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The short answer
The real cost of sending money to Nigeria is the transfer fee plus the exchange-rate margin, measured against the mid-market rate. World Bank data puts the average total cost at about 2–3% from the UK and US through the main corridors in 2025, against a global bank average of 14.55%, so comparing the naira amount that arrives matters more than the advertised fee. Money sent through transfer operators is paid out in naira under CBN rules, usually into a Nigerian bank account within minutes.
How much money is sent to Nigeria
Nigeria is one of the largest recipients of remittances in the world and the largest in sub-Saharan Africa for most of the past two decades. World Bank figures put personal remittances to Nigeria at about $19.5 billion in 2023, roughly 35% of all remittances to sub-Saharan Africa. They rose to about $22.1 billion in 2024 and $22.8 billion in 2025, equal to about 7.8% of Nigeria's GDP.
Most of that money comes from people in the UK, the US, Canada and Europe supporting parents, paying school fees, covering rent or building a house. Because so much is sent, small differences in cost add up. A 3% difference on £300 a month is more than £100 a year that never reaches your family.
The market has also changed a great deal since 2023. Nigeria unified its exchange rates, the gap between the official and street rates narrowed, and the Central Bank of Nigeria (CBN) tightened the rules on how remittances are paid out. Advice written before 2024 is often out of date.
The real cost: the fee plus the exchange-rate margin
Every transfer has two costs, and only one of them is usually labelled as a fee.
- Transfer fee
- The fixed or percentage charge the provider shows you. Some advertise "no fee".
- Exchange-rate margin
- The difference between the rate you are given and the mid-market rate (the midpoint between buying and selling prices on the wholesale market). If the mid-market rate is ₦1,330 to the dollar and you are offered ₦1,300, the margin is about 2.3%, even if the fee is zero.
- Total cost
- Fee plus margin, as a percentage of what you send. This is the only number that lets you compare providers fairly.
The World Bank's Remittance Prices Worldwide database measures this total cost. The global average cost of sending the equivalent of $200 was 6.49% in the first quarter of 2025, and the average cost of sending money to sub-Saharan Africa was 8.78%, the highest of any region. The international target under the UN Sustainable Development Goals is 3%.
Costs into Nigeria from the main sending countries are lower than those regional averages, because these corridors are large and competitive. The table shows the most recent corridor averages published by the World Bank.
| Corridor | Amount measured | Average fee | Average FX margin | Average total cost | Period |
|---|---|---|---|---|---|
| UK to Nigeria | £120 (about $200) | £1.47 | 0.73% | 1.96% | Q3 2025 |
| US to Nigeria | $200 | $4.47 | 0.48% | 2.72% | Q3 2025 |
| Italy to Nigeria | €140 (about $200) | €4.36 | 1.44% | 4.55% | Q3 2025 |
| Italy to Nigeria | €345 (about $500) | €4.71 | 1.44% | 2.80% | Q3 2025 |
| Canada (to all countries) | C$ equivalent of $200 | n/a | n/a | 5.98% | Q1 2025 |
How you send matters as much as where you send from. In Q1 2025 the global average cost through banks was 14.55%, through money transfer operators 5.04%, and through digital-only money transfer operators 3.55%. Banks are rarely the cheapest way to send small amounts.
How to compare providers
The headline fee and the headline rate are both marketing. The question to ask is: how much naira will arrive, for the amount I am paying, including all charges?
- Check the mid-market rate for your currency against the naira at the moment you compare. The CBN publishes the official Nigerian Foreign Exchange Market (NFEM) rate; financial news sites carry it daily.
- Enter the same amount with each provider and note the amount the recipient gets in naira.
- Add any fee you pay on top, including card charges. Paying with a credit card can trigger a cash-advance fee from your card issuer.
- Divide the naira received by the mid-market rate to see what your money was worth on arrival. The difference from what you paid is your real cost.
- Repeat for a typical amount. Fixed fees weigh heavily on small transfers, so a provider that is cheap for £1,000 may be expensive for £50.
- Watch for first-transfer offers. A better rate on your first send often reverts afterwards.
Worked example: what arrives from £500, $500, C$500 and €500
The table applies the World Bank averages above to a 500-unit transfer and compares them with the global average cost of sending through a bank. It shows the value that reaches Nigeria in the sending currency, before conversion into naira. For the dollar row we also show naira at the NFEM rate of about ₦1,328 per dollar on 2 October 2026. Rates move daily, so use this to understand the gap, not as a quote.
| You send | Route (cost used) | Total cost | Value that arrives | In naira at ₦1,328/$ |
|---|---|---|---|---|
| £500 | UK–Nigeria average (1.96%) | £9.80 | £490.20 | n/a |
| £500 | Bank, global average (14.55%) | £72.75 | £427.25 | n/a |
| $500 | US–Nigeria average, $200 tier (2.72%) | $13.60 | $486.40 | about ₦646,000 |
| $500 | Bank, global average (14.55%) | $72.75 | $427.25 | about ₦567,500 |
| C$500 | Canada average, all destinations (5.98%) | C$29.90 | C$470.10 | n/a |
| C$500 | Bank, global average (14.55%) | C$72.75 | C$427.25 | n/a |
| €500 | Italy–Nigeria average, €345 tier (2.80%) | €14.00 | €486.00 | n/a |
| €500 | Bank, global average (14.55%) | €72.75 | €427.25 | n/a |
On $500, the difference between an average specialist provider and an average bank is close to ₦80,000 on a single transfer. Over a year of monthly transfers of the same size, it comes to roughly ₦940,000. The provider you choose matters more than almost any other decision in this guide.
Timing: when to convert
Because the naira floats, the rate you get depends on the day. Nobody can predict short-term moves reliably, so most people are better served by a habit than a forecast. Two habits work well. The first is to send on a regular date and accept the average rate over time. The second is to hold money in your own currency and convert when the rate reaches a level you have decided in advance, which some providers let you set as a target. What does not work is waiting for a much better rate while a bill in Nigeria goes unpaid.
Be careful with comparisons to the parallel market. Since 2024 the official and street rates have moved close together, so a provider quoting near the official rate is no longer giving away large amounts of value, as was the case in 2023.
Delivery methods and speed
Bank account
The most common and usually the cheapest option. The recipient needs a Nigerian bank account and its 10-digit NUBAN number. Most providers pay naira through Nigeria's instant payment system, so money often arrives within minutes once the provider has processed it. Under CBN rules, any payout above the equivalent of $200 must go into an account rather than be collected in cash.
Cash pickup
The recipient collects naira at an agent or bank branch with valid ID. It suits people without accounts, but it is limited to the equivalent of $200 per payout and usually costs more. Carrying cash also carries risk.
Mobile wallets
Mobile wallets are widely used inside Nigeria, but the CBN's 2024 guidelines for International Money Transfer Operators (IMTOs) removed mobile money wallets as a payout option for inbound remittances. If a provider offers wallet delivery, check how it is routed and that the provider is licensed.
How long it takes
Most transfers to Nigerian bank accounts through licensed digital providers arrive the same day, often within minutes. The CBN allows same-day settlement for IMTO transactions confirmed before noon. The first transfer usually takes longer because the provider checks your identity. Bank wires take one to three working days.
The rules in Nigeria: naira payouts, BVN and limits
Nigeria's rules on remittances have changed several times since 2023. As of October 2026 the position is as follows.
- July 2023: the CBN added naira as a payout option for remittances through approved IMTOs, priced at the official market rate.
- January 2024: revised IMTO guidelines limited IMTOs to inbound transfers and required payouts in naira, to bank accounts or as cash up to the equivalent of $200, at the official market rate.
- June 2024: banks and IMTOs were told to pay all diaspora remittances in naira, with access to naira liquidity through the CBN window.
- March 2026: a CBN circular confirmed that from 1 May 2026 IMTOs must pay remittances only in naira, through designated naira settlement accounts at authorised dealer banks.
In practice, money sent through a money transfer operator arrives in naira at a rate linked to the official market. Because the official and parallel rates are now close, this costs recipients far less than it did in 2023, when the gap was very large. If your family wants to hold dollars, the route is different: a transfer into their own domiciliary (foreign currency) account at a Nigerian bank, usually by bank wire. Check with their bank how it treats incoming personal transfers.
KYC on both sides
Every licensed provider in the UK, US, Canada and Europe must verify your identity, and will ask about the source of funds for larger or frequent transfers. This is required by anti-money laundering law. In Nigeria, every bank account is linked to a Bank Verification Number (BVN), and account limits rise with each level of verification. A recipient with a basic, low-tier account may find large transfers held until they upgrade.
Nigerians abroad can now get a BVN without travelling home. The Non-Resident BVN (NRBVN), launched by the CBN and NIBSS in 2025, is applied for online with a passport, proof of foreign address and a liveness check, for a fee of $50. It allows diaspora Nigerians to open Nigerian accounts remotely.
Sending larger amounts
Building a house, buying land or paying a year's rent in advance often means sending several thousand pounds or dollars. Expect your provider to ask where the money came from, such as payslips, savings statements or the sale of an asset, and to apply daily or monthly limits until you have been verified. In Nigeria, the recipient's account tier must allow the amount. For property, pay in stages against a written contract and documented progress, and pay a lawyer's or developer's company account rather than an individual. Keep every receipt: you may need to show the source of the money again if you later sell or bring it back.
Paying school fees, rent and bills directly
Many people send money so that someone else can pay a bill. Paying the bill directly is often safer and cheaper.
- School fees: ask the school for its official bank account, confirmed on letterhead or through its portal, and pay into it with the student's name and number as reference. Keep the receipt. Never pay school fees into a personal account because someone says the school account is "down".
- Rent: pay the landlord or agent's account directly, against a written tenancy agreement, and ask for a signed receipt for each payment.
- Utilities, airtime and TV: these can be paid online from a Nigerian account or app for a family member's meter or phone number, so the money is used for what it was meant for.
- Medical bills: hospitals usually have accounts and issue invoices. Paying the hospital directly avoids cash changing hands.
Scams to avoid
Remittance scams follow a few patterns. Knowing them is most of the protection.
- Changed account details. A message, apparently from a relative, school or landlord, says the account number has changed. Always confirm by calling a number you already have.
- Urgent requests from a "relative". A new number, a story about a lost phone and a pressing need. Ask a question only the real person would know.
- Romance and investment scams. Someone met online asks for money to travel, clear customs or release an investment. Do not send money to people you have not met.
- Unlicensed currency dealers. Offers of a much better rate if you pay a private person abroad, who will then "credit" naira in Nigeria. You have no protection if they disappear, and unlicensed dealing in FX is prohibited in Nigeria.
- Fake provider websites and apps. Download apps only from official stores and check the company is regulated in your country, for example on the FCA register in the UK.
If you think you have been scammed, contact your provider at once; transfers can sometimes be stopped before payout. Report it to the police and, in the UK, to Action Fraud, or in the US to the FTC.
Checklist before you send
- Check the mid-market rate for your currency against the naira today.
- Compare at least three licensed providers on the naira amount that will arrive, not the fee.
- Confirm the recipient's full name, bank and 10-digit account number, and that the name the bank shows matches.
- Check the recipient's account can receive the amount (BVN linked, verification tier high enough).
- For bills, pay the school, landlord or hospital directly and keep the receipt.
- Confirm any change of bank details by calling a number you already know.
- Send a small test amount to a new recipient first.
- Avoid paying by credit card unless you know there is no cash-advance fee.
- Keep records of every transfer, including the rate and fee, in case of a query.
- Review your provider every few months; rates and promotions change.
Where Pryme fits
Pryme is designed for people who live between currencies. Pryme Financial Ltd is a financial technology company, not a bank. Outside Nigeria, its activities are carried out through regulated partners. In Nigeria, naira deposits are held by Solid Allianze Microfinance Bank, licensed by the CBN and insured by the NDIC up to the applicable limit per depositor. A Pryme account can be opened from any country, so you can apply from wherever you live; Savings Boxes and credit remain naira-only.
- Hold before you convert. One multicurrency account holds GBP, USD, EUR and NGN, with a UK sort code and account number, US account and routing number, a euro IBAN and a Nigerian NUBAN. Money stays in the currency it arrived in, so you can keep pounds or dollars and convert when it suits you. For other currencies, such as Canadian dollars, use a provider that offers them; the comparison method above explains what to look for.
- See the fee before you agree. Swap shows the rate before you confirm and holds it for about 30 seconds. Any fee appears on its own line. As with any provider, compare the rate shown with the mid-market rate as well as the fee to see the full cost. Where available on your account, "When it hits" lets you set a target rate and approve when it is reached.
- Send and receive. Receive money into your own account details, and use Send to pay naira out; which accounts you can send to, any charge and the expected timing are shown in the app before you approve.
- Pay bills in Nigeria. Airtime, data, electricity and cable TV payments are a Nigeria-only, naira service.
- Security. Password plus authenticator app, no SMS codes, and a transaction PIN at the last step. See security.
Eva, the assistant in the app, prepares; nothing moves until you approve it. For more, read is my money safe in Nigeria and how to save in Nigeria.
Go deeper
- Sending money to Nigeria from the UKHow to send pounds to Nigeria from the UK: what it really costs, how fast it arrives, which firms are regulated, and what protection you have.
- Sending money to Nigeria from the USSending dollars to Nigeria from the US: average costs, the 1% federal remittance tax on cash-funded transfers since 2026, and your rights.
- Sending money to Nigeria from CanadaSending Canadian dollars to Nigeria: what transfers cost, how to check a provider with FINTRAC and the Bank of Canada, and how payouts arrive.
- Sending money to Nigeria from EuropeSending euros to Nigeria from Italy, Germany, Ireland, Spain and elsewhere in Europe: average costs, EU rules, checking a provider, and payouts.
- Why the pound-to-naira rate you get differs from the headlineWhy the pound-to-naira rate in your app is lower than the one in the news: mid-market, official and street rates, margins, and how to measure them.
- Paying school fees in Nigeria from abroadHow to pay a Nigerian school or university from the UK, US, Canada or Europe: pay the school directly in naira, use Remita, avoid scams, plan for the rate.
- Paying bills in Nigeria for family from abroadHow to pay electricity, airtime, data, TV, rent and medical bills in Nigeria for family from the UK, US, Canada or Europe, in naira and with a record.
- NRBVN: the BVN for Nigerians abroadThe Non-Resident BVN lets Nigerians abroad get a Bank Verification Number online. Who can apply, documents, the $50 fee, timing and what it is for.
- CBN rules on remittances: how money is paid out in NigeriaHow the Central Bank of Nigeria's rules decide how money sent from abroad is paid out: naira-only payouts, the $200 cash limit, and the May 2026 changes.
- Money transfer scams targeting the diasporaThe money transfer scams that target Nigerians abroad, how to spot them, what protection you have in the UK, US, Canada and Europe, and what to do fast.
Questions people ask
What is the cheapest way to send money to Nigeria from the UK?
Usually a licensed digital money transfer provider paying into a Nigerian bank account. The World Bank's average total cost for the UK to Nigeria corridor was 1.96% in Q3 2025, while banks globally averaged 14.55%. Compare the naira amount that arrives, not the advertised fee.
Can my family in Nigeria receive dollars instead of naira?
Not through money transfer operators. Under CBN rules, confirmed again for 1 May 2026, remittances through IMTOs are paid out in naira at a rate linked to the official market. To receive dollars, your family needs a domiciliary account at a Nigerian bank and a direct bank transfer into it.
How long does it take to send money to Nigeria?
Most transfers through licensed digital providers to Nigerian bank accounts arrive the same day, often within minutes. The first transfer can take longer while your identity is checked. Bank wires typically take one to three working days.
What exchange rate should I expect when sending money to Nigeria?
Providers price off the official Nigerian Foreign Exchange Market (NFEM) rate, which was about ₦1,328 per US dollar on 2 October 2026. Compare each provider's rate with the mid-market rate on the day to see their margin.
Does the recipient need a BVN to receive money in Nigeria?
Yes. Every Nigerian bank account is linked to a Bank Verification Number, and higher-tier accounts can receive larger amounts. Cash pickup is limited to the equivalent of $200 and requires valid ID.
How much does it really cost to send $500 to Nigeria?
Using the World Bank's Q3 2025 US to Nigeria average of 2.72% (measured on $200), about $13.60 of $500 goes in fees and margin. At the global bank average of 14.55%, the cost would be about $72.75. The difference is roughly ₦80,000 at October 2026 rates.
Can Nigerians abroad open a Nigerian bank account?
Yes. The Non-Resident BVN, launched by the CBN and NIBSS in 2025, lets Nigerians abroad get a BVN online with a passport and proof of foreign address, for a $50 fee. With it they can open Nigerian accounts remotely, including domiciliary accounts.
How do I pay school fees in Nigeria from abroad?
Pay the school's official account directly, confirmed through the school itself, with the student's name and number as the reference. Keep the receipt. Never pay into a personal account because someone says the school's account has changed.
Sources
- World Bank: Personal remittances, received (current US$) · accessed Oct 2026
- Intelpoint: Personal remittance inflows to Nigeria, 2024–2025 (World Bank data) · accessed Oct 2026
- AllAfrica: Nigeria accounted for 35% of sub-Saharan Africa's remittances in 2023 (World Bank) · accessed Oct 2026
- World Bank SDG metadata: Indicator 10.c.1 (remittance costs) · accessed Oct 2026
- World Bank: Remittance Prices Worldwide, Issue Q1 2025 · accessed Oct 2026
- World Bank Remittance Prices Worldwide: United Kingdom to Nigeria · accessed Oct 2026
- World Bank Remittance Prices Worldwide: United States to Nigeria · accessed Oct 2026
- World Bank Remittance Prices Worldwide: Italy to Nigeria · accessed Oct 2026
- TechEconomy: Dollar to naira exchange rate, 2 October 2026 · accessed Oct 2026
- Central Bank of Nigeria: Foreign Exchange Structure and Management · accessed Oct 2026
- ICIR: CBN circular adding naira payout for diaspora remittances (July 2023) · accessed Oct 2026
- Kola King: CBN revised IMTO guidelines (Jan 2024) · accessed Oct 2026
- Kola King: CBN orders banks and IMTOs to settle diaspora remittances in naira (June 2024) · accessed Oct 2026
- AllAfrica: CBN bans foreign currency payments for diaspora remittances from 1 May 2026 · accessed Oct 2026
- Prime Business Africa: CBN orders naira-only payout for diaspora remittances from May 2026 · accessed Oct 2026
- Nairametrics: How the CBN diaspora NRBVN works (May 2025) · accessed Oct 2026
- Mondaq: CBN revised guidelines for Nigeria's foreign exchange market · 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.