For Nigeria, when an exporter has concluded a commercial export contract with a Nigerian importer and the two parties do not know each other, the irrevocable and confirmed letter of credit is the most appropriate instrument to mitigate the risks.
The Nigerian importer will ask the Nigerian bank to issue a letter of credit for the benefit of the exporter who will have previously named the name of the notifying and confirming bank to be accepted by the exporter.
For Nigeria, the exporter must choose a confirming bank that has in its network of correspondents the Nigerian bank that is proposed by the importer but also the one that has an acceptable credit rating so that there is no default of payment from the confirming bank.
A letter of credit issued in Nigeria is usually confirmed by a big number of banks which are prepared to take the risks of Nigerian banks and make sure the beneficiary of the LC or exporter obtain his payment.
LIST OF NIGERIAN BANKS ISSUING LETTERS OF CREDIT AND WHICH ARE ACCEPTED BY THE BANKS OF EXPORTERS
Access Bank Plc
Diamond Bank Plc
Fidelity Bank Plc
First City Monument Bank Plc
Union Bank of Nigeria Plc
Ecobank Nigeria Plc
Zenith Bank Plc
CONFIRMING BANKS FOR LETTER OF CREDIT ISSUED THROUGH NIGERIAN BANKS
Banks which are confirm the letters of credit issued in Nigeria by Nigerian banks are: (please contact us to obtain the list or to be listed as confirming bank).
NIGERIA: CONFIRMATION FEE FOR LETTER OF CREDIT FROM A NIGERIAN BANK
Confirmation charges and fees for letters of credit issued through Nigerian banks can be obtained on demand by emailing: firstname.lastname@example.org.
TRADEFINANCE.AFRICA COUNTRIES OF EXPERTISE