International trade can present risks and uncertainties about timing and modes of payments between buyer and seller. Find some important general information and tips on how to deal with Nigerian exporters financially below.
Tips for buyers
- Ensure you have all documentation of financial transactions
- Ensure the terms of payments are clearly defined in the export contract
Some of the world’s currencies are accepted for most international transactions in Nigeria. The most popular are US Dollar, Euro and Yen. The US Dollar is most widely accepted by Nigerian sellers. Always keep an eye on current exchange rates in international transactions as well. Want to know more? Check out a list of current exchange rates between international currencies and the Nigerian Naira.
There are different methods of payment possible between you and Nigerian sellers. The main options include:
- Documentary credit (e.g. Letter of Credit)
- Open account (e.g. advanced payment, cash against document, deferred payment)
- Documentary collections (e.g. bills of collections)
It is advised to always check and discuss your options for payment with a financial adviser and the seller. This ensures you to have the right agreements on payment in your eventual export contract.
Want to know more about finance in Nigeria? Contact us and find out how we can help!