.
Nigerian importers will still be exposed to movements in the exchange rate between the naira and the Chinese currency, while transaction costs will depend on the rates and charges applied by participating financial institutions.
The availability of yuan liquidity and the willingness of Chinese suppliers to accept settlement through the arrangement will also influence its effectiveness.
The Central Bank of Nigeria welcomed the initiative, describing it as a positive development for trade facilitation and the diversification of international payment channels.
The Director of the CBN’s Trade and Exchange Department, Aderinola Shonekan, represented at the launch by Nnenna Ezekannagha, said Nigerian businesses had faced persistent difficulties with cross-border settlements because of currency conversion requirements and delays associated with intermediary financial institutions.
The regulator considers the new payment arrangement consistent with efforts to improve the efficiency of international trade transactions and reduce unnecessary settlement costs.
Beyond the immediate benefits to importers, the service could support broader efforts to expand the use of local currencies in international commerce.
Nigeria and China have maintained financial cooperation aimed at facilitating bilateral trade, although the US dollar continues to play a dominant role in international payments.
The introduction of an additional settlement channel could gradually reduce the need for some dollar-based transactions, but its wider impact on Nigeria’s foreign exchange market will depend on the volume of trade payments eventually processed through the system.
For Stanbic IBTC, the service also strengthens its position in trade finance and international transaction banking at a time when Nigerian businesses are seeking faster and more predictable ways to pay overseas suppliers.
The commercial significance of the initiative will ultimately be measured by the cost savings achieved by businesses, the reliability of settlements and the extent to which Nigerian importers adopt the new payment channel.