Bills for Collection is also a mode of payment used for the importation of visible goods to Nigeria.

A Bill for Collection is the handling of documents (financial and/or commercial) by banks in accordance with instructions received from the exporter in order to:

  • Obtain payment or acceptance or
  • Deliver documents against payment and/or acceptance or
  • Deliver documents on other terms and conditions.

The major participants of a Bill for Collection transaction are:

  • The Buyer/Importer/Applicant/Drawee
  • The Seller/Exporter/Beneficiary/Drawer
  • Payee (in the case of domiciliation of proceeds)
  • The importer's bank/Collecting bank
  • The exporter's bank/Remitting bank 

Requirements to Pay on a Bills for Collection

  • Accepted Form M
  • Customers Bid Letter
  • Shipping Documents (transportation and commercial documents)
  • Accepted Bill of Exchange
  • Exchange control documents

Bill of Exchange

 A bill of exchange is a written order used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date.