Naira, Yuan Currency swap would kill Nigerian industries


The only presumed benefit to Nigeria in the celebrated Chinese currency swap us is that it is going to put less pressure on our dollar forex account.

This of course is not in our long term interest after all a strong naira is not in our industrialisation best interest since that only encourages more imports and less import substitution industrialisation.

China will have more of its goods dumped in Nigeria while at the same time getting critical industrial raw materials from us at a give away price. This is especially because of Chinese traders’ easy access to both yuan and Maura; and more so because China could strategically sell its goods at below cost of production and. market price.

Most importers of Chinese goods to Nigeria are actually the former’s traders’. For this reason, they will do everything to bribe our bankers to give them preferential access to the yuan.

Also, these Chinese could easily target our strategic and pro-industrialisation brownfield industries, instead of greenfield industries. This can be done simply to undermine the use of these brownfield industries to promote Nigeria’s industrialisation.

The same way some Indians targeted Ajaokuta simply to kill it so that we continue importing steel products from India’s Tata.

Odilim Enwegbara,

Apo, Abuja