Members from Africa, EU and the U.S. compared their experiences with FX and Treasury in Nigeria, including cash repatriation, hedging, local banking and bank accounts, sweeping, payments and signatories.
The call was chaired by Arnaud Francq, the key discussion details are below.
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
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