Nigeria's Union Bank has launched what it calls a local letter of credit (L/C) at a trade finance conference for its corporate customers in Lagos.

A senior Central Bank of Nigeria (CBN) official said he welcomed this new product, saying customers using it would benefit from cost savings.

Nigerian first

The new offering is essentially a domestic L/C, but according to Union Bank this is the first time that such an offering has been made available in the Nigerian banking sector.

The bank is offering additional benefits alongside its local L/C, including preferential conditions such as extended credit.

Central bank endorsement

Deputy director of trade and exchange at the CBN, Ozeomena Nnaji, who also attended the trade finance conference said he welcomed the new product.

He suggested the introduction of the local L/C will help Union Bank customers save costs, improve business stability and promote business growth.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.