Trade Credit Insurance for Nigerian Importers Explained

Trade credit insurance protects a business when a buyer fails to pay — a real risk when you sell on credit or ship before being paid. For Nigerian importers and exporters trading across borders, it turns an uncertain receivable into a more bankable one, and it sits alongside tools like the letter of credit.

How it works

• You insure receivables — cover against a buyer’s non-payment or insolvency.
• The insurer assesses buyers — and sets limits per customer.
• A claim pays out — a share of the loss if the buyer defaults.

Why it matters, and the FX angle

Cover makes lenders more comfortable, which can unlock invoice financing and LPO financing. Because cross-border deals settle in foreign currency, the exchange rate and a forward contract still shape the naira outcome — insurance protects the receivable, not the exchange rate.