Nigeria Targets Chinese Capital To Boost Financial Markets

The Central Bank of Nigeria (CBN) is seeking to attract Chinese capital into the country’s financial markets to expand investment flows, improve access to long-term financing and strengthen cross-border payments and trade.

CBN Governor Olayemi Cardoso disclosed this at the closing press briefing of the 2026 Annual Meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok, Thailand, following discussions with the Governor of the People’s Bank of China, Pan Gongsheng, on opportunities to deepen financial cooperation between both countries.

Cardoso said Nigeria was particularly interested in attracting Chinese investors into its financial instruments, noting that despite China’s enormous financial resources, its participation in Nigeria’s financial markets had remained limited.

“Bear in mind that, despite the considerable liquidity available in China, there has not been much investment in Nigerian financial instruments over time. This could be an opportunity to change that trajectory and generate greater interest from Asian markets in Nigerian instruments and African instruments generally.”

The initiative is part of the apex bank’s broader strategy to attract long-term capital from Asian markets, diversify sources of investment and translate Nigeria’s ongoing economic reforms into increased funding for businesses and productive sectors.

Cardoso said discussions with the Chinese central bank governor also covered cross-border payments, settlement arrangements, financial technology and trade finance, with a view to reducing transaction difficulties and facilitating trade and investment between both economies.

“We are interested in seeing how we can deepen collaboration between institutions, including Chinese banks, the Central Bank of Nigeria, commercial banks and other institutions, particularly in the payments system,” he said.

The CBN governor said Nigeria would build on the discussions during his forthcoming visit to Beijing, where technical teams from both countries would examine practical areas of cooperation.

He added that the apex bank was interested in learning from China’s payment infrastructure, which he described as robust, while identifying opportunities for peer reviews between the People’s Bank of China and the CBN.

“We want to avoid a situation in which these engagements become merely a talk shop,” Cardoso said.

The proposed engagement comes as Nigeria seeks to widen its access to international capital and strengthen financial relationships with Asian economies, particularly at a time when businesses require sustainable financing to expand operations, increase production and support trade.

Cardoso said recent improvements in Nigeria’s foreign exchange market had strengthened the prospects for attracting long-term capital, particularly investments denominated in naira.

He cited the narrowing of the premium between the official and parallel market exchange rates from approximately 60 per cent to between three and four per cent, arguing that the reduction in the gap had eased currency-related uncertainty and improved the prospects for structuring long-term financial products.

According to him, the risks previously associated with exchange rate volatility and sharp currency depreciation have receded considerably, creating greater opportunities for development finance institutions to mobilise and deploy long-term capital.

The CBN governor, however, stressed that the apex bank would maintain its focus on monetary and price stability, while development finance institutions would be expected to channel funding into productive sectors of the economy.

He specifically identified the Africa Finance Corporation, Bank of Industry and Development Bank of Nigeria as institutions expected to play key roles in directing capital towards businesses and sectors capable of supporting economic growth.

The CBN’s engagement with China is expected to explore opportunities for greater participation by Chinese financial institutions in Nigeria’s markets, alongside improved payment systems and financing arrangements that could facilitate trade and investment.

For Nigeria, attracting a greater share of Chinese capital could provide an additional source of funding for financial instruments and businesses, while deeper cooperation between both countries’ financial institutions could improve the channels through which trade-related payments and investments are processed.