Nigeria looks to China for foreign exchange support

President Muhammadu Buhari visited China in mid-April, accompanied by ten government ministers, and returned with a number of trade agreements. Buhari secured a $6bn loan for infrastructure projects, an increase in the amount of Nigerian foreign reserves held in yuan, a deal with Industrial and Commercial Bank of China (ICBC) to extend the use of the Chinese currency in trade finance arrangements, and the opening of negotiations on a ‘Panda’ bond, denominated in yuan and marketed in China. ICBC also agreed to lend $2bn to Dangote Group for two cement plants.