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The short answer
Naira cannot be paid into an Australian bank account; a Nigerian client pays it into a naira account in Nigeria, which you then hold or convert. For Australian tax, the ATO requires all foreign income to be converted to Australian dollars, using the rates its translation rules allow or an average rate from its published rates. The timing of your own later conversion to AUD does not change the income you declare, but it can create a separate foreign exchange gain or loss.
Many Nigerian clients can only pay in naira. Under the CBN's 2026 Foreign Exchange Manual, as TheCable reported on 3 June 2026, transactions between Nigerian entities within Nigeria are priced and settled in naira, and while a company can pay a foreign supplier in foreign currency, buying that currency takes time and paperwork. Accepting naira can win you the work. This article covers where the naira lands, whether to hold or convert it, and how to value it for the ATO.
Where the naira goes
Your options are a naira account in your own name with a Nigerian bank, or a multicurrency account that holds NGN and gives you Nigerian account details. To open a Nigerian bank account from abroad you generally need a BVN, which Nigerians abroad can get through the NRBVN route, explained in NRBVN: the BVN for Nigerians abroad. Whichever you choose, the account should be in your name, not a relative's, so the payment trail matches your invoices.
Hold or convert?
| Hold naira | Convert soon after payment | |
|---|---|---|
| Suits | Spending in Nigeria: family support, school fees, a building project, Naira savings | Rent and bills in Australia |
| Main risk | The naira's value against AUD can fall while you hold it | You convert at whatever rate applies that day |
| Cost | No conversion cost until you convert | A transfer fee and an exchange margin against the mid-market rate |
| Tax | Income declared at its AUD value when earned; later movement may be a forex gain or loss | Same income figure; any difference between the earned value and the converted amount may be a forex gain or loss |
If you do not need the money in Nigeria, the main question is how long you are willing to carry exchange-rate risk. See naira devaluation risk for how that risk has played out, and converting naira savings to AUD for the conversion routes.
How the ATO values naira income
The ATO's page for Australian residents (last updated 15 June 2026) says: "You must convert all foreign income, deductions and tax offsets to Australian dollars in your tax return." It gives two ways:
- the exchange rate in effect at the times set by its translation (conversion) rules, or
- an average rate, based on the daily and monthly rates the ATO publishes monthly on its foreign exchange rates pages.
The ATO also provides a foreign income conversion calculator. Business income and consultancy fees from overseas clients are declared "as if it were earned in Australia", so a naira invoice is ordinary business income once valued in AUD. Pick a method, apply it to every naira receipt, and note it in your records so a later query is easy to answer. The ATO's Australians doing business overseas page, a 2016 page, adds that tax treatment can depend on factors such as whether activities are carried out in a listed country, which is a reason to keep foreign-income questions with a tax agent.
Worked example
Example only, with rates invented for the arithmetic. Bisi, a resident sole trader in Adelaide, is paid ₦1,500,000 for a brand project. Using the rate she applies under the ATO's rules, 1 AUD = ₦1,000, so she records A$1,500 of business income. She holds the naira for two months, then converts at 1 AUD = ₦1,071 and receives about A$1,400.56 before fees. Her income stays A$1,500; the shortfall of about A$99 is a currency movement to be treated under the forex rules, not a reduction in her fee income. Her tax agent advises how that difference is reported.
Getting the naira out of Nigeria later
Naira reaches Australia only after it has been converted, by a bank or another licensed channel. If you move naira into US dollars first, the CBN's 2026 FX Manual, as reported by TheCable, allows domiciliary account holders telegraphic transfers of up to $10,000 a day; TheNigeriaLawyer described that figure as applying to something slightly different, so ask the bank before planning a large move. Conversion has two costs: any transfer fee, and the margin between the rate you are given and the mid-market rate. Compare the AUD you will actually receive, not the headline rate, and check the cost on the day, because both move.
Timing is the other lever. Converting each payment as it arrives smooths the rate over the year. Waiting for a better rate is a bet on the naira, which some freelancers accept for money they will spend in Nigeria anyway and avoid for money they need for rent in Australia.
Records to keep
- The invoice in naira and the date it was paid.
- The account statement showing the naira arriving.
- The rate and method used to value it in AUD.
- Any conversion receipt showing the rate, the fee and the AUD received.
- Any Nigerian withholding tax receipt, if the client deducted tax.
Where Pryme fits
A Pryme Business Account can be opened from Australia and gives you Nigerian naira account details, so a client pays you as it would pay any Nigerian supplier. Money stays in naira until you choose to convert with Swap, which shows the rate and the fee before you approve. Pryme holds NGN, USD, GBP and EUR, not AUD, so the last step to your Australian bank is a transfer you choose. Statements can be issued as verifiable documents through VerifyDoc.ai for your records.
Questions people ask
Can a Nigerian client pay naira into my Australian bank?
No. Naira is paid into a naira account in Nigeria; it reaches Australia only after it is converted, through a bank or another licensed channel.
What exchange rate do I use for the ATO?
The ATO says you may use the rate set by its translation rules or an average rate based on the rates it publishes monthly, and it offers a foreign income conversion calculator.
Do I pay tax when I convert naira to AUD later?
Your fee income is fixed at its AUD value when you earned it. A later gain or loss from the currency moving may be treated separately under the forex rules; ask a tax agent how to report it.
Is it safer to ask for USD instead?
It moves the currency risk away from naira, but many Nigerian clients find naira easier to pay. See our guide on quoting in USD, AUD or naira.
Sources
- ATO: Australian resident for tax purposes, foreign and worldwide income (last updated 15 Jun 2026) · accessed Oct 2026
- ATO: Australians doing business overseas (last updated 16 Feb 2016) · accessed Oct 2026
- TheCable: 7 things to know about CBN's new FX manual (3 Jun 2026) · accessed Oct 2026
- TheNigeriaLawyer: CBN grants domiciliary account holders unrestricted access to dollar balances (2 Jun 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.