CBN Adapts to Forex Crisis, Extends Credit Letter Issuance Timeline

In response to the prevailing foreign exchange crisis, the Central Bank of Nigeria (CBN) has adjusted the timeline for issuing letters of credit, extending it from 24 hours to a span of five working days. This modification, outlined in the recently revised CBN Service Charter, aims to facilitate smoother business operations in the face of challenges posed by the ongoing forex crisis.

Governor Olayemi Cardoso emphasized the significance of this alteration, asserting its alignment with SERVICOM Nigeria’s directives, which advocate for enhanced customer service delivery. The updated Service Charter introduces a standardized Customer Complaints Form, designed to report service failures, along with a mechanism for promptly addressing such issues across various banking services.

Notably, the 2023 service charter marks a departure from the previously approved 2020 charter, which stipulated a 24-hour timeline for issuing and managing letters of credit. The new five working days timeframe reflects the CBN’s commitment to adapting to current economic conditions.

Furthermore, the CBN has extended the timeline for Form M and NXP registration from 24 hours to two working days. Governor Cardoso expressed a dedication to providing “responsive and citizen-friendly governance through quality service delivery that is efficient, accountable, and transparent.”

In response to these changes, Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise and a newly appointed member of the Nigeria Customs Service Board, hailed the revised service charter. He emphasized its potential to effectively manage cash flow and instill confidence in the banking transaction process.

Recent market dynamics indicate a positive shift as the Naira bounced back on Thursday against the Dollar, exchanging at N843.07/$1, a notable improvement from N951.22/$1 on the preceding Wednesday in the official forex market.