Foreign correspondent banks have waived their requirement for collateral on letters of credit (L/Cs) issued on behalf of Nigerian importers according to local media.

The Vanguard Daily quotes banking industry sources as saying that in addition to the waiver, fees and charges by correspondent banks for are range of financial services to Nigerian banks have been slashed significantly.

Improved international perceptions of Nigerian risk have resulted in L/C confirmation charges reducing from 1.5 per cent per quarter to 1.0 per cent per quarter according to the Lagos daily. The newspaper also quotes Mr. Philip Oduoza, executive director of Diamond Bank Limited, as saying that under new arrangements, Nigerian banks are no longer required to make any advance deposit for L/Cs to be opened.

The views expressed in this article are those of the author and not necessarily those of ICC or of the other partners in DC-PRO.