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Credit for Importation of Goods Dropped by 62% in Q1 2024 – CBN,

May 27, 2024
in Business
Credit for Importation of Goods Dropped by 62% in Q1 2024 – CBN,
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Credit for Importation of Goods Dropped by 62% in Q1 2024 – CBN

Nigeria recorded $204.47 million as letters of credit payments in the first quarter (Q1) of 2024.

According to the international payments data obtained from the Central Bank of Nigeria (CBN) on Sunday, the figure recorded in Q1 represents a decrease of $344.75 million or 62.7 percent compared to the $549.22 million reported in the same quarter in 2023.

A letter of credit is a written undertaking given by a bank at the request of its customer (applicant) for the importation of visible goods.

Such transaction obligates the bank itself to pay the exporter (seller/beneficiary) up to a stated amount within a prescribed time frame upon presentation of stipulated documents that conform to the terms and conditions of the documentary credit.

The data showed letters of credit payment stood at $58.33 million in January, compared to $107.78 million in the same month last year.

In February, the value was $102.6 million relative to $171.95 million in the corresponding period of the previous year.

According to CBN, the figure fell to $43.54 million in March, compared to the $269.49 million reported in March 2023.

The data showed a significant decrease in Nigeria’s international trade and financial transactions.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : EconomicConfidential – https://economicconfidential.com/2024/05/credit-importation-goods/?utm_source=rss&utm_medium=rss&utm_campaign=credit-importation-goods

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