How To Receive Money From Abroad in Nigeria (2024)

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In 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.

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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.

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:

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.

• FBN Money Transfer Partners

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:

• UBA Money Transfer Partners

3 Zenith Bank

Zenith Bank works with providers like Western Union, Azimo, and WorldRemit. Here is a list of their service partners:

• Zenith Bank Money Transfer 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.

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.

2.FBN. Money Transfer. Accessed 18 December 2021.

Why Trust Monito?

You’re probably all too familiar with the often outrageous cost of sending money abroad. After facing this frustration themselves back in 2013, co-founders François, Laurent, and Pascal launched a real-time comparison engine to compare the best money transfer services across the globe. Today, Monito’s award-winning comparisons, reviews, and guides are trusted by around 8 million people each year and our recommendations are backed by millions of pricing data points and dozens of expert tests — all allowing you to make the savviest decisions with confidence.

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