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
A Canadian business usually pays a Nigerian supplier by bank wire in US dollars to the supplier's domiciliary account, by a money transfer service in naira to its NUBAN account, or, for larger orders, through a letter of credit or documentary collection. Whatever the route, keep the invoice, proof of payment and customs documents: the CRA expects business records kept for six years from the end of the tax year they relate to.
Start with what the supplier needs
The right route depends less on you than on the supplier's obligations in Nigeria. A supplier exporting commercial goods files an e-Form NXP and must bring the proceeds back into its domiciliary account within the CBN's deadline, so it will usually ask for US dollars by bank transfer. A small artisan selling a few pieces may simply want naira in its ordinary account. Ask, in writing, which account and currency the supplier needs and why.
The main routes
| Route | How it works | Costs to compare | Fits |
|---|---|---|---|
| Bank wire (SWIFT) | Your bank sends USD to the supplier's domiciliary account | Sending fee, FX margin from CAD, intermediary and receiving bank charges | Exporters with NXP, larger orders |
| Money transfer provider | Provider converts CAD and pays naira to a NUBAN, or USD where offered | Transfer fee and FX margin against the mid-market rate; limits | Smaller orders, artisans |
| Letter of credit | Banks pay against compliant shipping documents | Bank fees both sides, document checks | First orders, high value |
| Documentary collection | Banks exchange documents for payment or acceptance | Lower bank fees than an LC, less protection | Repeat suppliers |
| Cash in advance | Full payment before shipment | Whatever route is used | Supplier holds all the leverage |
The ITA's trade finance guide describes these trade methods from the exporter's side: cash in advance is safest for the seller, open account the riskiest, and letters of credit and documentary collections sit between. For an importer, the order is reversed.
How the costs work
Each route has two prices: the fee you see and the margin inside the exchange rate. Compare the rate offered with the mid-market rate at the same moment, then add the fees. A wire can also lose money to intermediary banks on the way, so ask whether the supplier received the full amount. Providers' fees and rates change; check each provider's own page or app on the day, and see the total cost of a transfer to Nigeria.
Worked example
Example only, invented figures. A Toronto importer owes US$5,000. Bank wire: the bank converts C$6,950 at its rate, charges a C$45 sending fee, and a US$25 intermediary deduction means the supplier receives US$4,975. To land the full US$5,000, the importer asks for fees to be charged to the sender (often called OUR), at an extra cost the bank quotes. The importer records the CAD total paid, C$6,995, for its books, and the USD invoice amount for customs.
Records for customs and tax
The CBSA bases duty on the value of the goods, and the importer remains responsible for that value being right. Payment records back it up. The CRA asks businesses to keep records for six years from the end of the last tax year they relate to, in Canada unless it gives permission otherwise. Keep together, per shipment:
- The supplier's commercial invoice and proforma.
- Proof of payment showing date, amount, currency and recipient account.
- The exchange rate and fees you paid, for your books.
- The bill of lading or air waybill and the CBSA accounting record.
- Any letter of credit or collection documents.
If you are a GST/HST registrant, the CBSA record of GST paid on import supports an input tax credit; see claiming GST paid at the border.
Paying a sole artisan rather than a company
Many Nigerian suppliers to Canadian shops are individuals or small workshops: a weaver in Iseyin, a bead maker in Bida, a tailor in Aba. They may not have a domiciliary account, an NEPC certificate or a company. That does not stop you buying, but it changes the paperwork:
- Ask for a written invoice in the maker's own name, with address, phone, description, quantity and price, even if it is handwritten and photographed.
- Pay into an account in that same name, not a friend's.
- Keep the chat or email where the price was agreed.
- If a courier or agent ships for the maker, get the agent's invoice for shipping separately from the goods.
On your Canadian side the CBSA still needs a commercial invoice describing the goods and their value, and your accountant still needs proof of what you paid. A Nigerian seller who is not registered for Canadian GST will not show a GST number, which is expected; the GST you claim back is the GST the CBSA charged at the border.
Protecting the payment
- Confirm bank details by phone on a number you already hold, especially if an email says the account has changed. See supplier changed bank details?
- Match the name. The account name should match the supplier on the invoice.
- Stage large orders. A deposit and a balance against the bill of lading limits what you can lose.
- Do not carry cash. Carrying C$10,000 or more across the border must be reported to the CBSA, and it leaves no payment trail for customs.
Where Pryme fits
A Pryme Business Account can be opened from Canada and holds NGN, USD, GBP and EUR. With Send you can pay a Nigerian supplier's account; the app shows the rate and the fee before you approve. The Finance agent can match each payment to its invoice and customs entry for you to review.
Questions people ask
What is the best way to pay a supplier in Nigeria from Canada?
It depends on what the supplier needs. Exporters with an NXP usually need USD into a domiciliary account by wire; small sellers may accept naira. Compare fees and the FX margin on the day.
Can I pay a Nigerian supplier in naira from Canada?
Yes, through providers that pay naira to Nigerian accounts. Check the supplier can accept naira for an export it has declared.
What records do I keep for the CRA?
Invoices, proof of payment, exchange rate and fees, and customs documents, kept for six years from the end of the tax year they relate to.
Is a letter of credit worth it for a first order?
Often, for a large first order with a new supplier, since the bank pays only against compliant documents. It costs more than a transfer.
Sources
- U.S. International Trade Administration: Trade Finance Guide, methods of payment · accessed Oct 2026
- CRA: Where to keep your records, for how long · accessed Oct 2026
- CBSA: Importing commercial goods into Canada, preparing to import · accessed Oct 2026
- Mondaq (Stren & Blan): CBN suspension of time extension for repatriation of export proceeds · accessed Oct 2026
- CBSA Memorandum D19-14-1: Cross-border currency reporting · 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.