Foreign correspondent banks are insisting on knowing the identities of Nigerian importers before writing letter of credit (L/C) business with local counterparts, according to media reports.

They suggest that the trend may result in Nigerian importers facing higher costs and slower transaction times, while Nigeria's banks may have to come up with new methods of financing for their customers.

Know your customer

Reports that foreign correspondent banks are insisting on knowing an importer's identity emerged in the Nigerian financial daily, Business Day.

It does not name which foreign correspondent banks are insisting on information on Nigerian buyers before entering into L/C transactions.

More assurances

According to other reports, foreign banks are increasingly seeking more assurances before writing any kind of business with Nigeria.

Some are reportedly insisting that the full identities of beneficiaries must be disclosed and lines of communications must be opened between the foreign bank and the Nigerian beneficiary.

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