Stanbic IBTC Bank has introduced a cross-border payment platform that allows Nigerian businesses to initiate transactions in naira and settle directly in Chinese yuan, in a move aimed at reducing payment delays, currency conversion costs and foreign exchange risks in trade between both countries.
The platform, known as the Cross-border Interbank Payment System, connects the bank’s Nigerian customers to China’s renminbi payment infrastructure through its parent, Standard Bank Group, which is a direct participant in the system.
The bank unveiled the platform in Lagos on Monday, with its Chief Executive Officer, Wole Adeniyi, saying the arrangement would make cross-border transactions between Nigeria and China faster and more efficient.
Adeniyi said Standard Bank Group’s direct participation in China’s CIPS enabled Stanbic IBTC to extend the service to Nigerian businesses without requiring them to navigate multiple intermediary payment channels.
He said the initiative formed part of the group’s strategy to strengthen commercial and financial connections between Nigeria and China.
According to him, the platform would help businesses transact more seamlessly in renminbi while improving the efficiency of payments along the bilateral trade corridor.
Also speaking at the launch, Head of Transaction Banking at Stanbic IBTC Bank, Jesuseun Fatoyinbo, said the platform provides a dedicated clearing and settlement channel for international renminbi payments.