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Stanbic IBTC Bank has launched a cross-border payment platform that enables Nigerian businesses to initiate transactions in naira and settle directly in Chinese yuan, aiming to reduce payment delays, currency conversion costs and foreign exchange risks in trade between Nigeria and China.
The platform, known as the Cross-border Interbank Payment System (CIPS), connects the bank’s Nigerian customers to China’s renminbi payment infrastructure through its parent company, Standard Bank Group, which participates directly in the system.
The platform was unveiled in Lagos on Monday, with Stanbic IBTC Chief Executive Officer, Wole Adeniyi, describing it as a development that could make payments between businesses in both countries faster and more efficient.
Stanbic IBTC connects Nigerian businesses to China’s CIPS network
Adeniyi said Standard Bank Group’s direct participation in China’s CIPS allows Stanbic IBTC to extend the payment service to Nigerian businesses without requiring them to navigate several intermediary banking channels.
He explained that the initiative forms part of the group’s strategy to strengthen commercial and financial connections between Nigeria and China by making transactions along the bilateral trade corridor more seamless.
According to him, the platform will enable businesses to transact more efficiently in renminbi while providing a dedicated route for payments to Chinese suppliers and business partners.
The arrangement is expected to be particularly relevant to Nigerian importers, manufacturers and other companies with regular payment obligations in China, where reliance on intermediary currencies and banking channels can add time and cost to transactions.
CIPS could reduce cross-border payment time and costs
Speaking at the launch, Stanbic IBTC Bank’s Head of Transaction Banking, Jesuseun Fatoyinbo, said the platform provides a dedicated clearing and settlement channel for international renminbi payments.
He noted that conventional cross-border payment routes could take between 48 and 72 hours to complete, while transactions processed through CIPS could be concluded within 24 hours.
Fatoyinbo described the platform as a direct payment route into China, reducing the need for multiple banking intermediaries and currency conversions.
He added that combining clearing and settlement functions within the system would simplify payment processes, lower transaction costs and give businesses greater certainty when making international transfers.
For companies involved in Nigeria-China trade, these improvements could help address some of the operational challenges associated with settling payments across different currencies and banking systems.
CBN highlights benefits for Nigeria’s trade payment infrastructure
The Director of the Trade and Exchange Department at the Central Bank of Nigeria (CBN), Aderinola Shonekan, described the platform’s introduction as an important development in Nigeria’s trade payment infrastructure.
Shonekan, who was represented at the event by Nnenna Ezekannagha, an Assistant Director in the department’s Lagos office, said Nigerian businesses had historically faced delays, multiple currency conversions and settlement risks when relying on intermediary currencies for international trade.
She explained that Stanbic IBTC’s integration with CIPS would help address some of these challenges by establishing a direct payment channel through which Nigerian businesses could initiate transactions in local currency and settle in renminbi.
The CBN official characterised the initiative as a private sector contribution to the regulator’s trade facilitation and currency diversification policies.
She also reaffirmed the central bank’s commitment to supporting financial innovations that improve trade infrastructure, advance financial inclusion and preserve banking system stability.
Direct naira-yuan payments target growing Nigeria-China trade
China remains one of Nigeria’s major trading partners, with commercial relationships spanning manufacturing, consumer goods, industrial equipment and other sectors.
Businesses operating along this trade corridor often need to make payments to suppliers and partners across different currencies and financial systems. The introduction of a direct payment channel through CIPS is intended to simplify that process by reducing dependence on intermediary currencies and multiple banking institutions.
By connecting Nigerian businesses to China’s renminbi payment infrastructure, Stanbic IBTC is expanding the payment options available for bilateral trade. The platform also adds to efforts to improve cross-border payment efficiency and support greater use of local currencies in international transactions.
Its potential impact will depend on how effectively businesses adopt the service and the extent to which it delivers the expected improvements in settlement speed, transaction costs and foreign exchange risk management.
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