If you sell professional services in Nigeria, you have probably lived this moment: you agree a fee in naira, the contract runs for several months, and by the time the last invoice is paid the money buys noticeably less than it did on day one. The reverse problem exists too. Quote in dollars and a local client may struggle to pay, dispute the conversion rate or simply walk away.
Dual-currency pricing is how serious freelancers, consultants and contract engineers manage this risk. Done well, it protects your income without making the client feel they are carrying all the uncertainty. This guide explains the main approaches, shows a simple worked example and lists the contract clauses worth negotiating.
Why currency risk is a pricing problem, not just a finance problem
Many independent professionals set their rate by looking at what peers charge, then treat exchange-rate movement as bad luck. A better habit is to treat it as one of the costs you must price. Three things make this especially important in the Nigerian market:
- Your costs are mixed. Rent, data and staff may be in naira, while laptops, software subscriptions and professional memberships are often tied to foreign currency.
- Your clients are mixed. Multinationals and international platforms often budget in dollars or pounds, while local firms budget in naira.
- Payment can be slow. The longer between invoice and cash, the more any currency movement hurts.
Four ways to structure a fee
| Approach | How it works | Best for | Watch out for |
|---|---|---|---|
| Fixed naira fee | Price and pay entirely in naira | Short jobs, local clients, quick payment | Exposure on longer contracts |
| Fixed foreign-currency fee, paid in that currency | Price and settle in dollars, pounds or euros | International clients, remote work | Client may have no easy way to pay; your own regulatory and banking steps |
| Foreign-currency price, paid in naira at an agreed rate | Fee fixed in dollars; each invoice converted to naira at a defined reference rate | Local clients who budget in dollars | Dispute over which rate applies, so define it precisely |
| Naira fee with adjustment clause | Base fee in naira, revised if the exchange rate or an agreed index moves beyond a threshold | Long retainers and multi-month contracts | Needs clear trigger, formula and review dates |
A worked example (illustrative numbers only)
Imagine a consultant agrees to provide cost-control support to a manufacturer for six months. Both sides want predictability. They agree:
- A monthly fee expressed as USD 1,000 (a made-up figure for illustration).
- Each invoice is issued in naira, converted at the reference rate published on the invoice date by a named source the parties both accept.
- Payment is due within 14 days; late payment is re-converted at the rate on the payment date, so delay is not a free option for the client.
Under this structure the consultant keeps the value of the fee in hard terms, the client still pays locally and both can predict the arrangement. The client may reasonably ask for a cap or a floor on the rate; that is a negotiation point, not a deal-breaker.
Clauses to write down
- Currency of account and currency of payment. Say which currency the fee is defined in and which one the money actually moves in.
- Reference rate and source. Name the published rate, the date it applies and what happens if the source stops publishing.
- Adjustment trigger. If you use an adjustment clause, state the threshold (for example, a movement beyond an agreed percentage) and the formula.
- Review dates. Quarterly reviews are common on retainers, and clients often prefer them to open-ended clauses.
- Late-payment treatment. Decide whether late invoices are reconverted or carry interest.
- Taxes and deductions. State whether fees are quoted before or after VAT and withholding tax, and who handles remittance paperwork.
- Bank charges. Specify who bears transfer and conversion costs.
The goal of a currency clause is not to win an argument with your client. It is to make sure nobody has to argue later.
How to raise it without scaring the client
Many freelancers avoid the conversation because it feels adversarial. In practice, experienced procurement and finance teams usually welcome clarity. A few tips:
- Frame it as predictability for both sides. A defined rate protects the client from surprise invoices too.
- Offer options. “Fixed naira for three months, then review” and “dollar-linked monthly fee” give the client a choice.
- Keep the formula simple. If finance cannot reproduce your invoice calculation in a minute, the clause will cause friction.
- Put it in the proposal, not after the kick-off. It is much harder to introduce a currency clause once work has started.
Protect yourself beyond the contract
- Shorten your payment cycle. Milestone or monthly invoicing reduces exposure compared with one large payment at the end.
- Match currency to costs. Where possible, hold some earnings in the currency of your foreign-priced expenses, within the rules that apply to you.
- Keep a rate-review habit. Revisit your standard rates at least every quarter instead of waiting for a painful year-end.
- Keep records. Save the rate source, invoice date and conversion workings for every invoice.
Frequently asked questions
Should I always quote in dollars?
Not necessarily. Short jobs for local clients can sensibly be priced in naira. The longer the contract and the more of your costs are foreign-linked, the stronger the case for a foreign-currency reference or an adjustment clause.
What if the client refuses any currency clause?
Then price the risk instead: shorten the term, invoice more often, ask for a deposit or build a modest buffer into the rate. The risk does not disappear because it is left unwritten.
Do these rules differ for individuals and registered companies?
Tax, banking and foreign-exchange rules can differ depending on how you are registered and where your client is based. Check with an accountant or tax adviser before finalising terms.
This article offers general guidance, not financial, legal or tax advice. The figures above are illustrative only. Rules and market conditions change, so confirm current requirements with a qualified professional.
