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Part of the guideSending money to Nigeria: the real cost, explained
The short answer
The headline pound-to-naira rate is a reference price between banks; the rate you are offered includes the provider's margin, and is often lower than the headline. Measure any quote by multiplying your pounds by the reference rate, then comparing it with the naira that will actually arrive after fees. The gap, as a percentage, is your real cost, and it changes daily.
Search for the pound-to-naira rate and you will see one number. Open a transfer app and you will see another, usually lower. Neither is wrong; they measure different things. Knowing which is which is the quickest way to stop overpaying. This article explains the rate itself. For the full picture of fees, delivery and rules, see our guide to what sending money to Nigeria really costs.
Three rates you will see
- Mid-market rate
- The midpoint between the price at which banks buy and sell a currency on the wholesale market. It is what most search results and currency sites show. Nobody sending £300 is offered it; it is a benchmark.
- Official rate (NFEM)
- The rate on the Nigerian Foreign Exchange Market, the official market run under the Central Bank of Nigeria. The CBN publishes reference rates, including a selling rate for the pound. On 24 September 2026 it was about ₦1,758 per pound.
- Parallel or street rate
- The rate at bureaux and informal dealers. On 6 August 2026, one market report put the pound at about ₦1,837 officially and ₦1,902 on the street, a gap of roughly 3.5%.
Remittances through licensed transfer operators are paid in naira at a rate linked to the official market. Since Nigeria unified its exchange rates, the official and street rates have moved much closer together than they were in 2023, so a quote near the official rate is no longer giving away a large share of your money.
Why the pound rate is a cross rate
The naira trades mainly against the US dollar. The pound-to-naira rate is usually worked out from two other prices: pounds to dollars, and dollars to naira. That has two consequences. A move in sterling against the dollar changes your naira even when the naira itself is steady. And a provider can add a margin at either step, which is one reason quotes vary more for pounds and euros than for dollars.
Where the gap comes from
The difference between the headline and your rate is the provider's exchange-rate margin. Some providers charge a visible fee and a small margin; others advertise no fee and take a bigger margin. The World Bank, which surveys these costs, found an average margin of 0.73% and an average fee of £1.47 on £120 sent from the UK to Nigeria in Q3 2025. Banks are usually far more expensive: their global average total cost was 14.55% in Q1 2025.
Other things can widen the gap: paying by credit card, which your card issuer may treat as a cash advance; first-transfer offers that revert later; and sending to cash pickup, which tends to cost more than a bank deposit. A margin of 2% sounds small, but on £300 a month it is £72 a year, every year, which is why the rate deserves as much attention as the fee.
Worked example: four quotes for £500
Take the CBN pound selling rate of ₦1,758.36 as the reference. At that rate, £500 is worth ₦879,180. Here are four illustrative quotes, built to show how to compare them; they are not real offers.
| Quote | Fee | Rate offered | Naira that arrives | Real cost |
|---|---|---|---|---|
| A: fee plus small margin (0.73%) | £1.47 | ₦1,745.52 | ₦870,196 | 1.02% |
| B: "no fee", 2% margin | £0 | ₦1,723.19 | ₦861,596 | 2.00% |
| C: £3 fee, 0.5% margin | £3.00 | ₦1,749.57 | ₦869,535 | 1.10% |
| D: "no fee", 5% margin | £0 | ₦1,670.44 | ₦835,221 | 5.00% |
Quote B looks free and is nearly twice as expensive as A. Quote D, which also says "no fee", costs about ₦35,000 more than A on a single transfer. The method:
- Note the reference rate at the moment you compare.
- Multiply your pounds by it. That is the full value of your money.
- Note the naira each provider says will arrive, after all fees.
- Subtract, then divide by the full value. That percentage is the real cost.
- Compare on the same day and at the same time, because the rate moves.
What a good quote screen shows
Before you pay, a transparent provider should show you four things on one screen. If any is missing, ask for it or use another provider.
- The exchange rate applied to your transfer, to at least two decimal places.
- Every fee, including any charge for paying by card, shown separately from the rate.
- The exact naira amount the recipient will receive.
- How long the rate is held, and when the money should arrive.
With those four figures and a reference rate, the calculation above takes a minute.
When to convert
Nobody can predict short-term moves in the naira reliably. The pound fell from about ₦1,837 in early August 2026 to about ₦1,758 by late September, partly because the naira strengthened against the dollar over the same period, from about ₦1,365 to about ₦1,332. Moves of that size, around 4% in seven weeks, are larger than most providers' margins, which is why timing feels important.
Two habits work better than forecasting. One is to send on a regular date and accept the average over time. The other is to decide a target rate in advance and convert only when it is reached, as long as nothing urgent is waiting in Nigeria. Waiting for a better rate while school fees go unpaid is a false saving. Our articles on sending money from the UK and paying school fees from abroad show where timing matters most.
Where Pryme fits
Pryme's Swap is built for this comparison. It shows the rate before you confirm and holds it for about 30 seconds, and any fee appears on its own line. Compare the rate shown with the reference rate yourself, using the method above, so you see the full cost and not only the fee. "When it hits" lets you name a target rate and approve the swap when it is reached; whether it is available on your account is shown in the app. Money stays in the currency it arrived in, in your multicurrency account, until you decide; outside Nigeria, Pryme's activities are carried out through regulated partners.
For the rest of the picture, including how payouts work in Nigeria, see our full guide to sending money to Nigeria.
Questions people ask
Why is the pound-to-naira rate on Google different from my bank's?
Search results show a mid-market or reference rate between banks. Your bank or transfer provider adds a margin to that rate, and may charge a fee on top. The difference between the two is part of what you pay.
What is the official pound to naira rate?
The CBN publishes reference rates from the Nigerian Foreign Exchange Market, including a pound selling rate, which was about ₦1,758 on 24 September 2026. It changes every business day.
Is a "no fee" transfer to Nigeria really free?
Rarely. A provider with no fee usually earns from the exchange-rate margin instead. Compare the naira that arrives with the value of your pounds at the reference rate to see the real cost.
Should I wait for a better rate before sending money to Nigeria?
Only if nothing is urgent. Short-term moves are hard to predict; sending on a regular date, or setting a target rate in advance, works better for most people than trying to time the market.
Why do pound and euro rates to naira vary more than the dollar rate?
The naira trades mainly against the dollar, so pound and euro rates are cross rates built from two prices. Movements in sterling or the euro against the dollar, and margins at each step, add variation.
Sources
- Within Nigeria: Exchange rate today, 3 October 2026 (pound and euro official rates) · accessed Oct 2026
- Prime Business Africa: Dollar, pound rates in official window and parallel market (6 August 2026) · accessed Oct 2026
- TechEconomy: Dollar to naira exchange rate, 8 October 2026 · accessed Oct 2026
- Central Bank of Nigeria: Foreign Exchange Structure and Management · accessed Oct 2026
- World Bank Remittance Prices Worldwide: United Kingdom to Nigeria · accessed Oct 2026
- World Bank: Remittance Prices Worldwide, Issue Q1 2025 · accessed Oct 2026
- Kola King: CBN revised IMTO guidelines (January 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.