Treasury & FX in Nigeria

Report date: 
7 May 2019
  • Bureaucracy – continues to be a problem & cash repatriation is particularly complex.
  • Hedging is expensive
  • Although the FX market has improved recently- it is still hard to get the allocation you need.
  • Many companies are using a number of local banks (mostly for collections) and a couple of international banks
  • It is possible to sweep from local bank accounts into main header accounts – but the system isn’t always reliable
  • E Bills (Official name is Ebillspay, it leverages the NIBSS Instant Payment (NIP) platform) & NIBBS (Nigeria Interbank Settlement System, actually the Fund sweeping Service provided by NIBSS) are an option, but still has implementation glitches and it doesn’t work for all banks
  • The requirement to provide biometric data for the opening of bank accounts – in person – at Nigerian embassies is highly problematic for some companies
Contributors: 

This report is based on a Treasury Peer Call chaired by Arnaud Francq

Countries v1: 
Nigeria
Topics covered in this report: 
Cash Repatriation, Dividends, Intercompany invoices, Banking, AML, KYC, Hedging FX
Service providers discussed in this report: 
Standard Chartered, Ebillspay, NAFEX, Citi
Countries: 
Nigeria

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