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The short answer
The real cost of a transfer to Nigeria is the transfer fee plus the exchange-rate margin: the gap between the mid-market rate and the rate you are given. Work out how much naira the recipient would get at the mid-market rate, subtract what they will actually get, convert the difference back at mid-market and add the fee. Dividing that total by what you paid gives the all-in percentage.
Two providers can quote the same fee and deliver very different amounts of naira. The difference is the exchange rate. Providers and banks say openly that this is part of how they earn: Barclays describes its rate as a mid-market reference rate plus an FX margin, and Sendwave says its exchange rate may include a small margin over the market rate.
The three numbers you need
- Mid-market rate
- The midpoint between buying and selling rates in the market at that moment. It is the benchmark, not a rate you can usually get.
- Quoted rate
- The rate the provider will apply to your transfer, shown before you pay.
- Fee
- Any fixed or percentage charge, shown separately.
For naira, the CBN publishes official exchange rates, and financial data sites and many apps show a live mid-market figure. Use one source consistently, and look at it at the same moment as your quote, because the rate moves.
The calculation, step by step
- Naira at mid-market = amount converted × mid-market rate.
- Naira actually received = amount converted × quoted rate (or the figure the provider shows).
- Margin cost in naira = step 1 minus step 2.
- Margin cost in your currency = step 3 ÷ mid-market rate.
- Total cost = margin cost + fee.
- All-in percentage = total cost ÷ total you pay × 100.
Worked example (illustrative figures, not today's rates)
You send £500 with a £2 fee charged on top, so you pay £502. Suppose the mid-market rate is ₦2,000 per pound and the provider quotes ₦1,960.
| Step | Calculation | Result |
|---|---|---|
| Naira at mid-market | 500 × 2,000 | ₦1,000,000 |
| Naira received | 500 × 1,960 | ₦980,000 |
| Margin in naira | 1,000,000 − 980,000 | ₦20,000 |
| Margin in pounds | 20,000 ÷ 2,000 | £10.00 |
| Total cost | £10.00 + £2.00 | £12.00 |
| All-in percentage | 12 ÷ 502 × 100 | about 2.4% |
The margin here is (2,000 − 1,960) ÷ 2,000 = 2%, five times the fee. A "£2 fee" transfer costs £12.
The quicker comparison
When comparing two providers for the same transfer, you can skip the mid-market rate entirely: enter the same amount in each, and compare the naira the recipient gets against the total you pay, including fees. Divide naira received by total paid for an "effective rate". The higher one is cheaper for that amount at that moment. Do this on the day; a comparison from last week tells you little.
When the fee is taken out of the amount
Some providers deduct the fee from what you send rather than adding it on top. Using the same illustrative rates, you pay £500, the £2 fee comes off first and £498 is converted at ₦1,960: 498 × 1,960 = ₦976,080. At mid-market, your full £500 would have bought ₦1,000,000. The shortfall is ₦23,920, which is £11.96 at mid-market, so the all-in cost is about 2.4% of £500. The result is close, but the naira figure is different, so always compare the amount the recipient receives, not only the rate.
When currency is converted twice
A bank wire from the UK to a Nigerian naira account may be converted from pounds to dollars by your bank, then from dollars to naira in Nigeria. Each conversion can carry its own margin, and the second one is often invisible to you until the money lands. Barclays, for instance, states a conversion charge of no greater than 2.75% for personal customers on payments it converts, before any conversion at the other end. If you must wire, ask your bank which currency it will send and who converts.
Things that change the answer
- Amount: many providers price differently by size. Lloyds, for instance, publishes a margin over wholesale that falls as amounts rise, starting at 3.55% for up to £10,000 on foreign currency it converts for incoming payments.
- Payment method: card, bank transfer and wallet funding can be priced differently. Remitly UK notes that payment method may affect speed and fees.
- Promotional rates: a better rate on a first transfer, often only up to a cap. See first-transfer promos.
- Bank charges on wires: intermediary deductions add a cost the quote may not show. See intermediary bank fees.
What a good disclosure looks like
In the US, federal remittance rules require providers to show, before you pay, the exchange rate, fees and taxes, and the amount to be delivered to the recipient. That last figure is what matters. Wherever you live, look for it before you approve, and screenshot it; if less arrives, see less naira than quoted.
Where Pryme fits
With Pryme, Swap shows the rate first and the fee on its own line before you approve, so you can run the calculation above on your actual numbers. See Swap and Send.
Questions people ask
What is an FX margin on a money transfer?
The difference between the mid-market exchange rate and the rate the provider gives you, kept by the provider as part of its price.
How do I calculate the real cost of sending money to Nigeria?
Add the fee to the margin cost: the naira you would get at mid-market minus the naira you actually get, converted back at mid-market.
Where do I find the mid-market rate for naira?
The CBN publishes official rates, and financial data sites show live figures. Check at the same time as your quote.
Is a lower fee always cheaper?
No. A provider with a lower fee and a worse rate can deliver less naira. Compare the naira received for the same amount paid.
Sources
- Barclays: International payments · accessed Oct 2026
- Sendwave: Send money from the US to Nigeria · accessed Oct 2026
- CBN: Monthly average exchange rates · accessed Oct 2026
- Lloyds Bank: Receive money from outside the UK · accessed Oct 2026
- Remitly UK: GBP to NGN pricing · accessed Oct 2026
- CFPB: What is a remittance transfer and what are my rights? · 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.