Wednesday, 20 April 2016

China will start importing goods from Nigeria - CBN governor

China will start importing
goods from Nigeria - CBN
governor
– China will soon start to import goods
from Nigeria, according to the CBN’s
governor
 – Godwin Emefiele also said Nigeria will
become China’s principal trading hub in the
West African region
– The governor’s revelations come shortly
after President Muhammadu Buhari’s visit
to the Asian economic giant
China will soon begin to import goods from
Nigeria, the Central Bank of Nigeria’s (CBN)
governor Godwin Emefiele has said.


It is expected that the move will help narrow
the very wide trade gap between the two
countries.
Emefiele said the federal government is
talking with China so it would also be
importing some of its own items from
Nigeria.
Speaking at a press conference at the World
Bank headquarters in Washington on the last
day of the 2016 World Bank/IMF spring
meeting, he also said part of Nigeria’s deal
with China is that the country will
become the Asian country’s trading hub in
West Africa.
CBN governor Godwin Emefiele’s policies on
the Naira have continued to attract
controversy
“China has appointed South Africa as its
trading hub for Remnibi transactions in the
south African region, has appointed Kenya as
its trading hub for east and central Africa,” he
said.
“And Nigeria, the mandate that we signed is
for us to be appointed as the trading hub in
the West African sub region. In all, we expect
that it is going to be mutually beneficial
“We are talking to China so that it would also
be importing some of its own items from
Nigeria, so that the trading balance can be
sort of reduced.
“Will Nigeria benefit from this? I want to say
categorically that Nigeria benefits from this.
It’s less pressure on the dollar and
consequently on our reserves.”
The CBN governors’ revelations come shortly
after President Buhari’s trip to China
Emefiele added that the CBN will not change
its current policy of pegging the Naira to the
US Dollar, and will not devalue the currency
without making necessary structural reforms.
“For the first time, we are taking structural
reforms seriously in the country. We have
always talked about, oh, when you do an
adjustment, follow it up with structural
reforms.
“But we are saying this time we’ve done an
adjustment and we are following it up with
structural reform, where we are saying we
must diversify the economy away from
depending on oil.
“I’ve said it that we have seen people who are
coming in an investing, during the china trip,
we saw people who said they can now come
in instead of exporting those items into
Nigeria, they can now bring those plants into
Nigeria and begin to produce those things in
Nigeria because our climate is good,” he said