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
Nigerian importers usually borrow through their bank's trade finance desk rather than through a general loan: the bank opens a letter of credit, issues a guarantee or funds an import loan tied to a specific shipment registered on Form M. Availability depends heavily on foreign exchange, because the bank must source dollars to pay the supplier, so the naira cost of the loan can change between opening and settlement.
Trade finance is shipment finance
A general business loan gives you naira to spend as you like. Trade finance is narrower: it finances one shipment, from one supplier, under documents the bank can follow. That narrowness is why banks will lend for imports at all, because the goods and the documents give the bank some control. It is also why every trade facility links back to your import paperwork.
Your import is registered with your bank on Form M, and the bank processes the foreign payment against that registration. Our import documents checklist explains Form M, proforma invoices and the other documents banks ask for. The CBN's Foreign Exchange Manual, whose fourth edition took effect on 1 June 2026, sets the rules banks follow when they process these payments.
The main instruments
| Instrument | How it works | Who carries the risk |
|---|---|---|
| Letter of credit (LC) | Your bank promises to pay the supplier when compliant shipping documents are presented | Bank carries payment risk to the supplier; you owe the bank |
| Import loan or LC refinancing | Bank pays the supplier, then gives you time to repay in naira as you sell the goods | You carry repayment risk; bank holds documents or goods as security |
| Standby LC or bank guarantee | Bank guarantees payment if you fail to pay a supplier on open account | Bank, backed by your security |
| Customs or performance bonds | Bank guarantees obligations to customs or a buyer | Bank, backed by your security |
Access Bank's bonds and guarantees page (Oct 2026), for example, lists standby letters of credit, advance payment guarantees, performance and bid bonds, and customs and importation bonds, usually with tenors of a year or less. For the trade-off between paying through an LC and paying on open account, see letter of credit vs open account.
What banks ask importers for
- A trading history in the account: banks prefer importers whose sales already pass through them.
- CAC documents and board resolution authorising the facility.
- Management or audited accounts and stock records.
- The shipment documents: proforma invoice, Form M, insurance and, later, the bill of lading.
- Security: cash margin (a deposit of part of the LC value), property, or a lien on goods and documents.
- A clear sales plan showing how the goods will be sold within the loan period.
A cash margin is common for smaller importers: the bank asks you to deposit part of the LC value in naira at opening, and the facility covers the rest. Ask what margin applies and whether it earns anything while held.
Why FX access shapes everything
An importer's real risk is not only the interest rate but the exchange rate. You borrow and sell in naira, but the supplier is paid in dollars, euros or yuan. If the naira weakens between the day you price your goods and the day the bank buys the currency, your cost rises.
Worked example
An example, with no real exchange rate. An importer opens an LC for a $20,000 shipment and prices the goods assuming one naira cost for the dollars. If the naira weakens 8% before the bank settles, the naira cost of the shipment rises 8%. If the importer's planned margin on the goods was 15%, an 8% currency move removes more than half of it, before any interest on the import loan. If the loan also costs 2% for the period, the margin falls to about 5%.
This is why banks look hard at how quickly you sell, and why some importers fix their naira cost early or hold foreign currency received from earlier sales. See pricing imported goods when the naira moves. Check today's official rate on the CBN website rather than relying on any figure you see quoted online.
Cost of trade finance
Trade facilities carry several charges: LC opening and amendment commissions, confirmation fees if a foreign bank confirms the LC, interest on any import loan, and foreign bank charges. Banks set these individually; ask for a full schedule before you open. For a benchmark on interest, the CBN reported an average maximum lending rate of 29.20% a year for August 2026, and the Monetary Policy Rate was set at 23% in September 2026.
What to check first
- Ask your bank for its trade finance tariff, including every commission, before signing.
- Confirm the cash margin and when it is released.
- Match the loan tenor to how long it takes you to clear and sell the goods.
- Verify supplier bank details by phone before any payment; see supplier payment fraud.
Where Pryme fits
Pryme does not provide letters of credit or import loans. A Pryme Business Account holds NGN, USD, GBP and EUR with local account details for each, so foreign-currency receipts can stay in the currency they arrived in until you choose to convert with Swap, which shows the rate and fee before you approve. See business multicurrency.
Questions people ask
How do importers get loans in Nigeria?
Mostly through a bank's trade finance desk: letters of credit, import loans and guarantees linked to a specific shipment and its Form M.
What is the difference between an LC and an import loan?
An LC is the bank's promise to pay your supplier against documents. An import loan gives you time to repay the bank in naira after it has paid the supplier.
Do I need collateral for trade finance in Nigeria?
Usually yes: a cash margin, property, or a lien on the goods and documents. Requirements vary by bank and by your trading history.
Why did my LC cost more than expected?
Often because the exchange rate moved between pricing and settlement, or because of opening, amendment and confirmation commissions. Ask for the full tariff in advance.
Sources
- Mondaq: Key regulatory update in Nigeria, the CBN Foreign Exchange Manual 2026 (24 Jun 2026) · accessed Oct 2026
- Access Bank: Bonds and Guarantees · accessed Oct 2026
- CBN: Money Market Indicators (prime and maximum lending rates, August 2026 data) · accessed Oct 2026
- CBN: Monetary Policy Decisions (MPC meeting of 21-22 September 2026) · 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.