Stanbic IBTC Bank has introduced a cross-border payment platform enabling Nigerian businesses to initiate transactions in naira and settle directly in Chinese yuan, reducing payment delays, currency conversion costs and foreign exchange risks in trade between the two countries. The platform, called the Cross-border Interbank Payment System, connects the bank's Nigerian customers to China's renminbi payment infrastructure through its parent company, Standard Bank Group, which participates directly in China's CIPS. The bank unveiled the platform in Lagos on Monday.
Chief Executive Officer Wole Adeniyi said Standard Bank Group's direct participation in China's CIPS allowed Stanbic IBTC to extend the service to Nigerian businesses without requiring them to navigate multiple intermediary payment channels. He described the initiative as part of the group's strategy to strengthen commercial and financial connections between Nigeria and China. Head of Transaction Banking Jesuseun Fatoyinbo said the platform provides a dedicated clearing and settlement channel for international renminbi payments, allowing transactions to be completed within 24 hours compared with the 48 to 72 hours required by conventional cross-border payment routes.
Fatoyinbo explained that the platform operates as a direct payment route into China, reducing the need for multiple banking intermediaries and currency conversions. The system combines clearing and settlement functions to simplify payment processes, reduce transaction costs and improve certainty for businesses. The platform is expected to benefit Nigerian importers, manufacturers and companies that regularly make payments to suppliers and business partners in China.
Aderinola Shonekan, Director of the Trade and Exchange Department at the Central Bank of Nigeria, described the launch as an important development in the country's trade payment infrastructure. Represented at the event by Assistant Director Nnenna Ezekannagha, Shonekan said Nigerian businesses had historically faced delays, multiple currency conversions and settlement risks from relying on intermediary currencies for international trade. She said the integration of Stanbic IBTC into CIPS would address these challenges by creating a direct payment channel through which Nigerian businesses could initiate transactions in local currency and settle in renminbi.
Shonekan described the initiative as a private sector contribution to the CBN's trade facilitation and currency diversification policies. She reaffirmed the regulator's commitment to supporting financial innovations that improve trade infrastructure, promote financial inclusion and safeguard banking stability. China is one of Nigeria's major trading partners, with businesses in both countries maintaining substantial commercial relationships across manufacturing, consumer goods, industrial equipment and other sectors.
For Nigerian importers and manufacturers that trade regularly with China, the platform means lower costs and faster payment processing in local currency rather than navigating multiple intermediary currencies and banking channels.