High-rise apartment tower photographed in black and white

Market note, May 2026. For current figures see our live rate board.

Monetary policy sounds like something that happens to other people. For an importer it decides two things directly: what borrowing costs, and how steady the naira is between agreeing a price and paying it.

Why caution is the usual posture

A central bank holding a firm line on inflation is generally holding interest rates where they are, or higher, rather than easing. That is uncomfortable for anyone borrowing, and it is the trade-off being made deliberately. Loosening too early risks the currency, and a weaker naira raises the cost of every imported input, which feeds back into the inflation the policy is meant to contain. For an importer, tighter policy usually means a steadier currency and dearer money at the same time.

What that costs you

Financing is one of the largest hidden costs in an import, and it is rarely counted properly. Borrow at Nigerian commercial rates over a five-year term and the interest can approach or exceed the price of the equipment itself. On a machine, that is not a footnote to the purchase. It is a second purchase. The same applies to working capital. Resin, packaging and components are bought for cash, often in advance, while customers pay on terms. Financing that gap has a price, and at current rates it is a meaningful share of what you earn on the goods.

What to do with it

Count the financing in the purchase decision rather than treating it as an accounting matter for later. A machine that costs 30% more once its funding is included may lose to a cheaper one it would otherwise have beaten. Work out how many days of production you can fund while waiting to be paid. That number, rather than your machine capacity, is the real size of your business at the start. And where policy is holding the currency steady, use the calm rather than assuming it. A stable window is when to settle prices and complete payments, not a reason to stop watching the rate.

The one thing worth remembering

A cautious central bank is generally good news for the side of your costing that depends on the exchange rate, and bad news for the side that depends on credit. Which of those matters more depends entirely on how your purchase is funded, and that is worth working out before you commit rather than afterwards.

Costing a purchase that involves borrowing? We build the landed cost including the financing and currency exposure, so the figure you decide on is the figure you will actually pay. There is no charge for the first review. Request a cost review or get in touch.