Economy
Redefining Trade Relations Between Nigeria and China
By Stanbic IBTC Bank
Stanbic IBTC Holdings, a member of Standard Bank Group, has continued to serve as a connecting link in facilitating trade transactions between Nigerian and Chinese importers, thereby fostering international trade.
As part of its efforts to boost trade relations between the two nations, Stanbic IBTC Holdings, through its banking subsidiary, has developed several solutions for boosting favourable business deals and trade relationships between Nigerian business owners and their Chinese counterparts.
In August 2022, the organisation held its 2022 Africa-China Trade Expo to promote trade relations and boost economic prosperity in the two regions.
The expo themed Synergy for Growth featured a masterclass and an Africa-China Trade Solutions (ACTS) presentation. One of the initiatives through which Stanbic IBTC Bank has been redefining trade relations between Nigeria and China is the ACTS propositions, aimed at allowing African enterprises to explore new markets, expand their customer base and create a mutually beneficial relationship between the two countries.
Ade Otukomaya, Head, Africa China Banking, Stanbic IBTC Bank, said that the financial institution was always exploring opportunities to add value to its clients’ businesses.
He said: “The Nigerian agricultural sector is replete with diverse opportunities. Being able to effectively harness these opportunities will drive agricultural development and expand agricultural export. Overall, agriculture experts are of the view that the country has the potential to generate substantial FX inflows for the country, thereby reducing trade deficits.”
As part of the ACTS offerings, the Standard Bank China Trade Desk sources for capable Nigeria exporters of produce and finished products in demand by the Chinese public. The Trade desk receives demands from Chinese entities who want to order large quantities of agro-allied products from Nigeria. The desk also matchmakes buyers and suppliers under favourable prices, conditions and general terms in line with approved protocols between the two countries.
With the increasing demand for Nigerian goods on store shelves in China for the Chinese public to consume, Stanbic IBTC has developed a partnership with Pacific International Lines, a logistics service provider that will transport goods sourced from Nigerian exporters for export to China.
“Stanbic IBTC is harnessing these opportunities that Nigeria possesses by providing a platform for Nigerian and Chinese businesses to flourish. We have established market leadership in several financial services segments, our goal is to continually leverage our connections, knowledge, and experience in delivering impeccable service and value that makes our customers not just get ahead but emerge leaders in their respective business segments,” Ade added.
Despite the growth in trade, most Nigerian importers still face a myriad of challenges that limit their ability to order goods and services from a handful of trusted Chinese suppliers. In addition to that, language and cultural barriers also pose a challenge for African importers and Exporters when travelling and negotiating supplier agreements in China.
Through ACTS Solutions, Stanbic IBTC, via its parent company, Standard Bank of South Africa, has leveraged its partnership with the Industrial and Commercial Bank of China (ICBC) to connect African importers, especially in Nigeria, with a dedicated trade agent in China as well as enable them to tap into the vast opportunities that China presents as a trading partner.
Apart from eliminating language barriers, ACTS aims to assist Nigerian importers source and validating quality goods, safely and efficiently from the most competitive and verified suppliers in China.
The Agent Zhejiang International Trading Supply Chain Company Limited, otherwise known as Guomao, ensures that Nigerian importers get the best deals in areas such as sourcing the right suppliers for their businesses, negotiating the best prices and trade conditions on behalf of the clients, providing translators to facilitate trade negotiations and discussions, validate and ensure the quality of goods from the suppliers meet the agreed and required standards by clients, handle the shipping logistics and delivery to destination, depending on clients’ preference, amongst others.
Through this solution, Stanbic IBTC remains committed to connecting Nigerian and Chinese businesses, which will boost the volume of trade between both countries.
By Adedapo Adesanya
The Senate has passed a bill to repeal and re-enact the law establishing the National Insurance Commission (NAICOM), paving the way for the regulatory agency to be renamed the Insurance Regulatory Commission (IRC).
The legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed after the Senate considered and adopted the report of its committee on banking, insurance and other financial institutions.
The Chairman of the committee, Mr Adetokunbo Abiru, the senator representing Lagos East, who presented the report, stated that the proposed legislation was necessary because the existing National Insurance Commission Act of 1997 had become outdated and no longer reflected the realities of Nigeria’s evolving insurance industry or global regulatory standards.
According to the Senate, the decision to change the Commission’s name was informed by the need to eliminate confusion associated with the existing designation and to better reflect the institution’s regulatory mandate within Nigeria’s insurance industry.
The bill also provides legal protection for the commission and its officers against adverse claims arising from the lawful execution of their statutory duties.
However, he noted that the commission’s enabling law had become obsolete, exposing significant regulatory gaps that required urgent legislative intervention.
‘The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” the lawmaker said.
He explained that the new legislation seeks to strengthen the independence of the commission by empowering it to make regulatory decisions without undue influence in the country’s insurance sector.
According to him, the bill also enhances the commission’s authority to exchange information and collaborate with domestic and international regulatory bodies, issue regulations, guidelines, standards and directives on insurance-related matters, and intervene more effectively in financially distressed insurance companies to protect policyholders and preserve financial stability.
This marks yet another move to strengthen the country’s insurance sector following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) of 2025 and the industry-wide recapitalisation exercise, which will wrap up by July 31.
By Adedapo Adesanya
About 143 companies that successfully passed the technical and prequalification stages of the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) 2025 Licensing Round will, today, compete for 50 oil and gas blocks at the commercial bid conference in Abuja, the final stage in the allocation process for the assets.
The commission said only the prequalified companies have been invited to attend the event, which will hold at the Conference Centre of the Transcorp Hilton Hotel, Abuja, stressing that participation is strictly by invitation.
The commercial bid conference will determine the successful bidders for oil and gas assets located across Nigeria’s producing and frontier basins.
The 50 blocks comprise 16 onshore blocks and 18 shallow water blocks in the Niger Delta, one deep offshore block, three onshore blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin, and four in the Benue Trough.
According to the commission, the winning bids will be determined through a transparent evaluation process based on clearly defined commercial parameters. These include the signature bonus offered by bidders, the proposed work programme commitment and the level of performance security provided. The final selection will be based on a weighted technical and commercial score.
The licensing round is being conducted under the provisions of the Petroleum Industry Act (PIA) 2021, which requires a transparent and competitive process for the award of petroleum assets.
NUPRC had announced the commencement of the 2025 Licensing Round on November 11, 2025, before opening the online bid portal on December 1, 2025, to enable interested companies to register and participate in the exercise.
To ensure prospective investors fully understood the requirements, the commission organised a pre-bid conference on January 14, 2026, at Eko Hotels and Suites, Lagos. The event provided detailed explanations on the licensing guidelines and bidding procedures to registered participants and other stakeholders.
Registration and submission of prequalification documents closed on February 27, 2026, while the prequalification evaluation was completed on March 16, 2026.
NUPRC disclosed that 286 companies initially submitted applications for prequalification.
Following the evaluation process, 196 companies were cleared to participate in the technical and commercial bid stages.
The prequalified 143 companies eventually submitted a total of 200 bids for the available oil and gas blocks. These companies are now set to compete at the commercial bid conference, where the financial offers will be opened and evaluated to determine the eventual winners.
The licensing round is expected to attract fresh investment into Nigeria’s upstream petroleum sector, boost exploration activities across both producing and frontier basins, increase crude oil and gas reserves, and support the country’s drive to grow production and government revenue.
It also underscores the regulator’s commitment to implementing a transparent, competitive and investor-friendly licensing regime under the Petroleum Industry Act.
By Adedapo Adesanya
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained all key monetary policy parameters following the conclusion of its two-day meeting on July 21, 2026, on Tuesday, maintaining its tight monetary policy stance to curb inflation and support macroeconomic stability.
According to the Governor of the apex bank, Mr Yemi Cardoso, who chaired the committee, the Monetary Policy Rate (MPR), which serves as the benchmark interest rate, remains at 26.50 per cent. The MPC also retained the asymmetric corridor around the MPR at +50 basis points and -450 basis points.
In addition, the Cash Reserve Ratio (CRR) for commercial banks was left unchanged at 45.00 per cent, while the CRR for merchant banks remains at 16.00 per cent. The committee also retained the CRR on non-Treasury Single Account (Non-TSA) public sector deposits at 75.00 per cent, with the liquidity ratio at 30.00 per cent.
The decision reflects the apex bank’s continued commitment to containing inflationary pressures through a restrictive monetary policy while safeguarding the resilience of Nigeria’s financial system amid ongoing macroeconomic adjustments.
By keeping all policy tools unchanged, the MPC signalled its intention to continue managing excess liquidity in the banking sector and maintain stability in financial markets.
The move is also expected to provide greater policy certainty for investors and businesses monitoring the country’s monetary policy direction.
The latest decision also means borrowing costs are likely to remain elevated in the near term as the central bank continues to prioritise price stability over monetary easing.
Analysts had expected the CBN committee to retain the rate after Nigeria’s headline inflation came in at 15.91 per cent as of June 2026, marking a slight decline from 15.93 per cent in May.
However, even as overall price growth has moderated significantly compared to previous periods, food inflation remains a persistent challenge, accelerating to 17.52 per cent in June.
