WorldStage Newsonline– Banks in Nigeria are currently gripped by fear and confusion over the new global order of international trade that encourages an open account method of transaction, where goods are shipped and delivered before payment is due, which is typically in 30, 60 or 90 days.
The banks’ representatives at the May 2018 edition of the banking technique and practice meeting of the International Chamber of Commerce (ICC) Nigeria over the weekend expressed their common fear in the current gap between the Central Bank of Nigeria and the Nigeria Customs where they have to relate with the documentation presented by exporters and importers, while Customs relates with the goods involved.
With this, the banks said they were incapacitated to some extent.
At the meeting which attracted experts on the trade desks of different banks in Nigeria and the CBN, Mr. Dimitiri Dike, Chief Risk Officer for Heritage Bank who spoke the mind of the bankers said the new policy was advantageous to the importer in terms of cash flow and cost, but was consequently a risky option for an exporter.
He stated that the current dynamics in the trade and commerce nationally and internationally deserved urgent attention, saying, policy summersault and the need for reviews of operation systems had posed a lot of challenges that must be looked into for appropriate solutions.
Chief Raymond Ihyembe, Chairman, ICC Nigeria Banking Commission also warned that steps must be taken to tackle the possible effects of the current policy.
He said this became imperative in view of the fact that Nigeria’s economy depends solely on crude oil.
According to him, any massive drop in the price of crude oil in the global market usually affects the aggregate economy greatly.
He said in such instances trade and commerce, “which is supposed to be the safety net for the nation is again facing turbulence as a result of policy change.”
To address the deficiency, Ihyembe suggested inauguration of a special committee that will review the status quo and then come up with the treat, risks and opportunities of the current policy.
The suggestion was unanimously agreed to and the special committee comprising five banks was given three weeks to submit its recommendations on how to mitigate the risk of open account policy in the international trade.
Nigerian banks were said to have been missing at the recent ICC Banking Commission meeting held in Miami, USA where they would have made input to the new policy.
Dr. Omolara Akanji, Vice Chairman, ICC Nigeria, Banking Commission observed that the presence of the banks at such occasions would have helped to re-shape their orientation about the kind of reviews and adjustments their current structures require.
