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International logistician, Mr Festus Mbisiogu, has made a case for Nigerian banks to establish their presence in some cities in China, including Beijing, Guangzhou and Shanghai, where importers can be debited from their naira accounts.
Maintaining that many in the business community do not understand the RMB swap with the Chinese government, he urged the Central Bank of Nigeria (CBN) to strengthen collaboration with Chinese financial institutions, particularly in payment systems, cross-border transactions and knowledge-sharing.
He explained that trade depends not only on goods, but also on money, trust and efficient transactions.
Mbisiogu, who is the Chairman of Uzotex Bonded Terminal and Blue Diamond Group, said delayed payments, exchange rate uncertainty and limited access to reliable settlement channels can disrupt supply chains, increase costs and affect consumers.
He made the remarks as special guest speaker at The Logistics Conversation in Yiwu, China, with the theme, “Beyond the bottleneck: Rethinking Nigeria’s logistics challenges and unlocking smarter cargo solutions.”
It was an exclusive, interactive session with select top logistics executives in Yiwu, China, exploring the realities of Nigeria’s logistics industry, the challenges affecting cargo movement and practical solutions for a more efficient, cost-effective and reliable supply chain in Nigeria.
Mbisiogu opined that the country must focus on three priorities. He said: “First is efficient cross-border payments. Nigerian and Chinese financial institutions should collaborate to provide secure, affordable and compliant payment channels for legitimate trade.
“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.
“Financial and logistics efficiency are inseparable. Without timely payments, even a ready shipment can be delayed, disrupting the entire supply chain.”
To buttress his point, Mbisiogu gave examples of the challenges and frustration he encounters in his logistics company.
He therefore made the following submissions: “Most Nigerian businessmen don’t have much information on the RMB swap with the Chinese government.”
He called on them to educate importers through the market section in Nigeria.
He also called upon the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, who was present at the event, to approve banks in Nigeria to establish their presence in China, especially in Beijing, Guangzhou and Shanghai, where importers can be debited from their naira accounts.
He also called for the creation of a platform where Chinese businessmen can be given feedback.
Similarly, he called on them to be more proactive and also commended the governor on his intervention plan.
