Heritage Bank Plc, Nigeria’s most innovative banking service provider, has hosted the May 2018 edition of the banking
technique and practice meeting of the International Chamber of Commerce Nigeria.
The meeting
held at the Victoria Island Office of the financial powerhouse attracted
representatives of the ICC Nigeria as well as
the experts on the trade desks of different banks operating in Nigeria
and the apex bank in the country, the Central Bank of Nigeria.
Welcoming the
team, Mr. Dimitiri Dike, Chief Risk Officer for Heritage Bank, noted
that the current dynamics in the trade and commerce
nationally and internationally deserves urgent attention. He stated
that policy summersault and the need for reviews of operation sytems has
posed a lot of challenges that the visiting team needed to look into
and proffer appropriate solutions.
Dike charged
the trade experts to review the new global order of international trade
that now encourages an open account method of
transaction in the global trade.
An open account
transaction in international trade is a sale where the goods are
shipped and delivered before payment is due, which
is typically in 30, 60 or 90 days. Obviously, this option is
advantageous to the importer in terms of cash flow and cost, but it is
consequently a risky option for an exporter.
Responding,
Chief (Dr.) Raymond Ihyembe, Chairman, ICC Nigeria Banking Commission,
warned that steps must be taken to tackle the possible
effects of the current policy.
This, he said,
becomes imperative in cview of the fact that Nigeria’s economy depends
solely on crude oil. According to him, any massive
drop in the price of crude oil in the global market usually affects the
aggregae economy greatly.
Ihyembe
therefore said in such instances trade and commerce, which is supposed
to be the safety net for the nation is again facing
turbulence as a result of policy change.
Corroborating
the chairman’s views, Dr. (Mrs.) Omolara Akanji, Vice Chairman, ICC
Nigeria, Banking Commission, advised banks in Nigeria
to always attend the global ICC events where policies are formulated.
She expressed concerns that Nigerian banks were not at the ICC Banking
Commission meeting held in Miami, USA in April 2018, where modalities of
the new policy were discussed.
According to
her, their presence at such occasions would have helped to re-shape
their orientation about the kind of reviews and adjustments
their current structures require.
Meanwhile, the
bankers present were of the opinion that they were aware of the new
policy, but their common fear is there is currently
a gap between the apex bank and the Nigeria Customs. They said banks
relate with the documentation presented by exporters and importers,
while Customs relates with the goods involved. With this, they said,
banks are incapacitated to some extent.
Meanwhile, to
address the deficiency, the chairman suggested inuguaration of a special
committee that will review the status quo and
then come up with the treat, risks and opportunities of the current
policy.
The suggession
was unanimously agreed to and the special committee comprising five
banks was given three weeks to submit its recommendations
on how to mitigate the risk of open account policy in the international
trade.
L-R: Secretary General, ICC Nigeria, Mrs. Olubunmi Oguntuyi; Chief Risk
Officer, Heritage Bank Plc, Mr. Dimiri Dike; Vice Chairman,
International Chamber of Commerce (ICC), Banking Commission, Dr.
Omolara Akanji; Chairman, ICC, Nigeria Banking Commission,
Dr. Raymond Ihyembe and Nneka Oshobi, Head, International Services, during the Banking Techniques and practice meeting,
hosted by Heritage Bank Plc at its office, in Lagos…yesterday.
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