Chairman of Uzotex Bonded Terminal and Blue Diamond Group, Festus Mbisiogu, has called on the Central Bank of Nigeria (CBN) to facilitate the establishment of Nigerian banking operations in major Chinese commercial cities to ease cross-border payments and reduce the difficulties faced by Nigerian importers.
He said Nigerian banks should establish a presence in Beijing, Guangzhou and Shanghai, where importers could access payment arrangements that would enable transactions to be settled directly from their naira accounts.
Mbisiogu also expressed concern that many Nigerian traders remained inadequately informed about the currency swap arrangement between Nigeria and China, urging the CBN to intensify public enlightenment and collaboration with Chinese financial institutions.
Speaking at the Logistics Conversation in Yiwu, China, yesterday, he identified payment delays, exchange-rate uncertainty and limited access to reliable settlement channels as major obstacles to efficient cargo movement and international trade.
The event, themed “Beyond the Bottleneck: Rethinking Nigeria’s Logistics Challenges and Unlocking Smarter Cargo Solutions,” brought together selected logistics executives to examine the challenges affecting cargo movement and explore opportunities for more efficient and affordable supply chains.
Mbisiogu argued that international trade depended not only on the movement of goods but also on trust, access to finance and efficient payment systems.
According to him, delays in settling transactions could disrupt supply chains, increase operating costs and ultimately affect consumers.
He identified three priorities requiring attention: efficient cross-border payments, improved access to trade finance and greater transparency in commercial transactions.
“First is efficient cross-border payments. Nigerian and Chinese financial institutions should collaborate to provide secure, affordable and compliant payment channels for legitimate trade,” he said.
“Second, improved access to trade finance. Small and medium-sized businesses need practical financing solutions to purchase goods, fulfil orders and expand.
“Third is trust and transparency. Clear documentation, predictable settlements, fraud prevention and responsible financial innovation are essential to protecting businesses and strengthening confidence.”
He maintained that improving the logistics sector without addressing financial transaction difficulties would leave major obstacles to international trade unresolved.
“Financial and logistics efficiency are inseparable. Without timely payments, even a ready shipment can be delayed, disrupting the entire supply chain,” he said.
Drawing from his experience in the logistics industry, Mbisiogu said Nigerian importers frequently encountered difficulties arising from inadequate information about available payment arrangements and the processes required to access them.
“Most Nigerian businessmen don’t have much information on the RMB swap with the Chinese government,” he said.
He urged relevant financial institutions to work with business associations and market operators to educate importers about the arrangement and its potential benefits.
Mbisiogu also appealed to CBN Governor Yemi Cardoso, who attended the event, to support arrangements that would enable Nigerian banks to serve customers conducting business in China.
He further proposed the establishment of a feedback platform through which Chinese business operators could communicate challenges and suggestions relating to trade transactions with Nigeria.
The logistics operator commended the CBN governor for his intervention initiatives and urged the bank to adopt a more proactive approach to addressing payment difficulties affecting legitimate international trade.
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