This product is in line with the Federal Government’s initiative to hasten economic development by encouraging job creation and improving the present dismal balance of trade in Nigeria hence easing pressures on scarce foreign exchange presently deployed to the importation of food commodities and other items
It is a short term facility under this program, BOA provides credit financing at pre-shipment and invoice discounting of confirmed orders at the post-shipment stage; thereby assisting Nigerian exporters in making sales that might not otherwise occur. The product provides direct credits to exporters for production or procurement at pre-shipment and avails invoice discount at post-shipment on the bases of payments due from foreign banks under confirmed letters of credit (LCs) to Nigerian exporters. It is the Nigerian exporter who must request for a confirmed letter of credit and bear the cost of confirmation. As such, the exporter may factor this cost into the selling price prior to the contract negotiation process. The post shipment discount covers up to 70 percent of the export proceeds while pre-shipment financing shall be 70 percent of verifiable export off-take contract.
