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How to Pay Chinese Suppliers from Nigeria – Complete Guide for Businesses

2025-05-16 13:38

Introduction: Market Environment for Payments from Nigeria to China

China is Nigeria’s largest trading partner, with billions of dollars' worth of goods imported each year - from electronics and machinery to textiles and packaging materials. For Nigerian importers, working with Chinese suppliers has become a vital part of staying competitive in today’s global market. But while sourcing products from China may be easy, making secure and cost-effective payments to suppliers in China can be a major hurdle for many Nigerian businesses.
Whether you’re a large import/export company or an SME trying to scale, finding the right payment method is critical. You need to balance speed, cost, security, and compliance with both Central Bank of Nigeria (CBN) regulations and international standards. Choosing the wrong payment channel could lead to delays, fraud, or even total loss of funds.
In this practical guide, we’ll walk you through the most reliable ways to pay Chinese suppliers from Nigeria, including traditional bank transfers, letters of credit, third-party platforms, and more. You’ll also learn about essential documents, how to stay compliant with Nigerian trade laws, and tips to avoid common pitfalls when sending money abroad.
Whether you’re just starting out or refining your global payment systems, this guide is packed with actionable insights tailored to Nigerian businesses engaged in China trade.

Why Kanzum is the Best Solution for Nigerian Businesses

Kanzum is revolutionizing cross-border B2B payments by providing a Fast, Secure, and Cost-Effective platform specifically designed for businesses in emerging markets like Nigeria.
  • Kanzum offers near-instant processing for payments to Chinese suppliers, ensuring your transactions are completed without unnecessary delays. Say goodbye to waiting days for SWIFT transfers to clear.
  • Kanzum is built with enterprise-grade security and compliance at its core. With robust KYC/AML procedures and encrypted infrastructure, your transactions are protected end-to-end.
  • Kanzum eliminates the excessive fees and unfavorable exchange rates that often come with traditional banking and middlemen. Enjoy transparent pricing and better margins on your imports.
  • You can seamlessly convert Naira to Chinese Yuan (CNY) at competitive rates, making it easier to negotiate and settle invoices in your supplier’s preferred currency.

Why Choosing the Right Payment Method from Nigeria to China Matters

In international trade, especially between Nigeria and China, how you pay your supplier can make or break your business transaction. Many Nigerian importers have faced avoidable losses simply because they used unreliable or unverified payment methods. That’s why it’s not just about sending money—it’s about choosing the right way to do it.

1. Risk of Fraud and Scams

One of the most common risks Nigerian businesses face is falling victim to fraud. Fake suppliers, hacked email communications, or shady intermediaries can trick you into sending money to the wrong account. Once funds are transferred internationally, they’re extremely difficult to recover.
Tip: Always confirm account details through a secondary channel (like a phone call or verified platform) before sending payment.

2. Payment Delays

International transfers from Nigeria can sometimes take longer than expected, especially if the bank’s correspondent partners in China are not streamlined. Delays can lead to shipping hold-ups, damaged supplier relationships, or loss of favorable pricing.
Some payment channels take 3–7 business days to settle, while others may take even longer if there's a public holiday in either country.

3. Currency Exchange and Volatility

Paying in USD, RMB (Yuan), or Naira? Currency conversion is another challenge. Naira’s volatility can affect how much you end up paying if the rate fluctuates before the transaction clears. Also, some suppliers prefer to be paid in USD or RMB, which means you need to work with a channel that offers competitive exchange rates and low conversion fees.

4. Compliance with CBN Regulations

The Central Bank of Nigeria (CBN) closely monitors international payments. If you don’t follow the correct process (e.g., obtain a valid Form M, NXP form, or provide a proforma invoice), your payment may be delayed—or worse, rejected.
Banks may also require documentation to verify the source of funds, especially for large transfers. Ensuring you're compliant helps you avoid regulatory red flags, audit problems, or unnecessary scrutiny.

5. Aligning with Your Supplier’s Preferences

Your Chinese supplier might prefer one payment method over another—like T/T (telegraphic transfer) or Letter of Credit—depending on their own risk appetite. Insisting on a method they’re not comfortable with can create mistrust or negotiation friction.
Pro tip: Discuss payment terms early during negotiation. Some suppliers are more flexible if you're a repeat buyer or if you’re placing large orders.
Choosing the right payment method isn’t just about convenience—it’s about protecting your money, meeting legal requirements, building trust with your suppliers, and keeping your import business running smoothly.

Top 5 Reliable Payment Methods from Nigeria to China

When paying Chinese suppliers from Nigeria, using a secure and efficient payment method is critical. Below are the top 5 tried-and-tested methods that Nigerian businesses—especially import/export companies—can rely on. Each comes with its own strengths, risks, and ideal use cases.

1. Telegraphic Transfer (T/T) via Nigerian Banks

Overview:
Telegraphic Transfer (also known as wire transfer or SWIFT transfer) is the most commonly used payment method for Nigerian importers dealing with Chinese suppliers. It’s a direct bank-to-bank transfer in foreign currency, typically USD.
How to Initiate:
  • Request a Proforma Invoice from your supplier.
  • Open a Form M via your Nigerian commercial bank.
  • Provide relevant shipping documents.
  • The bank remits payment via SWIFT to the supplier’s bank in China.
Banks That Support It:
GTBank, Zenith Bank, Access Bank, First Bank, UBA, and several others.
Pros:
  • Widely accepted by Chinese suppliers
  • Easy to track with SWIFT codes
  • Can be done online or in-branch
Cons:
  • Processing time: 2–5 business days
  • Risk of payment delays due to compliance checks
  • Subject to currency fluctuations and high fees
Best For:
Small to medium-sized transactions, regular suppliers, or when pre-shipment inspection and documentation are ready.

2. Letter of Credit (LC)

Overview:
A Letter of Credit is a secure payment instrument issued by your bank guaranteeing that your supplier will be paid once certain conditions are met. It’s ideal for large or high-risk transactions.
How to Open One in Nigeria:
  • Approach your bank with the supplier’s contract and proforma invoice
  • Bank issues LC on your behalf to supplier’s bank
  • Supplier ships goods and provides documents (Bill of Lading, etc.)
  • Bank verifies compliance and releases funds
Pros:
  • Offers a high level of security to both parties
  • Minimizes risk of non-delivery
  • Builds credibility with new or high-value suppliers
Cons:
  • More expensive than other methods (bank charges + confirmation fees)
  • Complex and paperwork-intensive
  • Processing time: 7–21 days
Best For:
Large volume or high-value imports, new suppliers, and first-time transactions with Chinese manufacturers.

3. Third-party Payment Platforms

Overview:
Platforms like Kanzum, Payoneer, Western Union Business, and MoneyGram allow Nigerian businesses to send payments directly to China - often at lower rates and faster speed than traditional banks.
How to Use:
  • Sign up on the platform
  • Link your Nigerian bank account or Naira card
  • Convert funds and send directly to supplier’s account
Pros:
  • Lower fees and better exchange rates
  • Fast delivery—often same day or within 48 hours
  • User-friendly dashboards and mobile apps
Cons:
  • Some platforms may have funding limits or require USD accounts
  • Not all Chinese suppliers accept this method
  • Risk of platform restrictions or delays
Best For:
Small to mid-sized transactions, flexible suppliers, and recurring payments for regular shipments.

4. Chinese Agents or Local Procurement Companies

Overview:
You pay a trusted Nigerian or China-based agent, who then pays the supplier on your behalf. This is useful when navigating complex payments or when the supplier only accepts domestic (China-based) payments.
How It Works:
  • You agree on terms and currency with your local agent
  • You pay in Naira, USD, or USDT
  • The agent pays the supplier in RMB via Chinese domestic platforms like Alipay or WeChat Pay
Pros:
  • Saves time and reduces compliance hassle
  • Supplier gets local currency (RMB) faster
  • Good for small MOQ (minimum order quantity) deals
Cons:
  • Trust and transparency are key—risk of being scammed
  • May not work for large transactions requiring official documentation
  • Less traceable in disputes
Best For:
Low-value orders, product sourcing, sample purchases, and when you're dealing with non-English-speaking suppliers or informal arrangements.

5. Crypto/USDT Payments (If applicable under 2025 regulations)

Overview:
Some suppliers now accept USDT (Tether) or other stablecoins for faster, borderless payments. While this is growing in popularity, it remains controversial and must be approached cautiously, especially given Nigeria’s evolving crypto regulations.
How It Works:
  • You and your supplier agree on a USDT amount
  • You send USDT via a wallet (e.g., Binance, Trust Wallet)
  • Supplier receives instantly and confirms
Pros:
  • Instant settlement (no banks involved)
  • Low transaction fees
  • Useful in countries with strict FX controls
Cons:
  • Regulatory risk: crypto is still tightly monitored in Nigeria
  • Irreversible transactions—no refunds
  • Supplier must trust you fully or use escrow
Best For:
Tech-savvy importers, suppliers open to crypto, or urgent small payments where conventional channels aren’t feasible.

Key Documents and Compliance Requirements for Payments from Nigeria to China

When making international payments from Nigeria to China, especially for commercial imports, staying compliant with the Central Bank of Nigeria (CBN) and customs requirements is non-negotiable. Missing even one document could delay your transaction or attract heavy penalties.
Here’s a breakdown of the key documents and regulations every Nigerian importer must understand before sending payments to Chinese suppliers.

1. Form M – The Gateway to Importation

What it is:
Form M is a mandatory declaration document introduced by the CBN and managed through the Nigeria Single Window Trade Portal (NSWTP). It’s required for all imports into Nigeria and must be opened before placing your order or making payment.
Why it matters:
Without Form M, your bank will not process a telegraphic transfer (T/T), and your goods may be denied clearance at Nigerian ports.
How to obtain it:
  • Register on the Trade Portal
  • Submit a valid Proforma Invoice from your Chinese supplier
  • Provide additional documentation like RAR (Risk Assessment Report), insurance, and ID
  • Submit through your bank, which forwards it to Customs for approval
Pro Tip: Always open Form M before initiating payment or shipping—doing it in reverse may trigger regulatory issues.

2. Proforma Invoice – Your First Official Document

What it is:
A Proforma Invoice is a preliminary bill of sale sent by your supplier that outlines the goods, quantity, price, and payment terms.
Why it matters:
  • It’s a prerequisite for opening Form M
  • It defines the terms of the transaction and protects both parties
  • It is often required by Nigerian banks before releasing funds for international transfer
Ensure that your supplier’s full name, bank details, and signature are clearly listed on the invoice.

3. NXP Form – For Exporters Only

What it is:
The Nigeria Export Proceeds (NXP) Form is the equivalent of Form M, but used for export transactions. If your business involves exporting goods from Nigeria (e.g., agro-products, solid minerals), you must open an NXP Form.
Why it matters:
  • Tracks the repatriation of export proceeds
  • Required for clearance at ports and for processing export incentives or documentation
How to open:
  • Submit via your authorized dealer bank
  • Include commercial invoice, packing list, and shipping documents
While this form doesn’t apply to importers, it’s essential for Nigerian companies doing both import and export.

4. CBN Regulations on International Remittances

Key Points to Know:
  • Authorized Dealer Banks (ADBs) must process all foreign currency transfers. You can’t send USD or RMB directly from a domiciliary account without documentation.
  • Payments above certain thresholds may require additional vetting, including source of funds verification.
  • Importers are not allowed to pay suppliers before obtaining valid Form M and Pre-Arrival Assessment Report (PAAR).
  • Cryptocurrency transfers for trade are not officially endorsed by the CBN (as of recent guidelines). Businesses should proceed with caution and always verify the latest updates from CBN or NDIC.
Keeping your documentation in order not only helps you stay on the right side of Nigerian law but also gives your supplier confidence in your professionalism. It’s one of the best ways to build trust and secure long-term supply relationships with Chinese partners.

Tips to Avoid Scams and Payment Fraud

In the Nigeria-China trade space, one of the biggest threats to importers is payment fraud and supplier scams. Whether you're new to sourcing or have years of experience, falling into the wrong hands can result in lost money, undelivered goods, or irreparable reputational damage.
Here are practical steps Nigerian importers should take to avoid scams when paying Chinese suppliers.

1. Verify Supplier Legitimacy Before Any Payment

Never assume a supplier is genuine just because they have a website or Alibaba profile. Many scammers use cloned sites or fake documents to trick buyers into making upfront payments.
What to do:
  • Request official documents: Ask for a business license, export license, and company registration number.
  • Cross-check on Chinese government portals like Qichacha.com or 1688.com (if dealing with factories).
  • Use Alibaba's supplier verification levels: Gold Supplier, Assessed Supplier, etc.
  • Search for third-party reviews or complaints on sourcing forums and platforms.
Red flag: If the supplier is pushing for payment to a personal bank account or refuses to provide documentation - walk away.

2. Request Third-Party Inspections or Audits

Before sending large payments, especially for your first order, it's wise to use a third-party inspection service to verify the supplier and the goods.
What to do:
  • Hire independent quality control companies like SGS, Bureau Veritas, or QIMA
  • Ask the agent to physically visit the factory, verify products, and confirm readiness for shipment
  • Some agents also offer video verification or real-time factory walk-throughs
A small fee upfront can save you from losing millions to a fake or underperforming supplier.

3. Use Trade Assurance on Platforms Like Alibaba

If you're sourcing from Alibaba, always prioritize suppliers that offer Trade Assurance. It’s a free service that protects your order by holding funds in escrow until the supplier meets delivery and quality terms.
Why it's safer:
  • Funds are only released once you've confirmed receipt and inspection of goods
  • Dispute resolution is managed by Alibaba if things go wrong
  • Payment is made via Alibaba’s secure channel—not directly to the supplier
How to activate it:
  • Select suppliers with the “Trade Assurance” badge
  • Communicate and place orders strictly within the Alibaba platform
  • Avoid switching to external payment channels like WeChat or email-based deals
Pro tip: Don’t agree to “off-platform discounts” in exchange for paying directly—this voids your protection.

Additional Quick Tips:

  • Use escrow or milestone payments for large transactions (e.g., 30% deposit, 70% after inspection)
  • Always confirm bank account details directly via a verified contact or video call
  • Avoid high-pressure tactics (e.g., “pay today or price goes up!”)—a major scam indicator
  • Maintain a record of all communication, invoices, and agreements

Conclusion: Key Takeaways on How to Pay from Nigeria to China

Paying Chinese suppliers from Nigeria doesn’t have to be complicated—but it does require planning, due diligence, and smart execution. Whether you're a growing import/export business or a seasoned enterprise, choosing the right payment method can save you money, reduce risk, and build long-term supplier relationships. Kanzum makes paying Chinese suppliers from Nigeria seamless, affordable, and worry-free, allowing you to focus on growing your business.
Let’s quickly recap the best practices covered in this guide:
  • For high-value orders, consider a Letter of Credit (LC) to ensure both you and your supplier are protected.
  • Explore third-party platforms for speed and flexibility - just be sure they’re compliant and trustworthy like Kanzum.
  • For small orders or flexible negotiations, working with local agents or procurement companies can save time (but vet them thoroughly).
  • Consider crypto payments only where legally and securely applicable—ideally as a last resort for urgent or small-value deals.
  • Always stay CBN-compliant to avoid regulatory issues or blocked transfers.
  • Protect yourself from fraud by verifying your supplier, using trade assurance, and keeping detailed records.
The most successful Nigerian importers know that there's no one-size-fits-all approach. Your payment method should depend on:
  • The size and value of your order
  • The trust level and relationship with your supplier
  • Your company’s cash flow and compliance capabilities
By mixing the right tools, platforms, and strategies, you can optimize your international trade operations while minimizing risk.