Nigerian importers and exporters rely on trade finance to manage payment and performance risk with foreign counterparties. Transactions involve banking instruments governed by international rules, Nigerian foreign exchange regulations administered by the Central Bank of Nigeria, and customs and export requirements.
Instruments and transactions
- Documentary letters of credit, commonly subject to the ICC's Uniform Customs and Practice for Documentary Credits
- Standby letters of credit and demand guarantees
- Documentary collections
- Import and export financing facilities
- Pre-export and prepayment financing
- Commodity and structured trade finance
- Supply chain and receivables finance
- Warehouse receipt financing
Regulatory requirements
- Imports: importers must process a Form M through an authorised bank before importation for foreign exchange and customs purposes
- Exports: exporters must register export transactions and repatriate export proceeds within the periods required by CBN rules
- Foreign exchange: access to foreign exchange and documentation through the official market
- Product certification: many imports require SON certification or NAFDAC registration
How we assist
- Structuring and documenting trade finance facilities
- Reviewing letters of credit, guarantees and their terms
- Advising on compliance with CBN foreign exchange rules for imports and exports
- Security over goods, receivables and warehouse stocks
- Disputes over documentary discrepancies, refusals to pay and fraud
- Calls on guarantees and bonds, including urgent injunctions in appropriate cases
Related services
Trade finance often sits alongside loan and facility agreements and commercial contracts for supply and distribution.
