IFC & Union Banks Form An Alliance To Boost Trade Finance In Nigeria

As per the latest news around the world of banking, the leading member of the World Bank Group IFC has come into an agreement with Union Bank to come up with a finance guarantee facility, as per their latest announcements. The expected partnership between these two banking union’s will prove to be an effective boost for Nigeria and will provide them with access to finance for local business, as a move to increase international trade from the country.

Trade finance has been one of the most effective keys towards the exponential growth of a business in the trying times of Covid-19, where the entire trade supply chain is facing a derail in management.

Considering the major challenge of last-mile availability for suppliers in recent times, trade finance has proved to be a viable solution to keep the workflow smooth and running. Connecting businesses across the world with suppliers has been one of the major USP of such a finance setup.

Talking of the recent announcement that was made, the new partnership is all geared up to aim and initiate aid to the country’s economy from the impact of the COVID-19 pandemic. The $40 Million facility that comes under the IFC’s Global Trade Finance Program (GTFP) will come into the support of the Union Bank and work to cement working partnerships with nearly 300 major banks within the GTFP network.

At the time their operations resume, the partnership facility will allow the users to get a seamless flow of trade credit into the Nigerian market. Considering the current situation of trade and flow of the supply chain across the globe, imports are a rare situation. For a country like Nigeria that depends majorly on the imports to keep their businesses up and running, the facility will prove to be a critical help for the country’s chance at doing exports to generate the much-needed foreign exchange.

According to the terms of the agreement, the GTFP is setting up meetings with the banks to come over with partial or full guarantees that will be covering payment risk on Union Bank’s trade-related transactions.

The suggested guarantees which are being sought by the GTFP are said to be transaction-specific and are expected to be demonstrated and covered by a variety of underlying instruments. The list of instruments that will cover the agreement would include letters of credit, guarantees, trade-related promissory notes, advance payment guarantees, and bonds.

Source: https://thepaypers.com/e-invoicing-supply-chain-finance/ifc-union-bank-to-boost-access-to-trade-finance-in-nigeria--1245091

Other news

Most Recent Blogs View All Blogs

08 Feb

Blockchain's Impact on Trade Finance: Shaping Global Commerce

Trade financing facilitates global commerce but involves antiquated systems reliant on manual paperw...

06 Feb

India's Trade Dynamics Amidst the Red Sea Crisis

As of now, there has been no significant impact on India's exports and imports owing to the crisis i...

31 Jan

Choosing the Right Trade Finance Instrument for Your Business

Understanding Trade FinanceTrade finance facilitates transactions and lowers risks for buyers and se...


Emerio Banque is an innovative global financial institution incorporated in England and Wales with Legal Entity Identifier 875500DGPPWAFABBK130. Emerio Banque does not offer its products and services to businesses and/or persons registered in the United Kingdom.

No information on this website should be construed as a solicitation, offer, recommendation, and representation of suitability or endorsement of any security, investment or strategy.

Important Notice

Emerio Banque would like to advise its customers to report any suspicions which they may have regarding the identity of any intermediary who promotes products or services offered by us or any intermediary bearing similar names. You should verify with Emerio Banque by calling our Customer Service Number on +44 203 059 7831 or emailing help@emeriobanque.com

Please also be aware of bogus SMS messages and voice message calls or fraudsters who impersonate the staff of Emerio Banque.

We have recently become aware of a number of entities with different names misrepresenting themselves as associates, partners or agents of Emerio Banque.

Please be informed that Emerio Banque is not associated with nor do we have any business connections or dealings with such institutions.

Emerio Banque takes all information regarding suspicious fraudulent activity very seriously. Please immediately inform us at compliance@emeriobanque.com if you suspect or are approached by persons misrepresenting or impersonating Emerio Banque and/or its officials. We will make investigations and will take legal action where necessary.