Nigeria's acting president has called on parliament to press ahead with legislation to improve the country's reputation in the global financial community.

Referring specifically to the low regard in which Nigerian letters of credit (L/Cs) are held, Acting President Goodluck Jonathan is concerned that the country is on the brink of being blacklisted again by the international Financial Action Task Force (FATF).

Pledges

At its last meeting with the FATF in Bahrain in February this year, Nigeria pledged to pass two pieces of financial legislation - the anti-corruption bill and the anti-terrorism bill - by 30 June 2010.

An earlier promise by President Umaru Yar'Adua - who is currently unable to act as Nigeria's leader due to illness - committed Nigeria to passing the new legislation by the end of 2009.

L/C concerns

Jonathan has now written the Senate and the House of Representatives, expressly outlining his concern that the two bills should be passed into law by the deadline and specifically highlighting the issue of Nigerian L/Cs.

"It will frustrate and hamper legitimate international financial transactions flowing from Nigeria. Some countries will not honour international financial instruments emanating from Nigeria, including L/Cs," he wrote.

Economic consequences

The acting president fears that if Nigeria's lawmakers miss the June deadline, then Nigeria could be blacklisted again by the FATF and face severe economic consequences.

"Nigeria's international image will be highly dented as a country without the political will to cooperate in the global war on terror," Jonathan wrote.

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