Ghana Opens Yuan Payment Route as Nigeria’s China Imports Hit 41%

Ghanaian businesses could soon pay Chinese suppliers directly in yuan from their cedi accounts under a new banking arrangement designed to reduce reliance on the US dollar and cut foreign-exchange conversion costs.

Stanbic Bank Ghana is piloting the arrangement through China’s Cross-Border Interbank Payment System (CIPS), which enables financial institutions to process cross-border payments in Chinese yuan.

Ghana Commercial Bank is also pursuing a similar arrangement, according to Bank of Ghana Governor Johnson Pandit Asiama.

The announcement was made during the Bank of Ghana’s 132nd Monetary Policy Committee press briefing.

Kwamina Asomaning, chief executive of Stanbic Bank Ghana, said CIPS allows businesses to avoid “the need for US correspondent or intermediary banks.”

The arrangement does not replace the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the messaging network banks use to communicate payment instructions across borders.

Stanbic will continue to use existing payment channels for transactions in dollars, euros and pounds.

Instead, the yuan payment route is designed to reduce currency conversions and the number of intermediaries involved in payments between Ghana and China.

The development presents a potential model for Nigeria, where China has become the dominant source of imported goods, accounting for 41.02 per cent of the country’s total imports in the second quarter of 2026.

Pinnacle Daily’s analysis of National Bureau of Statistics (NBS) data showed that Nigeria’s imports from China rose to ₦5.92 trillion in the second quarter of 2026, from ₦4.96 trillion a year earlier.

China’s share of total imports increased from 32.45 per cent to 41.02 per cent over the period.

This means more than ₦4 out of every ₦10 Nigeria spent on imported goods during the quarter went to China, reinforcing the importance of the trade relationship and the potential relevance of a direct local-currency payment arrangement.

Nigeria’s largest import category was machinery and transport equipment, valued at ₦5.46 trillion, or 37.83 per cent of total imports.

China supplies a broad range of manufactured goods, making payment costs and access to finance key considerations for Nigerian importers.

The Ghanaian initiative could therefore provide a reference point for Nigeria as businesses seek more efficient ways to settle trade with their major suppliers.

However, any similar arrangement would depend on agreements between Nigerian and Chinese financial institutions, the availability of yuan liquidity and the applicable regulatory framework.

China trade expands as payment alternatives emerge

Ghana’s move comes amid expanding trade with China, as Bilateral trade between the two countries increased by 19.3 per cent in 2025 compared with the previous year.

Ghana’s exports to China were dominated by commodities, including mineral fuels and oil worth about $933 million and ores valued at approximately $356 million, mainly manganese.

China, in turn, supplies Ghana with manufactured goods such as machinery, electronics, vehicles and textiles.

The growing trade relationship has increased interest in payment arrangements that allow businesses to settle transactions in yuan without first converting local currency into dollars and then into yuan.

Under a direct local-currency-to-yuan arrangement, an eligible Ghanaian importer could initiate a payment from a cedi account, with the transaction processed through participating banks and the CIPS network.

The exact exchange rate, fees and settlement process would depend on the banks involved.

Reducing conversion steps could lower transaction costs and simplify payments.

However, it would not eliminate foreign-exchange risk or guarantee cheaper transactions in every case, as the exchange rate, bank charges and availability of yuan would still affect the final cost.

Other African countries explore yuan payments

Ghana’s initiative follows other moves by African countries to increase the use of China’s currency in trade and financial transactions.

Business Insider Africa highlighted Zambia’s acceptance of yuan for mining tax payments, Kenya’s conversion of dollar-denominated debt into yuan and Ethiopia’s exploration of a similar currency-conversion arrangement.

Kenya is expected to save about $250 million annually from its yuan debt-conversion arrangement, according to the report.

These developments reflect efforts to reduce exposure to dollar-denominated payments and financing, particularly in countries with significant economic ties to China.

The initiatives have also been linked to China’s broader Belt and Road Initiative, which has supported infrastructure investment and economic cooperation across participating countries.

China extended zero-tariff treatment to 53 African countries in May 2026, according to the information provided.

For Nigeria, the potential benefit of a yuan payment route would be closely tied to its import profile.

With China supplying more than two-fifths of imported goods in the second quarter of 2026, a direct payment mechanism could provide an alternative for eligible businesses that regularly purchase machinery, electronics, industrial inputs and other products from Chinese suppliers.

But the scale of Nigeria’s trade with China alone does not guarantee that such an arrangement would produce savings.

Its effectiveness would depend on whether banks can offer competitive conversion rates, whether importers can access yuan when needed and whether the payment system can process transactions reliably.

The central question for Nigerian businesses is whether a direct cedi-to-yuan arrangement could reduce the cost and complexity of paying Chinese suppliers while preserving access to other currencies for trade with the rest of the world.

Ghana’s pilot offers a model to examine as China’s share of Nigeria’s imports continues to rise.