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The short answer
You can post a Canadian bank draft to someone in Nigeria, and some Nigerian banks still take foreign-currency drafts and cheques into domiciliary accounts. But a draft drawn on a Canadian bank cannot clear through Nigeria's domestic clearing system, so the Nigerian bank has to collect the money from Canada, which takes far longer than a wire or app transfer and carries charges the receiving bank sets. For most family payments a traceable electronic transfer is the better choice.
What a bank draft is, and why Nigerians in Canada still ask
A bank draft is a cheque that your Canadian bank issues and guarantees itself. You pay the bank, it debits your account and prints an instrument payable to the person you name. Inside Canada drafts are still in everyday use: the Nigeria High Commission in Ottawa, for example, asks for its passport admin, legalisation and emergency travel certificate fees by money order or bank draft. Because the instrument feels familiar, many people assume they can post one home to a parent or a school the same way.
The draft can be posted. The question is what happens when it lands in Nigeria, and that is where the problems start.
What happens to a Canadian draft at a Nigerian bank
Nigeria's paper clearing runs through the Nigeria Bulk Clearing System for naira instruments drawn on Nigerian banks. Under the rules that took effect on 1 September 2018, a paper instrument presented there is treated as paid by 10pm on the next working day (T+1) unless it is returned. That timetable covers Nigerian cheques. A draft drawn on a bank in Toronto or Calgary is not a Nigerian instrument, so it cannot be presented through that system at all.
Instead, the Nigerian bank has to send the draft back to the Canadian bank that issued it, or through a correspondent, and wait to be paid. Banks usually call this collection. The receiving bank decides whether it will accept the instrument, how long it holds the value and what it charges. No CBN page we opened sets a clearing time or a fee for foreign drafts, so treat any figure you hear as the bank's own policy and ask for it in writing.
Which account the draft can go into
A draft in Canadian or US dollars needs a home that can hold foreign currency. GTBank's own domiciliary account page, for instance, lists travellers' cheques and foreign-currency cheques among the inflows a domiciliary account accepts. Few Nigerian banks hold Canadian dollar accounts, so a CAD draft may have to be converted, which adds an exchange cost on top of the collection charge. Ask the receiver's bank before you buy the draft whether it will take a CAD or a USD instrument.
Why wires and apps replaced drafts
| Point | Posted bank draft | Wire or remittance app |
|---|---|---|
| Time to usable money | Postage plus collection; often weeks | Usually hours to a few days |
| Tracking | Courier tracking for the envelope only | Reference number; Swift wires carry a UETR |
| Loss or theft | Draft must be stopped and reissued | No paper to lose |
| Cost visibility | Receiving bank's collection charge known late | Fee and rate shown before you send |
| Currency on arrival | Depends on account type | Apps pay naira; wires can go to a USD domiciliary account |
Electronic payments also carry their own trail. Every Swift payment carries a Unique End-to-end Transaction Reference (UETR), which lets any bank in the chain locate the payment. A posted draft has no equivalent once it leaves your hands.
There is a regulatory reason too. Since the CBN's IMTO guidelines of January 2024, money transfer operators pay Nigerian receivers only in naira, either into a bank account or as cash, and a CBN circular of 24 March 2026, effective 1 May 2026, routes those payouts through naira settlement accounts at authorised dealer banks. Apps are now built around that naira payout, which is why they are quick for family support. If the receiver needs dollars, a bank wire to a domiciliary account is the usual route, not a draft.
If you still decide to post one
- Ask the receiver's Nigerian bank, in writing, whether it accepts drafts drawn on Canadian banks, in which currency, how long collection takes and what it charges.
- Have the draft made out in the receiver's exact name as it appears on their Nigerian account.
- Keep a copy of the draft and your bank's purchase receipt; you will need the draft number to stop it if it goes missing.
- Use a tracked courier service, not ordinary post.
- If the value is CAD 10,000 or more, read CBSA's memorandum D19-14-1: currency and monetary instruments of that value sent by mail or courier must be reported on form E667, and the memo explains which instruments count.
- Agree with the receiver that they will not hand the draft to anyone offering to cash it for them.
What to use instead
For naira for family, a regulated remittance app or your bank's international transfer is quicker and traceable. Our guides to sending a Canadian bank wire to Nigeria and to sending US dollars to a domiciliary account walk through each route. If the money is for a fee that must be paid to an institution in Nigeria, see the Ledger's guide to paying school fees in Nigeria from abroad.
Where Pryme fits
A Pryme account can be opened from Canada and holds NGN, USD, GBP and EUR, each with local account details, so money can stay in dollars until you choose to convert it with Swap. When you send to Nigeria, the app shows the rate and the fee before you approve. Naira deposits are held by a licensed Nigerian microfinance bank; outside Nigeria, Pryme's activities are carried out through regulated partners.
Questions people ask
Will a Nigerian bank cash a Canadian bank draft?
Some will accept a foreign-currency draft into a domiciliary account, but it is sent back to Canada for collection, so the value arrives much later than a transfer. Ask the bank first; acceptance, timing and charges are its own policy.
How long does a Canadian draft take to clear in Nigeria?
There is no published CBN timetable for foreign drafts. Nigeria's T+1 paper clearing applies to naira instruments drawn on Nigerian banks, not to drafts drawn on Canadian banks.
Is a bank draft safer than an app transfer?
It is guaranteed by your bank, but the paper can be lost, stolen or delayed in the post, and you have no payment reference to trace once it leaves you. An electronic transfer is easier to follow.
Do I have to declare a bank draft I post to Nigeria?
CBSA requires a report on form E667 for currency or monetary instruments of CAD 10,000 or more sent by mail or courier. Memorandum D19-14-1 sets out which instruments are covered.
Sources
- BusinessDay: CBN gives September 1 date for revised clearing rules (2018) · accessed Oct 2026
- GTBank: Domiciliary accounts (undated page) · accessed Oct 2026
- Swift: What is a UETR? (undated page) · accessed Oct 2026
- TheCable: Banks to pay IMTO dollar transactions in naira after CBN directive (13 Feb 2024) · accessed Oct 2026
- Udo Udoma & Belo-Osagie: CBN directive to IMTOs on routing remittances (Mar 2026) · accessed Oct 2026
- CBSA: Memorandum D19-14-1, Cross-border currency and monetary instruments reporting (3 Sep 2024) · 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.