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The short answer
Yes. For a South African resident aged 18 or over, money sent to Nigeria for family or gifts uses the single discretionary allowance, which the Reserve Bank's manual dated 8 October 2026 sets at R2 million per calendar year, with no tax compliance status needed. Some older pages still say R1 million. Above it, the R10 million foreign investment allowance needs a SARS tax compliance status PIN.
For South African residents, money sent to family in Nigeria comes out of the single discretionary allowance (SDA), the yearly amount an adult resident may send abroad for any legal purpose without asking the Reserve Bank. The question most people have is the size of that allowance in 2026, because the figure on many bank and Reserve Bank pages is out of date.
The allowance in October 2026
The Reserve Bank's Currency and Exchanges Manual for Authorised Dealers, version 1.1.36 dated 8 October 2026, defines the single discretionary allowance as 'the R2 million allowance available to residents (natural persons) 18 years and older per calendar year'. The Reserve Bank's own Financial Surveillance FAQ still describes it as 'an overall limit of R1 million per calendar year', and Nedbank's outgoing payments page also refers to R1 million without supporting documents. The manual is the instrument banks work from and is the newer document, so we use R2 million, but ask your bank which figure its systems apply before a large transfer.
- Who has it
- Each South African resident aged 18 or over, separately. The FAQ says you may not use another person's allowance through a 'loan' or similar arrangement.
- What it covers
- 'Any legal purpose abroad (including for investment)', in the FAQ's words: gifts, family support, travel and investment.
- Period
- Calendar year, 1 January to 31 December.
- Paperwork
- No documentary evidence for the funds, except for travel outside the Common Monetary Area, where a ticket is needed.
- Proof of residence
- A green bar-coded South African ID or a Smart ID card; the bank records the ID number when it reports the payment.
Does money sent to Nigeria count?
Yes, for a resident. A transfer to a relative in Nigeria is a payment abroad for a legal purpose, so it uses up part of your SDA whether you send by bank SWIFT or through a licensed money transfer operator. The manual describes the Category Two authorised dealers in foreign exchange with limited authority (ADLAs), which offer remittances with external money transfer operators, as working within the 'prescribed single discretionary allowance of R2 million per applicant within the calendar year'. Holiday spending abroad comes out of the same allowance, so add it in if you travel to Nigeria in December.
When SARS tax compliance comes in
Above the SDA, a resident can use the foreign investment (capital) allowance of up to R10 million per calendar year. For that, the bank must check your tax compliance status using the SARS TCS PIN on eFiling, and the manual says banks 'should not transfer any amount' if the status shows non-compliance. Above R10 million, the bank applies to the Reserve Bank's Financial Surveillance Department for approval. Within the SDA itself, no tax compliance status is needed.
| Total sent abroad in the calendar year (resident adult) | What applies |
|---|---|
| Up to R2 million | SDA: no tax compliance status, no documents (except travel) |
| Above R2 million up to R10 million more | Foreign investment allowance: SARS tax compliance status PIN verified by the bank |
| Above that | Application to the Reserve Bank through your bank |
The table reflects the October 2026 manual. Tax points are information, not advice; the TCS process is a SARS matter.
If you are not a South African resident
The SDA belongs to residents. If you are a Nigerian working in South Africa on a permit, the manual treats you as a foreign national (a person from outside the Common Monetary Area temporarily resident in South Africa) and has a separate section for personal transfers by foreign nationals and immigrants. Our guide to foreign national limits explains this. Permanent residents with a green bar-coded or Smart ID should ask their bank how they are classed.
Worked example
Example only. A resident sends R6,000 a month to her parents in Lagos (R72,000 a year), pays R40,000 in school fees for a nephew and spends R30,000 on a December trip. Total: R142,000, well within a R2 million allowance, so no SARS tax compliance status is needed. If she also wanted to put R2.5 million into a property in Abuja that year, the amount above the allowance would need the tax compliance route. See buying property in Lagos from South Africa.
Keeping track during the year
Banks record each payment against your ID number, so the allowance is counted across all your banks and providers, not per bank. Keep a simple list of what you send each calendar year: date, amount, provider and reason. If you are near the limit in November, a December trip to Nigeria also comes out of the same allowance. If a provider refuses a payment because the allowance is used up, ask which figure it applied, since some pages still show R1 million.
Where Pryme fits
Recipients in Nigeria can hold naira in a Pryme account, with deposits held by a licensed Nigerian microfinance bank. You can open an account from South Africa too; the app shows the rate and the fee before you approve a transfer, and a verifiable statement can help if you need to show what you sent.
Questions people ask
What is the SDA limit in 2026?
The Reserve Bank manual dated 8 October 2026 defines it as R2 million per calendar year for adult residents. Some older pages still show R1 million, so confirm with your bank.
Do I need tax clearance to send money to Nigeria?
Not within the SDA. Above it, the foreign investment allowance needs a SARS tax compliance status PIN.
Can my spouse's allowance cover my transfers?
No. Each adult has their own allowance and the Reserve Bank says one person may not use another's.
Do foreign nationals get the SDA?
The SDA is for residents. Foreign nationals fall under a separate section of the exchange control manual.
Sources
- SARB: Currency and Exchanges Manual for Authorised Dealers (8 Oct 2026) · accessed Oct 2026
- South African Reserve Bank: Financial Surveillance FAQ · accessed Oct 2026
- Nedbank: Outgoing international payments · 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.