AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Not for a naira loan. In April 2024 the CBN prohibited banks from using foreign currency-denominated collateral, such as a dollar domiciliary balance, to secure naira loans; the only exceptions reported were Federal Government Eurobonds and guarantees from foreign banks, including standby letters of credit. If you hold dollars and need naira, the practical choices are to convert part of the balance, borrow against a naira deposit, or take an unsecured or other secured naira loan.
For years, a common move for Nigerians with dollar savings was to keep the dollars and borrow naira against them. The bank placed a lien on the domiciliary balance, lent naira, and the customer kept their foreign currency position. That route has largely closed, and many people only find out when their bank declines the request.
What changed in 2024
On 8 April 2024, TheCable reported a CBN circular stating that "the current practice of using foreign currency-denominated collaterals for Naira loans is hereby prohibited". The report gave these details:
- Ban: banks may not accept foreign currency, including domiciliary balances, as security for naira loans.
- Exceptions: Eurobonds issued by the Federal Government of Nigeria, and guarantees from foreign banks, including standby letters of credit.
- Existing loans: exposures secured this way had to be wound down within 90 days, or be risk-weighted at 150% for capital purposes, alongside other sanctions.
The CBN's reasoning, as reported, was to stop banks building naira credit on top of dollar positions, which can feed demand pressure on the naira. We could not open the circular itself; the figures above come from the press report, so ask your bank to show you the current rule.
If you had such a loan before April 2024
The reported 90-day wind-down meant naira loans secured by dollar deposits had, in practice, to be repaid, moved onto other security, or settled from the dollar balance. If your bank applied your dollars, ask for a statement showing the exchange rate used and the amount credited against the loan, and keep it with your records.
Can you borrow dollars against dollars?
A loan in the same currency as the security is a different question. Banks lend in foreign currency mainly to businesses that earn foreign currency, such as exporters, because a borrower who earns naira and owes dollars carries currency risk. The CBN Foreign Exchange Manual was updated, with a 4th edition implemented from 1 June 2026 according to a Mondaq summary, but the summary we read did not address foreign currency loans to individuals. Ask your bank directly whether it offers any dollar-for-dollar facility to personal customers; do not assume it does.
Practical alternatives if you hold dollars and need naira
| Option | How it works | Trade-off |
|---|---|---|
| Convert part of the balance | Sell only the dollars you need at the rate shown | You lose that slice of your FX position; check the rate and any spread first |
| Naira fixed deposit loan | Borrow against a naira deposit you already hold | Needs naira savings; see the cash-backed loan guide |
| Salary or personal loan | Unsecured naira credit based on income | Higher rate; needs steady naira income |
| Secured naira loan on other assets | Vehicle, property or shares as security | Valuation and perfection take time and cost |
| Foreign bank guarantee or SBLC | An exception in the 2024 rule | Mainly for businesses with foreign banking relationships; costly |
Worked example: convert or borrow?
Example only, with illustrative figures. You need ₦3,000,000 for six months and hold dollars worth more than that.
- Borrow naira unsecured: at an illustrative 30% a year, flat, six months of interest is ₦3,000,000 x 30% x 6/12 = ₦450,000, plus a management fee of up to 1% (₦30,000) under the CBN Guide to Charges. Total cost about ₦480,000.
- Convert dollars: no interest, but you give up the dollars. Your cost is the spread on the conversion now and, if you later buy dollars back, the spread again plus any move in the exchange rate.
If you expect the naira to weaken over the six months, keeping dollars and paying ₦480,000 might look attractive; if not, converting is cheaper. Nobody can predict the rate reliably, so many people split the difference: convert enough for the urgent part and avoid borrowing for the rest. Check today's rate on an official or provider page rather than relying on a figure from memory; see hidden FX margins for how to see the real cost of a conversion.
What to check first
- Ask your bank, in writing, whether it can lend against your domiciliary balance and under which exception, if any.
- Compare the full cost of a naira loan (interest, fees, insurance) with the spread on converting.
- Check whether you have naira savings that could back a cheaper cash-secured loan; see loan against your fixed deposit.
- Read saving in dollars in Nigeria for the risks of holding FX in the first place.
Where Pryme fits
Pryme is not a lender of naira against dollars. A Pryme account holds NGN, USD, GBP and EUR, money stays in the currency it arrived in, and Swap converts only when you choose, with the rate shown first and the fee on its own line before you approve. That makes it simple to convert just the slice you need. See multicurrency accounts.
Questions people ask
Can I use my domiciliary account as collateral for a loan in Nigeria?
Not for a naira loan. The CBN prohibited foreign currency collateral for naira loans in April 2024, with exceptions for FGN Eurobonds and foreign bank guarantees, as reported at the time.
Can banks give naira loans against dollars?
Not using dollar balances as security, under the April 2024 CBN directive. Ask your bank which other security it accepts.
Can I get a dollar loan in Nigeria as an individual?
Banks mainly lend foreign currency to businesses with foreign currency income. Ask your bank directly; personal dollar loans are uncommon.
Is it better to sell my dollars or take a loan?
It depends on the loan's full cost against the conversion spread and your view of the exchange rate. Work out both in naira before deciding.
Sources
- TheCable: CBN bans use of foreign currency as collateral for naira loans (8 April 2024) · accessed Oct 2026
- Mondaq: Key regulatory update - the CBN Foreign Exchange Manual 2026 (24 June 2026) · accessed Oct 2026
- CBN: Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (effective 1 January 2020) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.