On January 29, 2026, the Nigerian naira hit a historic low against the US dollar, with the exchange rate dropping to 0.000718 USD per naira, following a fresh 20% depreciation amid soaring inflation.
Nigeria relies heavily on imported safety shoes, with China, India and Italy being its major suppliers. The naira’s depreciation has sharply increased the local cost of imported safety toe boots, as Nigerian importers now need to spend more naira to secure the same amount of foreign exchange for payments. Worse still, the CBN’s forex restrictions, though focused on specific sectors, have created a widespread shortage of foreign currency, making it hard for importers to open LCs or settle payments on time.
For rigger work boots exporters to Nigeria, the risks of delayed payments or non-payment have surged dramatically. We strongly advise exporters to adhere to the principle of “payment before delivery” or adopt RMB settlement to avoid foreign exchange collection risks. While currency depreciation may seem to boost export competitiveness in theory, the prevailing forex crunch and policy uncertainties in Nigeria have offset this advantage.
As Nigeria’s inflation continues to climb and its exchange rate remains highly volatile with no signs of short-term stabilization, the Nigerian market, once a key target for safety shoes exports including waterproof safety leather boots exports, is now surrounded by unprecedented economic risks. For safety shoes exporters, this means that the traditional business model is no longer applicable, and every link of foreign trade transactions is facing potential threats. The depreciation of the local currency directly affects the actual return of export payments, and high inflation leads to the increased operating pressure of local importers, which may lead to payment delays, order reductions and other issues that damage the interests of exporters.
In this context, safety shoes exporters must stay highly vigilant at all times, not ignore the potential risks brought about by economic instability, and always put risk prevention and control first. It is crucial to proactively adjust payment terms: appropriately increase the proportion of advance payments, try to use US dollars and other hard currencies for settlement, avoid long-term account periods, and choose standardized and secure settlement methods. In addition, it is necessary to strengthen the review of customer credit, track the payment status in real time, and clarify the responsibilities of both parties in the contract in terms of risk sharing. Only by taking the initiative to adjust strategies and build a comprehensive risk defense line can exporters effectively protect their funds and business interests, and steadily advance their business in the challenging Nigerian market.
Post time: Jan-29-2026
