Stanbic IBTC Launches Naira-RMB Payment Platform To Fast-Track Nigeria-China Trade

The CIPS will drastically cut transaction processing times from several days down to a matter of hours, minimise exchange-rate exposure risks for local businesses, and inject predictability into the bilateral trade corridor between Nigeria and China.  

CIPS was launched on Monday in Lagos by Chief Executive Officer of Stanbic IBTC Bank, Mr. Wole Adeniyi, in an event, titled, “CIPS Go-Live Ceremony.”

Adeniyi said, “What really made it possible for us to do this is because our group, Standard Bank Group, is a direct participant in the China cross-border interbank payment system.

“As a direct participant, we are able to connect and bring this service seamlessly to our clients in Nigeria.”

He said the platform would drive business between Nigeria and China as part of the Stanbic IBTC and Standard Bank Group’s goal of strengthening transactions and connection between Nigeria and China.

In his presentation, Head, Transaction Banking, Stanbic IBTC Bank, Mr. Jesuseun Fatoyinbo, said CIPS would support faster, efficient, and reliable cross-border RMB clearing and settlement.

According to Fatoyinbo, CIPS is a purpose built clearing and settlement rail for international RMB payment.

He said, “It is really about connecting you directly into that destination. It is like a direct flight out of Lagos for your payment into China.

“And why this is important is not just about the payment itself, but about the commercial opportunity behind the payment.

“CIPS creates a faster, a cost-efficient and efficient alternative. So while we continue to have multi-city flights or connecting flights into multi-city, CIPS comes as the direct flight into China.”

He explained that at the heart of CIPS was a market infrastructure that China has introduced on a global scale to help the clearing and settlement of cross-border payments.

He said that CIPS did both the clearing and settlement and creates efficiency, cost reduction, eliminates complexity, and introduces simplicity, which improves the overall value or benefit for client.

Fatoyinbo said what took the traditional rail between 48 and 72 hours to accomplish, CIPS could get done in 24 hours.

“Overall, it is that we are delivering real value that delivers speed, that makes the process and the experience simpler, but more importantly, delivers tangible value in terms of financial benefits to clients,” he said.

Director, Trade and Exchange Department of Central Bank of Nigeria (CBN), Ms. Aderinola Shonekan, in her goodwill message described the rollout of CIPS as a landmark development.  

Shonekan, who was represented by an Assistant Director, Trade and Exchange, Lagos, CBN, Mrs. Nnenna Ann Ezekannagha, said Nigerian importers and entrepreneurs had faced systemic hurdles, primarily driven by transaction delays, multiple currency conversions, and high settlement volatility associated with over-reliance on third-party intermediary currencies, despite the fact China is one of Nigeria’s largest trading partners, but for years

She said the integration of Stanbic IBTC into China’s CIPS would provide a definitive, cutting-edge solution to these historical bottlenecks.

Shonekan said, “By creating a direct, seamless financial bridge that allows Nigerian businesses to initiate transactions in local currency and settle directly in RMB, Stanbic IBTC is actively changing the landscape of cross-border commerce.