Nigerian Banks, First Bank, CBN, and CDB Push for Partnership Between Chinese and African Banks.

The Central Bank of Nigeria (CBN), First Bank Plc, and China Development Bank have called for a partnership between African banks and their Chinese counterparts. The meeting was held on Wednesday, November 28th, 2024, at the 2024 China-Africa Inter-Bank Association (CAIBA) Forum. The gathering emphasised the importance of fostering robust partnerships between African and Chinese banks to propel trade, investments, and development across the continent.

Olusegun Alebiosu, CEO of First Bank Group, highlighted that the ongoing trade between China and Africa led to the emergence of CAIBA. He noted that Chinese companies have become instrumental in driving socio-economic growth and infrastructural development across Africa. Also, African businesses have established strong trading relationships with Chinese partners.

Strengthening Banking and Financial Cooperation Between Africa and China

Alebiosu emphasised the need for stronger correspondent banking and financial systems ties between Africa and China. This synergy, he believes, will yield mutual benefits for both parties. As a co-host of the forum alongside China Development Bank, First Bank reaffirmed its commitment to CAIBA’s objectives.

The 2024 CAIBA Forum, themed “Joining Hands to Advance Modernisation and Strengthening China-Africa Trade, Industrialisation, and Economic Diversification,” highlights the importance of a collaboration between Africa and China. Alebiosu expressed FirstBank’s dedication to facilitating the collaboration. We have Chinese desks to be manned by both Mandarin-speaking personnel and Chinese nationals to enhance understanding and support for Chinese firms across its operating countries.

Adetona Adedeji, CBN Director of Banking Supervision, assured the audience of the apex bank’s readiness to support Nigerian banks in forging stronger ties with their Chinese counterparts. He emphasised the need for economic diversification, citing that as a country we have suffered the Dutch Disease, thus the need to partner with other players across the globe. 

Advancing Trade, Industrialization, and Economic Diversification

Vice President Kashim Shettima announced that Nigeria has strengthened its development partnerships with BRICS nations, a group of five countries comprising Brazil, Russia, India, China, and South Africa. The partnership is attracting $1.27 billion in foreign capital inflows as of June 2024. This significant increase from $438.72 million in the previous year demonstrates Nigeria’s deeper relationships with strategic partners.

Shettima emphasised the importance of nurturing bilateral relationships with nations like China, which remains Nigeria’s largest trading partner, with a total trade value of N7.38 trillion as of June 2024. He reaffirmed Nigeria’s commitment to alliances that support its growth and development goals.

He said it was impressive that Nigeria’s financial institutions are keying into these interventions for development and commended First Bank for leading the charge in fostering stronger banking and financial collaborations between African banks and the China Development Bank.

In a remark, Wang Weidong, Vice President, China Development Bank, outlined how financial cooperation plays a principal role in promoting modernisation for China and Africa.

According to him, CAIBA has been promoting China-Africa trade, industrialisation, and economic diversification. It has also been a positive approach to building cooperation, deepening investment and financial cooperation with Africa, and opening new prospects for China-Africa economic and trade cooperation.”.

He assured that the association will support African countries to industrialise in a green and responsible way, develop and renew our land, and achieve inclusive, predictable, and sustainable growth and transition to prosperous financial innovation.

“CAIBA will use various ways, including significant loans, on-demand equity investments, and tripartite cooperation to support Africa’s industrialization. We encourage more use of cryptocurrencies in trade between African countries and China”, he added