UNILAG AD
  • The Membership Club
  • #EndSARS Dashboard
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Friday, August 12, 2022
Premium Times Nigeria
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Special Reports and Investigations
      • Health Specials
    • Features and Interviews
    • Multimedia
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • #PandoraPapers
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • AUN-PT Data Hub
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Special Reports and Investigations
      • Health Specials
    • Features and Interviews
    • Multimedia
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • #PandoraPapers
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • AUN-PT Data Hub
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
Stephen Onasanya, MD/CEO First Bank of Nigeria

Stephen Onasanya, MD/CEO First Bank of Nigeria

Bank chief advocates open account payment for international trade

byPremium Times
November 27, 2012
Reading Time: 2 mins read
0

An open account transaction form of payment means that goods are shipped and delivered before payment is due, usually in 30 to 90 days.

 

The Group Managing Director, First Bank of Nigeria, FBN, Stephen Onasanya, has advised the Federal Government to consider the use of open account payment for international trade transactions.

Mr. Onasanya made the call in a paper entitled, “Payment System in Nigerian International Trade”, which he delivered at the ongoing 2012 Comptroller-General of Customs conference in Katsina on Tuesday.

He said an open account transaction form of payment means that goods are shipped and delivered before payment is due, usually in 30 to 90 days.

He listed four primary methods of payments for international transactions: Advance Payment, Open Account, Documentary Collection, DC, and Documentary Letters of Credit, LC.

He noted that in spite of the focus on DC and LC over the years, trade financing was shifting away from this “cumbersome method” of conducting business.

“It is now estimated that more than 80 per cent of global trade is conducted on an open account basis,” he said.

Mr. Onasanya said that the open account transaction payment saved time and had been widely adopted by small corporations as they become more comfortable with their buyer and supplier relationships. He described this form of payment as the most advantageous option to the importer in cash flow and cost terms, but the highest risk option.

TEXEM Advert

The bank chief explained that the payment system could be offered in competitive markets with trade finance techniques, such as export working capital financing and export credit insurance. Other trade finance methods are Government Guaranteed Export Working Capital Programme, and Export Factoring.

He, however, observed that these finance methods were not readily available in financial systems in Nigeria for use by exporters.

“Even for importers, import on open account is not guaranteed by the Federal Government in Nigeria,” he said.

Mr. Onasanya also told conference participants that because of the intense competition for export markets, many foreign buyers often press exporters for open account terms.

“In addition, the extension of credit from the seller to the buyer is more common abroad,” he said. “Therefore, exporters who are reluctant to extend credit may face the possibility of the loss of sale to their competitors”.

He advised exporters who choose the open account method of payment to thoroughly examine the political, economic and commercial risks to ensure seamless transaction.

The theme of the weeklong conference is “Borders Divide: Customs Connects”.

It is being attended by freight forwarders, regulatory government agencies in the trade, port and security sector, regional customs administrations, banks, insurers, manufacturers and journalists.

One of the main goals of the conference is to foster better collaboration between the Nigeria Customs and stakeholders to ensure speedy clearance of goods and trade facilitation.

The last conference was held in Sokoto in 2007.

  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • WhatsApp
  • Share on Tumblr
  • Pocket


Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate



TEXT AD: Call Willie - +2348098788999






PT Mag Campaign AD

Previous Post

Ban congratulates President Ernest Bai Koroma on successful elections in Sierra Leone

Next Post

US court dismisses defamation lawsuit against Sahara reporters

Premium Times

Premium Times

More News

Naira Notes

Naira falls at official, parallel markets

August 11, 2022
Millennium tower Abuja [PHOTO: Incide Engineering]

Nigeria seeks $400 million private investment to complete millennium tower

August 11, 2022
President Muhammadu Buhari

Buhari backs down, supports regulator’s rejection of Seplat’s purchase of ExxonMobil asset

August 10, 2022
Nigerian Economic Summit Group (NESG) chairman, Asue Ighodalo [PHOTO CREDIT: TheCable]

Theft, vandalism rob Nigeria of benefits of high crude oil prices – NESG

August 10, 2022
Naira and Dollars

Naira gains at official forex market

August 9, 2022
Nigerian stocks

Nigeria stocks at four-month low, shed N614 billion

August 9, 2022
Leave Comment

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2022 The Premium Times, Nigeria

No Result
View All Result
  • #PandoraPapers
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • COVID-19
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Investigations
    • Investigations
    • Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • #EndSARS Dashboard
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • AUN-PT Data Hub
  • Opinion
  • The Membership Club
  • DONATE
  • About Us
  • Advert Rates
  • PT Hausa
  • Dubawa NG
  • Careers
  • Contact Us
  • Digital Store

All content is Copyrighted © 2022 The Premium Times, Nigeria