A credit administration expert, Busari Akande, has cautioned that the naira's weakening could push up loan defaults, hurt business operations and make borrowing harder across Nigeria, according to a report by Daily Post Nigeria published on November 5, 2026.
Akande, who is a Fellow of the Institute of Credit Administration (FICA), was reacting to the currency's continued fall on the Nigerian Autonomous Foreign Exchange Market (NAFEM) at the start of November. He said the trend could have wider consequences for businesses and the banking sector.
Small daily move, big pressure
By his account, a daily depreciation of 0.12 per cent may look minor. However, he argued it could add to the strain on firms that already contend with expensive borrowing and climbing operating costs.
The warning appears in his analysis titled "Unmasking the Naira's November Shuffle: A Dual Lens on Credit Risk and Financial Resilience". In it, he says companies that rely on imports, especially manufacturers and consumer goods makers, may pay more for raw materials and see thinner profits.
That squeeze, he cautioned, could weaken their ability to service loans. Some firms might end up taking extra short-term financing just to keep running, instead of putting money into expansion.
Households and SMEs exposed
Akande, described as an Islamic finance and credit administration specialist, also raised concern about families. A weaker currency, he said, can erode household purchasing power and reduce people's capacity to repay personal loans, mortgages and other credit.
He singled out small and medium-scale enterprises (SMEs) as especially vulnerable to swings in the exchange rate, since they have little access to tools for hedging currency risk.
He added that banks' appetite for government securities with attractive yields could leave less money available for lending to the private sector, making it tougher for businesses to get financing.
Buffers and recommendations
Even so, Akande pointed to protections against a deep crisis. He put Nigeria's foreign exchange reserves at $55.22 billion and noted that official and parallel market rates are close to each other.
He urged banks and credit administrators to tighten loan monitoring, run regular stress tests against a possible rate of N1,450 to the dollar, and spot vulnerable borrowers early, before they default.
For viable businesses facing temporary cash-flow trouble, he recommended restructuring, such as longer repayment periods and moratoriums on principal payments.
In his view, the naira's movement should not cause panic. Instead, he said it should push financial institutions and corporate managers toward more proactive risk management to protect businesses and keep economic activity going.
