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LequteMan
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The Central Bank of Nigeria, CBN, henceforth will deny access to the official forex window to any bank that deliberately refuses to issue Letters of Credit (LCs) to manufacturers, Today.ng reports.
A letter of credit is a document issued by a bank to another bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
CBN governor, Godwin Emefiele, is reportedly displeased over the rate at which lenders were refusing to open LCs for their customers, particularly manufacturers.
However, some bankers said the acute forex scarcity in the system had forced them to stop opening LCs.
A letter of credit is a document issued by a bank to another bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
CBN governor, Godwin Emefiele, is reportedly displeased over the rate at which lenders were refusing to open LCs for their customers, particularly manufacturers.
However, some bankers said the acute forex scarcity in the system had forced them to stop opening LCs.
