Trade Credit Insurance for Nigerian Businesses Explained

Trade credit insurance protects a business against the risk that a buyer does not pay. For Nigerian exporters and suppliers selling on credit terms — at home or abroad — it turns a scary unknown into a managed cost, and for cross-border sales it sits alongside the FX risk tied to the exchange rate.

How it works

• You sell on credit — goods now, payment in 30, 60 or 90 days.
• The insurer covers non-payment — up to an agreed limit per buyer.
• You claim — if the buyer defaults or becomes insolvent.

Why it pairs with FX

An export sale carries two risks at once: will the buyer pay, and what will the dollars be worth in naira when they do? Credit insurance handles the first; a forward contract or a timely conversion handles the second. It pairs naturally with letters of credit and export finance as a risk-management set for exporters.