How To Receive Money From Abroad in Nigeria
Guide
A writer and editor at Monito, Jarrod is passionate about helping people apply today’s powerful finance technologies to their lives. He brings his background in international affairs and his experiences living in Japan to provide readers with comprehensive information that also acknowledges the local context.
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Read moreIn 2020, the Central Bank of Nigeria made the decision to only allow remittances in the form of US dollars (USD) to enter Nigeria. However, that decision was reversed in July 2023, which means that Nigerian expats can once agains send Nigerian Naira (NGN) to their friends and family members who live in the country.
WorldRemit is one of the cheapest and most reliable money transfer companies that does operate in Nigeria. With this guide, Monito will help you better understand the situation. Whether you live in the United States, South Africa, or elsewhere, we will provide you with resources and recommendations on how to receive US dollars in Nigeria.
WorldRemit is the cheapest provider for sending money to Nigeria from abroad, leaving you with the most money when receiving an incoming international transfer.
What You’ll Learn in This Guide
- 01. How do I receive money in Nigeria?
- 02. Is receiving money with traditional banks the best option?
- 03. Receiving payments with First Bank Nigeria
- 04. Receiving payments with the United Bank for Africa
- 05. Receiving payments with Zenith Bank
- 06. Receiving US dollars in Nigeria with money transfer services
- 07. Try WorldRemit to receive dollars in Nigeria
- 08. Try Remitly to receive dollars in Nigeria
- 09. Try Small World to receive international payments
Avoid the Currency Exchange Black Market
Black markets for currency exchange have developed in the cities of Nigeria as the US dollar has become more widely accepted in the country.
The best way to make an informed decision is to research and understand the mid-market rate ahead of time. This rate, which you can find on Google or XE.com, is the only real exchange rate and should be used to compare the rates being offered to you.
How Do I Receive US Dollars in Nigeria?
Many financial services are available to help you accept international payment in Nigeria from abroad. Since each of them comes with its advantages and disadvantages depending on the size of your remittance and the country that you are sending it from, let's take a look at the most common ways people receive dollars in Nigeria:
Option 1 — Bank Deposit
The most common way to receive money from overseas is via bank deposit, which takes place when the sender of a currency transfer makes a bank wire from their bank account to yours.
Bank deposit is a very secure method. All banks in Nigeria and most international money transfer services use this method to send money around the world. However, bank deposits can often get expensive if the sender uses the SWIFT network to wire the money overseas. Nearly all traditional banks use this network and it is common for them to charge correspondent bank fees for having middlemen banks conduct the transfer.
Data¹ from over a hundred thousand recent comparisons on Monito show that newer fintech companies that also offer bank deposit — particularly Remitly, Small World, and WorldRemit — tend to be cheaper on average for Nigerians sending money home from abroad.
Living in Nigeria?
You can open a US dollar bank account in Nigeria today to directly receive US dollars from abroad. Read our in-depth guide to learn more about how to open a dollar account today.
Option 2 — Cash Pickup
This method is recommended if the recipient wants paper cash. Senders to Nigeria often opt Remitly, WorldRemit, and Small World as the cheapest providers of cash pickup although traditional currency exchange providers like Western Union are also quite common.
Your US dollars can be tracked and securely delivered to your local pickup destination in Nigeria. To make sure you find the most convenient provider for you when sending dollars to Nigeria via cash pick-up, run a search on Monito's real-time comparison engine before you transfer, and select the 'Transfer to a cash pick-up location' tab on the results page:
Compare Cash Pick-up Providers
Option 3 — Mobile Wallets
Rather than using a bank account, many people choose to handle some or all of their financial services using a mobile wallet instead. Mobile wallets are used more like digital cash to pay merchants rather than as a bank account to save money. They are built with encryption technology, keeping your bank details and card information safe from strangers.
To receive money from abroad, you will need to use a mobile wallet in Nigeria that accepts US dollars. Popular mobile wallets include Wallets.Africa, Wise, and Skrill. Companies that work in the continent, like MFS Africa, also work with many money transfer services to support your mobile wallet.
Is Receiving Money With Traditional Banks the Best Option?
Nigerian banks generally outsource international remittance work to money transfer services. These digital money transfer services are specialists that offer very low fees. You can expect the following costs to come along with your remittance:
- Wire transfer fee: The receiver is charged no fee. Senders are charged a fee by the international money transfer service².
- Exchange rate margin: The exchange rate is set by the money transfer service provider.
Let's take a look at a few of Nigeria's largest banks to see what kind of partners these banks tend to do business with.
1 First Bank Nigeria (FBN)
FBN works with a wide range of services to get you money in Nigeria, including Western Union, MoneyGram, and WorldRemit. Here is their full list of services you may use with FBN.
2 United Bank for Africa (UBA)
Here is a glance at the international payment services you may encounter at UBA, which include WorldRemit, Small World, and Western Union:
3 Zenith Bank
Zenith Bank works with providers like Western Union, Azimo, and WorldRemit. Here is a list of their service partners:
Receiving US Dollars in Nigeria With Money Transfer Services
If you are receiving money from abroad in Nigeria, then your sender will likely use a money transfer service to get you your money. This money will enter your bank account in US dollars or naira, depending on your choice.
If you are sending US dollars from abroad to Nigeria, then your receiver will get US dollars too. In other words, the money will not transfer into Naira (NRN) upon arrival. These USD to USD transfers usually have a one-to-one exchange rate, meaning that you won’t lose money on hidden exchange rate margin fees.
To get a sense of how the top money transfer services compare to each other, take a look at WorldRemit, Remitly, and Small World below. These providers found on Monito are, among many others, often recommended as alternatives to banks, PayPal, and bureaux de change.
1 WorldRemit
WorldRemit is a UK-based digital remittance service that's one of the fastest and cheapest ways to send money internationally on Monito. In 2021, it ranked as one of the cheapest providers for remittances from the United States and South Africa to Nigeria.
The platform offers a variety of pay-in and pay-out options, including cash pick-up, bill payments, or even airtime top-up. It supports money transfers to over 130 countries worldwide.
Cost: WorldRemit’s fees depend on the amount, the payout method and where you are sending the money. In addition, WorldRemit does not disclose its exchange rate margin, so be sure to compare it to the market rate before completing your transfer.
Coverage: Available in Europe, North America, Africa, and Latin America, WorldRemit supports transfers to around 70 currencies on every continent, including USD.
For more information, see Monito’s full review of WorldRemit.
2 Remitly
Remitly is a US-based money transfer with fees and exchange rates that are usually very well-priced. Remitly has often been the best choice for individuals sending money to Nigeria from the United Kingdom, the United States, Australia, and Germany.
The platform offers various pay-in and pay-out options (including card payments, bank transfers, and cash services) and supports money transfers to over 85 countries worldwide.
Cost: Remitly’s fees are built into the exchange rate and typically range between 0.50% and 2.00% of the international money transfer value, depending on the currencies you are using. Remitly was the cheapest service on 20% of global comparisons on Monito between July 2020 and 2021.
Coverage: Available in Europe, North America, Singapore, and Australia, Remitly supports transfers to around 47 currencies on every continent.
For more information, see Monito’s full review of Remitly.
3 Small World
Small World is another UK-based money transfer and digital banking service that is trusted by 15 million customers worldwide. This service has been another cheap option for customers sending money to Nigeria from the United States and the United Kingdom.
Small World offers payout options by bank deposit, cash pick-up, airtime top-up, mobile wallet, cash home delivery, and prepaid card top-up. It supports money transfers in 90 different currencies.
Cost: Small World charges flat fees for their bank deposits that vary according to the size of the payment and the sending country. It also has fees built into the exchange rate, which range between 1% and 2% depending on the currency you are using. However, it excels when it comes to its pricing on transfers for cash pickup: Small World is the cheapest option in 43% of searches for cash pickup and is priced competitively in almost 90% of cases.
Coverage: Small World currently supports sending money in 90 currencies to their global network of over 250,000 cash pickup locations.
Take a look at our full review of Small World to learn more about their credibility and service.
Compare Money Transfers to Nigeria
References Used in This Guide
1. Remitly, WorldRemit, and Small World were the cheapest bank deposit services on Monito in December 2021 on a combined 86.6% of global searches.
2. FBN. Money Transfer. Accessed 18 December 2021.
See Monito's In-Depth Money Transfer Guides
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