How truck payments actually work: T/T splits, when an L/C makes sense, escrow-style protections and how fleet orders stage payments.
The payment question is really a trust question: how does each side stay safe? Here is how standard export practice answers it for Nigerian truck buyers.
T/T telegraphic transfer — the default
The standard structure for factory-direct truck exports:
- 30% deposit with the signed proforma invoice — starts production
- 70% balance against copy of the bill of lading — before documents are released
The bill of lading is the control point: title moves with the original document, and the seller releases it on payment. Never pay 100% up front; a manufacturer asking for it is a red flag.
Letter of Credit — when banks carry the trust
An irrevocable L/C at sight substitutes bank undertakings for mutual trust: your bank pays when documents comply. Expect:
- Stricter document discipline — every clause must match
- Bank charges on both sides (typically hundreds of dollars total)
- Longer setup time; FX processes sit with your bank
For first-time large orders or corporate buyers with bank lines, the L/C is often worth the overhead.
Staged shipments for fleets
Multi-unit orders rarely ship at once. Common practice: deposit on the full order, then per-shipment balances as each batch sails. This matches your Form M structure too — discuss batching with your bank when opening it.
What protects the buyer
- Written specification annexed to the PI
- Pre-shipment inspection (SGS/BV/TÜV or your own inspector) as a payment condition
- Photographic production updates at agreed milestones
- Description language frozen across PI, invoice and bill of lading
Currency and rate notes
Quotations are typically USD. Discuss the quote validity period (steel and freight markets move) and lock the quotation before opening Form M so your duty math stays valid.
Regulatory figures and duty rates change. Always confirm current requirements with the Standards Organisation of Nigeria (SON), the Central Bank of Nigeria (CBN), Nigerian Customs Service and your licensed clearing agent before you ship.