By Sandra Chukwunyere
The Nigeria-China currency swap deal can be beneficial to Nigeria if there is adequate diversification of the economy which encourages productive and localized industrialization that can enhance exportation rather than an imbalance trade of importation of Chinese products alone, the Importers Association of Nigeria (IMAN) has warned.
Speaking out of patriotism for Nigeria against business gains, the Director, Customs and Extant, Trade Facilitation, IMAN Special Taskforce, Dr. Ibrahim Mahmoud Mubarak, stressed the need to develop Nigerian industrial sector with the provision of critical infrastructures inorder to put the country in a vantage position in the currency swap deal.
Dr. Mubarak, who spoke at the Maritime Reporters Association of Nigeria (MARAN) breakfast meeting on the Nigeria-Peoples Republic Of China currency swap deal with the theme “Navigating the Nigeria-Peoples Republic Of China Currency Swap: Opportunities and Challenges for Import, Export and Maritime Business,” in Lagos on Tuesday, emphasized that Nigeria needs to balance the swap deal through growth in her manufacturing sector.
Though the importers association director highlighted opportunities offered and advantages of currency swap deal, he nonetheless maintained that its challenges can be devastating to the economy.
According to him, without industrial growth on the part of Nigeria, there will be increased payment and settlement imbalance between her and China.
Dr. Mubarak added that the swap deal could lead to less production and low consumption of domestic products as well as reduction in foreign reserve due to super-sovereign reserve currency effect.
In his words: “Economically, if we subject the relationship between Nigeria and China to further analytical review, it could be better explained within the dependency theoretical foundation, within which the trade flow of the relationship between the two countries clearly favors China as the senior partner in the relationship.”
Also speaking, an erstwhile Director, Federal Ministry of Transportation, Chief (Mrs) Chinwe F.O Ezenwa, commended MARAN for organizing the very important sensitization breakfast meeting. She confessed that it was MARAN that made her aware of the Nigeria -China currency swap deal, alluding to the need to get all those who are into international trade well informed of the currency swap deal.
Chief (Mrs) Ezenwa hinted that without knowing of the currency swap deal, she went on a business trip to China in January this year and did all her transactions in dollars. She reiterated the need for proper enlightenment of all importers, exporters and every Nigerian involved in international businesses of the existence of Nigeria-China currency swap deal.
The former Director described Chinese as unfriendly friends, warning that Nigerians should be very careful in dealing with them so as not to be ripped off. She said that the currency swap deal should not be for importation of Chinese goods alone but for technological transfer and development of symbiotic relationships. According to her, the two sides should benefit from the arrangement.
She called on the Central Bank of Nigeria (CBN) to enlighten members of Manufacturers Association of Nigeria (MAN), Small and Medium Scale industrialists to leverage on the currency swap deal for their optimum benefits.
