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The short answer
If you will spend the money in naira soon, receiving naira is simpler, as long as you can see the exchange rate the sender is getting. If the money is for a foreign-currency cost, such as school fees abroad or a trip, or you want to choose when to convert, receiving it in dollars, pounds or euros and converting yourself gives you more control.
Two ways the money can arrive
When a relative abroad sends you money, someone converts it to naira at some point. The question is who, when, and at what rate.
| Sent as naira | Sent as foreign currency | |
|---|---|---|
| Who converts | The sender's transfer provider | You, when you choose |
| Rate risk | Fixed at sending | Yours until you convert |
| Best for | Immediate spending in Nigeria | Foreign costs, or choosing your timing |
| What to check | The rate and fee the sender pays | Your account can receive that currency |
Under CBN rules on remittances, the way money is paid out in Nigeria depends on the channel used. Our guide on CBN rules on remittances explains how payouts work.
When naira makes sense
- The money is for this month's rent, food, school fees in Nigeria or medical bills.
- The sender's provider offers a transparent rate close to the market rate and a clear fee.
- You do not want to manage a foreign-currency balance.
Receiving naira also suits relatives at home who are less comfortable with apps, or who only need to pay local bills. For older parents, a fixed monthly naira amount arriving on the same date is often more useful than a larger, irregular foreign-currency sum they then have to convert themselves.
In this case, ask the sender to compare the total naira you will receive, not just the fee. A provider with a zero fee and a poor rate can cost more than one with a fee and a good rate. Read sending money to Nigeria: the real cost.
When foreign currency makes sense
- The money will pay a cost abroad: tuition, a visa fee, a flight, a foreign subscription.
- You are saving towards something priced in dollars or pounds, such as a relocation.
- You want to convert in stages rather than all at once.
- Several relatives contribute, and you want one balance to collect it before deciding.
Worked example
Example only, with invented rates. Ngozi's brother in Manchester sends £500 a month. Part covers their mother's upkeep in Enugu; part is a contribution to Ngozi's master's degree abroad next year.
| Option | What happens | Result |
|---|---|---|
| All in naira | £500 converted at ₦2,000 = ₦1,000,000 | Later, ₦600,000 is converted back to pounds for tuition at ₦2,100 = about £286 |
| Split | £200 as naira (₦400,000) for upkeep; £300 kept in pounds | £300 is still £300 when tuition is due |
Converting the tuition money into naira and back again cost Ngozi about £14 of every £300 in this example, before any fees. Keeping it in pounds avoided the round trip.
Agreeing the plan as a family
Much of the friction around money from abroad comes from unclear expectations rather than exchange rates. A short conversation, once, saves many tense calls later.
- Agree what each transfer is for: upkeep, a project, school fees, savings.
- Agree the currency for each purpose, and who converts.
- Agree a regular date, so the recipient can plan and the sender can budget.
- Share receipts for larger costs, such as hospital bills or building materials, so the sender can see where the money went.
Senders abroad also face their own exchange rate when they earn in pounds and send naira. Being clear about what the money needs to cover, in naira, helps them decide how much to send and when.
If the sender is building savings in Nigeria
Some relatives abroad send money not only for upkeep but to build their own savings or investments in Nigeria. Since 1 January 2025, a CBN framework allows non-resident Nigerians to open Non-Resident Nigerian Ordinary Accounts, for foreign earnings and personal needs, and Non-Resident Nigerian Investment Accounts, for investing in Nigerian markets. Foreign currency balances in these accounts can be repatriated without restriction. If the money is theirs rather than yours, it is usually cleaner for them to hold it in their own name than in a relative's account.
Tax and records
A diaspora tax guide published on the NiDCOM website states that genuine family remittances and gifts for upkeep are not treated as taxable income under the 2026 tax reforms. If you receive large regular sums, or money for a business or property, keep records showing the sender and purpose, and take advice on your own situation.
Protect against scams
Fraudsters sometimes impersonate relatives abroad, asking for 'urgent' transfers or for you to forward money. Confirm any unusual request by calling the relative on a number you already have. See money transfer scams targeting the diaspora.
Where Pryme fits
A Pryme Personal Account holds NGN, USD, GBP and EUR, with local account details for each currency, so a relative can send pounds that stay in pounds or naira that land as naira. When you choose to convert, Swap shows the rate first and the fee on its own line, and you approve. See multicurrency.
Questions people ask
Is it better to receive money from abroad in dollars or naira?
Naira if you will spend it in Nigeria soon and the sender gets a fair rate. Dollars or pounds if the money is for a foreign cost or you want to choose when to convert.
Is money from family abroad taxed in Nigeria?
A diaspora tax guide on the NiDCOM site says genuine family remittances and gifts for upkeep are not taxable income. Large or business-related sums are different; take advice.
Can I receive pounds in Nigeria?
Yes, if you have an account with pound account details. Otherwise the sender's provider or your bank converts it to naira.
Why is the naira amount I receive lower than expected?
Usually because of the exchange rate margin, not just the fee. Ask the sender to compare the total naira you receive across providers.
Sources
- Diaspora guide to Nigeria's 2026 tax reforms (NGEX, published on NiDCOM) · accessed Oct 2026
- CBN framework for Non-Resident Nigerian Ordinary and Investment Accounts (Mondaq) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.