Heritage Bank Plc has hosted the May 2018 edition of the banking technique and practice meeting of the International Chamber of Commerce Nigeria.
The lender said in a statement on Sunday that the meeting attracted representatives of the ICC Nigeria as well as the experts on the trade desks of different banks operating in Nigeria and the Central Bank of Nigeria.
The Chief Risk Officer, Heritage Bank, Mr. Dimitiri Dike, noted that the current dynamics in the trade and commerce nationally and internationally deserved urgent attention.
He stated that policy summersault and the need for reviews of operation systems had posed a lot of challenges that the visiting team needed to look into and proffer appropriate solutions.
Dike asked 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.”
According to the statement, 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.
The Chairman, ICC Nigeria Banking Commission, Chief Raymond Ihyembe, warned that steps must be taken to tackle the possible effects of the current policy.
He described this as imperative “in view of the fact that Nigeria’s economy depends solely on crude oil,” adding that “any massive drop in the price of crude oil in the global market usually affects the aggregate economy greatly.”
The Vice Chairman, ICC Nigeria, Banking Commission, Dr. Omolara Akanji, advised banks in Nigeria to always attend the global ICC events.
She expressed concerns that Nigerian banks were not at the ICC Banking Commission meeting held in Miami, USA in April this year, where modalities of the new policy were discussed.