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
For a formal export, a dollar invoice is usually the cleaner choice: CBN rules expect export proceeds in foreign currency to reach the supplier's domiciliary account, and the US dollar is the currency most Nigerian exporters price in. With a dollar invoice you carry the GBP to USD rate movement between order and payment; with a naira invoice you carry the GBP to NGN movement, which has been far larger in recent years, and the supplier's bank may struggle to match it to its NXP. A sterling invoice moves all the rate risk to the supplier.
The currency on an invoice decides two things: who loses if exchange rates move before payment, and how easily the payment fits the supplier's paperwork in Nigeria. Neither is obvious from the price list, so it is worth settling before the first order rather than on the day you pay.
Who carries the risk under each option
| Invoice in | You carry | Supplier carries | Fit with Nigerian export rules |
|---|---|---|---|
| US dollars | GBP/USD movement until you pay | USD/NGN movement on its own costs | Matches proceeds into a domiciliary account |
| Naira | GBP/NGN movement until you pay | Very little on the sale itself | Unusual for a formal export; ask how its bank will treat it |
| Sterling | Nothing on the price | GBP movement against its costs | Possible if its bank receives GBP into a domiciliary account |
Under the CBN Foreign Exchange Manual 2026, effective 1 June 2026, as summarised by Pavestones Legal on Mondaq, non-oil export proceeds must be credited to the exporter's domiciliary account within 90 days. A domiciliary account holds foreign currency, which is why dollar or sterling invoices sit more naturally with that rule than naira ones. The rule itself is explained in why your supplier needs an NXP form.
What a rate move costs you
Worked example, dollar invoice
Example only, with invented rates: you order goods invoiced at $10,000 when the rate is $1.30 to £1, so the expected cost is £7,692.31. By the payment date the rate is $1.25, and the same invoice costs £8,000.00, which is £307.69 more. If sterling had strengthened instead, you would have paid less.
Worked example, naira invoice
Example only, with invented rates: an invoice of ₦15,000,000 at ₦2,000 to £1 costs £7,500.00. If the rate moves to ₦1,900, it costs £7,894.74, which is £394.74 more. The naira has moved in large steps in recent years, so the range of outcomes is wider. Check the current rate with your provider; this article does not quote one.
Ways to manage the risk
- Pay sooner. The shorter the gap between agreeing the price and paying, the smaller the exposure.
- Hold the currency. If you buy in dollars regularly, holding a dollar balance lets you convert when you choose rather than on each due date.
- Ask your bank about forward contracts. Many UK business banks offer to fix a rate for a future date; terms and minimums vary.
- Share the risk in the contract. Some buyers agree a price band: if the rate moves beyond it, the price is reviewed.
- Price in sterling. If the supplier will accept it, you remove the risk on your side; expect the supplier to build a margin into the price for carrying it.
UK accounting and VAT points
HMRC's VAT Notice 700/21 says invoice amounts may be in any currency, but the total VAT must be shown in sterling. HMRC publishes monthly and average exchange rates on the UK Trade Tariff service, and your customs agent will tell you which rate is used to convert a dollar invoice on your import declaration. Keep the rate you paid with the payment record, because the sterling cost in your accounts may differ from the customs value.
What suppliers usually prefer, and why
A Nigerian exporter buying raw materials, packaging and fuel in naira still often prefers to be paid in dollars, because the dollar proceeds can be held in its domiciliary account and the export paperwork is built around foreign currency. If you press for a naira price, the supplier may quote a higher figure to cover the risk of being paid in a currency that does not match its NXP. Ask rather than assume.
How to decide
- Ask the supplier which currency its bank needs for its NXP and export proceeds.
- If it is dollars, decide whether you will pay from sterling each time or hold dollars.
- Put the currency, the payment account and who pays bank charges in the contract.
- If a supplier asks for naira for a formal export, ask why and how its bank will match the payment; then read paying a Nigerian supplier from a UK business account.
For Nigeria-side context on pricing in a moving currency, see pricing imported goods when the naira keeps moving.
Where Pryme fits
A Pryme Business Account holds GBP, USD, EUR and NGN with local details for each, so you can keep a dollar balance for supplier invoices and convert only when you decide. Swap shows the rate first and the fee on its own line before you approve. Outside Nigeria, Pryme's activities are carried out through regulated partners.
Questions people ask
Is it better to be invoiced in dollars or naira by a Nigerian supplier?
For a formal export, dollars usually fit the supplier's export proceeds rules better. You then carry GBP/USD movement; with naira you carry GBP/NGN movement, which has been more volatile.
Can a Nigerian supplier invoice me in pounds?
Yes, if its bank can receive sterling into its domiciliary account. You then carry no rate risk on the price, and the supplier may price that risk in.
Who pays if the exchange rate changes before I pay?
Whoever is not invoicing in their own currency. If you are invoiced in dollars and hold sterling, a weaker pound raises your cost.
How do I show VAT on a dollar invoice?
HMRC VAT Notice 700/21 allows invoice amounts in any currency, but the total VAT must be in sterling.
Sources
- Mondaq (Stren & Blan): Explanatory note on the CBN's suspension of time extension for repatriation of export proceeds (7 Feb 2025) · accessed Oct 2026
- HMRC on GOV.UK: Record keeping for VAT (VAT Notice 700/21) · accessed Oct 2026
- UK Trade Tariff: HMRC exchange rates, average rates · accessed Oct 2026
- Mondaq (Deloitte): Central Bank of Nigeria automates the export process with the introduction of e-Form NXP (14 Nov 2019) · accessed Oct 2026
- Mondaq (Pavestones Legal): Key regulatory update, the CBN Foreign Exchange Manual 2026 (24 Jun 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.