Cross-Border Payments — Protecting Your Money
Payment is the number one concern for Nigerian SME exporters. Cross-border payments in Africa can cost up to 9% in fees and take up to two weeks to settle, and 68% of SMEs name payment risk as their top barrier to cross-border trade.
Your Payment Options
Advance Payment, Buyer pays 100% before shipment. Safest for you, but many buyers resist this with new trading relationships.
Partial Advance + Balance on Delivery, A common compromise: 30–50% upfront, remainder on confirmed delivery.
Escrow, A neutral third party holds the buyer’s full payment until delivery is confirmed, then releases it to you. The safest option for both parties.
Letter of Credit (L/C), A bank guarantee from the buyer’s bank, typically used for larger transactions.
PAPSS, The Pan-African Payment and Settlement System allows direct currency-to-currency settlement between African countries, without routing through US dollars or European banks. Ask your bank if they’re connected.
The rule: Never ship goods without a confirmed payment arrangement.
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