The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has disclosed that Nigeria is developing a new framework to facilitate the use of national currencies in bilateral trade settlements.
Speaking during a press briefing at the IMF/World Bank Annual Meetings in Washington DC, Cardoso explained that although Nigeria had previously experimented with local currency trade agreements, the initiative did not deliver the desired outcomes.
“We have had an experiment with that (switching to national currencies in bilateral trade). And to be frank, it did not work out very well for us,” Cardoso said.
“That is not to say that we are not interested in doing this. We are. And we are really at an elementary stage of putting up a framework, now that our currency is more competitive, to be able to ensure that it is a win-win for everybody.”
The CBN governor noted that the new approach would be more cautious and structured, aimed at ensuring that future local currency trade arrangements are mutually beneficial for Nigeria and its trading partners.
He added that the plan forms part of broader efforts to strengthen the naira’s competitiveness and reduce reliance on foreign exchange in cross-border transactions.
Economic analysts view the initiative as a potential step toward deepening regional financial integration, especially with African and Asian trading partners, if effectively implemented.
