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The short answer
Invoicing a Nigerian client in naira makes it easy for them to pay but leaves you carrying the risk that the naira weakens before you convert; invoicing in Canadian dollars moves that risk to the client but makes payment harder, because they must buy a currency that is not commonly traded in Nigeria. Many freelancers settle on US dollars as a middle route. Whatever you choose, the CRA wants the income in Canadian dollars at a rate that meets its rules.
The choice is about who carries the currency risk
An invoice fixes an amount in one currency. Whoever has to convert later carries the risk that the rate moves in between. With a Nigerian client, that question matters more than with a client in the US or UK, because the naira has moved sharply against the Canadian dollar in recent years and the gap between invoice date and payment date with Nigerian corporates is often 30 days or more.
| Invoice currency | Who carries the rate risk | How easy for the client | How it reaches you |
|---|---|---|---|
| Naira | You | Easiest: a local transfer from their Nigerian account | Into a naira account you control, then you convert |
| Canadian dollars | The client | Hardest: they must buy CAD and send an international transfer | Into your Canadian account, less bank charges |
| US dollars | Shared: you carry USD to CAD, they carry naira to USD | Moderate: many Nigerian firms hold or can buy dollars | Into a USD account, then you convert to CAD |
Worked example: the same job, two invoices
Example only, with made-up exchange rates. You agree a design project worth CA$3,000. On the invoice date the rate is ₦1,000 to CA$1. The client pays 45 days later, by which time the naira has weakened to ₦1,100 to CA$1.
| Invoice in naira | Invoice in CAD | |
|---|---|---|
| Amount on invoice | ₦3,000,000 | CA$3,000 |
| What the client pays | ₦3,000,000 | ₦3,300,000 worth of CAD at ₦1,100 |
| What you end up with in CAD | CA$2,727.27 (₦3,000,000 / 1,100) | CA$3,000, less any bank charges |
| Difference | You lose CA$272.73 | Client pays ₦300,000 more |
The example also works the other way: if the naira strengthened, the naira invoice would leave you better off. The point is not that one choice always wins, but that one party is exposed and you should decide which, on purpose.
How each choice affects actually getting paid
Naira invoices
You need a naira account that can receive a local transfer, and a way to convert naira when you want Canadian dollars. Payment is usually fast once the client approves it. The risks are the conversion cost you pay later and the rate move while you wait. Some freelancers keep part of their naira earnings in naira for family or trips home, which reduces how much they need to convert.
CAD or USD invoices
The client has to source foreign currency and send an international transfer. That adds their bank's process, documentation and charges, and it can add days. Agree in the contract who pays transfer charges; on international wires, intermediary banks can take a deduction so the amount that arrives is less than the invoice. If the client cannot easily buy CAD, a US dollar invoice is often the practical compromise.
Withholding tax changes the number either way
A Nigerian company paying a non-resident for professional, consultancy, management or technical services is generally expected to withhold 10% under the Deduction of Tax at Source (Withholding) Regulations 2024, according to PwC's Nigeria summary reviewed 29 May 2026. That applies whatever currency you invoice in. Decide before you quote whether your price is gross (you absorb the deduction) or net (the client grosses up), and ask for the withholding receipt. Our guide to claiming Nigerian withholding tax in Canada explains the credit.
The CRA side: conversion is your job, not the client's
However you invoice, income on your Canadian return has to be in Canadian dollars. The CRA's folio on reporting currency (S5-F4-C1) sets the Bank of Canada rate for the day the amount arises as the default. The Bank of Canada does not publish a naira rate, so naira invoices need an alternative rate source that meets the CRA's conditions. Invoicing in USD avoids that problem, because the Bank of Canada does publish a US dollar rate. See which exchange rate to use for naira income.
What to put in the contract
- the invoice currency and, if you price in one currency and bill in another, the rate source and the date it is taken;
- payment terms in days, and what happens if payment is late;
- who bears bank and transfer charges;
- whether the fee is gross or net of Nigerian withholding tax, and that the client will send the withholding receipt;
- the account details payment goes to, and that you will never change them by email alone.
For more on terms, see pricing services for Nigerian clients.
Where Pryme fits
A Pryme Business Account can be opened from Canada and holds naira, US dollars, pounds and euros with local account details for each, so a Nigerian client can pay a naira invoice by local transfer or a dollar invoice into a USD balance. Money stays in the currency it arrived in until you convert with Swap, which shows the rate and the fee before you approve. Invoicing and the multicurrency business account pages explain the details. Pryme does not hold Canadian dollars, so moving money into your Canadian bank is a separate step.
Questions people ask
Should I invoice my Nigerian client in naira or dollars?
Naira is easiest for the client but leaves you with the currency risk; CAD or USD moves that risk to them. Many freelancers use USD as a compromise because Nigerian firms can source it more easily than CAD.
Who pays bank charges on an international transfer from Nigeria?
Whoever the contract says. Write it in, because intermediary banks can deduct charges so less than the invoice arrives.
Does my Nigerian client have to deduct withholding tax?
A Nigerian company paying a non-resident for professional or consultancy services is generally expected to withhold 10% under the 2024 regulations, per PwC's May 2026 summary. Check for changes under the 2025 tax laws.
What exchange rate do I use for CRA if I invoice in naira?
The CRA default is the Bank of Canada daily rate, but there is no Bank of Canada naira rate, so you need an alternative source that meets the CRA's conditions and use it consistently.
Sources
- CRA: Income Tax Folio S5-F4-C1, Income tax reporting currency (updated 27 Jun 2024) · accessed Oct 2026
- Bank of Canada: Daily exchange rates (table dated 23 Oct 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · 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.