Import & Trade
Why Your LC Application Keeps Getting Rejected
Tunde O.·Last updated ·6 min
Rejected LCs usually come down to documentation gaps, not the deal itself. Nigerian importers often lose weeks reworking applications that banks could have approved with cleaner paperwork.
Here are the Form M and LC issues that stall applications most often, and how to clear them before you submit again.
The documentation gaps banks flag
Incomplete invoices, mismatched beneficiary names, and missing Form M fields are the most common rejection reasons. Banks compare every line on your application to CBN and customs requirements.
- Invoice amount or currency does not match Form M
- Beneficiary name differs from supplier contract
- HS codes or product descriptions are too vague
Form M mistakes to fix first
Ensure your Form M reflects the actual supplier, shipment terms, and valid-for-forex goods category. Reused templates from old deals are a frequent source of rejection.
When direct supplier payment helps
For eligible trade payments, Raiz Business lets you settle suppliers directly while keeping compliant records, reducing reliance on LC delays for routine supplier invoices.
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Tunde O.
Tunde writes about car import logistics and FX for Nigerian dealers. He has spent a decade in auto trade finance.
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