Nigerias foreign tradepayments through Letter of Credit LC fell by 146.5 percent year-on-year YoY to 434.05 million in the first nine months of 2024 9M24 from 1.07 billion in the corresponding period of 2023.
The Central Bank of Nigeria, CBN, disclosed this in its International Payments Data for the review period.
An LC is a mode of payment used for the importation of visible goods, where bank guarantees are used instead of cash before shipment.
It is a written undertaking given by a bank issuing bank at the request of its customer in which the bank promises in writing to pay the exporter a certain sum within a certain time frame in return for goods, as long as the customer provides the bank with the proper paperwork.
