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Part of the guideDoing business with Africa: paying and getting paid in Nigeria
The short answer
Before paying a Nigerian company, confirm its registration and directors with the Corporate Affairs Commission (CAC), identify its beneficial owners, screen the company and its owners against the sanctions lists that apply to you, and check that the bank account you are paying is in the company's exact registered name. Add a tax ID check, any sector licence, and a call-back on a number you already hold before the first payment or any change of bank details.
Most losses on cross-border payments to Nigeria do not come from the FX market or tax. They come from paying the wrong party: a company that does not exist, a real company impersonated by a fraudster, or the right company paid into the wrong account. The checks below take an afternoon and cost little. For the wider process of paying Nigerian suppliers, see the parent guide on doing business with Nigeria and Africa.
The seven checks
- Registration with the CAC. The Corporate Affairs Commission keeps Nigeria's companies register and offers a public search. Ask the counterparty for its exact registered name and registration (RC) number, then confirm that the company exists, is active, and that the address and directors match what you were told. Ask for the certificate of incorporation and recent filings as well, and compare them with the search.
- Beneficial owners. Ask who owns and controls the company, directly or through other companies. Nigeria's beneficial ownership register became operational as part of the reforms that took it off the FATF grey list in October 2025, so a well-run Nigerian company should be able to show its declared owners.
- Sanctions screening. Screen the company, its directors and its owners against the lists that apply to you: the UK's OFSI consolidated list, the US OFAC Specially Designated Nationals list, and EU and UN lists. OFAC designated 27 Nigerian individuals, businesses and groups in 2026, including three bureaux de change, under terrorism and cyber programmes.
- Tax ID. Ask for the company's tax identification number from the Nigeria Revenue Service. Legitimate Nigerian businesses are registered, and a company that cannot show one is a warning sign.
- Bank account name. Nigerian bank accounts carry a 10-digit NUBAN, and Nigerian banks return the registered account name for it. The name must match the company's registered name. For a foreign currency wire, ask the counterparty's bank to confirm the account name in writing or use a provider that validates it.
- Sector licences. If the company handles money, insurance, healthcare, oil and gas or other regulated activity, check the relevant regulator's public register. For financial firms, that is usually the Central Bank of Nigeria.
- A real conversation. Speak to a named director by video or phone on a number you found independently, not one in the email. For large orders, ask for trade references or arrange a site visit.
Red flags
| What you see | Why it matters |
|---|---|
| The bank account is in a person's name, or a different company's name | You may be paying someone other than your counterparty, and you lose the link to the contract |
| A late request to change bank details, by email | The most common invoice fraud pattern; email accounts are often compromised |
| Pressure to pay quickly, or a discount for paying today | Urgency is used to stop you checking |
| An offer to settle at a street exchange rate, or through a bureau de change | Nigerian rules prohibit dealing with unlicensed FX intermediaries, and some BDCs are on sanctions lists |
| Registered address is a residential flat or cannot be found | Not always fraud, but worth a closer look for a supposed manufacturer |
| Directors or owners refuse to be identified | You cannot complete sanctions screening or due diligence |
A worked example: a $60,000 order
A Canadian food importer agrees to buy $60,000 of shea butter from a Kano processor, with 30% up front. The figures are illustrative.
- The importer checks the CAC register. The company exists, is active and its two directors match the people on the video call.
- The directors declare one beneficial owner. All three names clear sanctions screening.
- The proforma invoice asks for the $18,000 deposit to go to a domiciliary account. The bank confirms the account name is the processor's registered name. The importer sends a $100 test payment, then the balance of the deposit.
- Two weeks later an email asks for the final $42,000 to go to a new account "for tax reasons". The importer calls the director on the number it already holds. The director knows nothing of it: the email account had been compromised.
- The importer pays the original account. The checks took about three hours. The payment it avoided was $42,000.
Making the checks routine
One-off checks protect one payment. A process protects every one.
- Keep a supplier file with the CAC search, ownership declaration, screening result, tax ID and the date bank details were confirmed.
- Re-screen periodically. Sanctions lists change. Re-screen existing suppliers at least yearly and before large payments.
- Lock bank details. Changes need a call-back to a known number and a second approver.
- Use two approvers above a set amount, so no single person can be rushed into a payment.
- Pay companies, not people. Only pay accounts in the counterparty's registered name.
If you have already paid the wrong account
Act within hours, not days. Ask your bank to recall the payment and to contact the receiving bank, give it the transaction reference and the evidence of fraud, and report the incident to the police or fraud reporting service in your country. Tell the genuine supplier, because its email system has probably been compromised, and review which of your own controls failed. Recovery is far more likely when the receiving bank is alerted before the money moves on.
Nigeria's exit from the FATF and EU high-risk lists means you no longer need enhanced due diligence just because a counterparty is Nigerian, but these checks remain your own responsibility; see Nigeria and the FATF grey list. Once a supplier is verified, paying Nigerian contractors and suppliers from the UK covers the payment routes, and the Nigeria business payments guide has a full pre-payment checklist.
Where Pryme fits
Bulk payouts validate every Nigerian account name before you approve. Whichever provider you use, require a second named approver above a set amount and confirm any change to bank details by phone; see how Pryme approaches security. Pryme's business agents, built and certified by Pryme Intelligence, a separate company, prepare work inside a mandate you set; above it a person decides, and nothing moves without approval. Pryme Financial Ltd is a technology company, not a bank. In Nigeria, naira deposits are held by Solid Allianze Microfinance Bank Ltd, licensed by the CBN and insured by the NDIC up to the applicable limit; outside Nigeria, activities are carried out through regulated partners.
For company identity, rely on a CAC search and, on a large contract, legal due diligence; the steps above explain what to look for. A payment tool's job is to make the payment step harder to get wrong.
Questions people ask
How can I check if a Nigerian company is registered?
Search the Corporate Affairs Commission's public register using the company's exact name or RC number. Confirm it is active and that its directors and address match what you were told, and ask for the certificate of incorporation.
How do I find the owners of a Nigerian company?
Ask the company for its beneficial ownership declaration and compare it with its CAC filings. Nigeria operates a beneficial ownership register, which was one of the reforms cited when it left the FATF grey list.
How do I know a Nigerian bank account belongs to the company?
Nigerian banks return the registered account name for each 10-digit NUBAN. Check that it matches the company's registered name exactly, send a small test payment, and confirm receipt by phone.
Are Nigerian companies on sanctions lists?
Some are. OFAC designated 27 Nigerian individuals, businesses and groups in 2026, including bureaux de change. Screen every counterparty and its owners against the lists that apply to you.
What should I do if a Nigerian supplier changes its bank details?
Do not act on an email alone. Call a director on a number you already hold, confirm the new account name matches the registered company, and have a second person approve the change.
Sources
- ALN: Nigeria removed from FATF grey list · accessed Oct 2026
- Afriwise: Nigeria's exit from the grey list: implications for businesses · accessed Oct 2026
- Legit.ng: OFAC designations of Nigerian individuals and firms (Sept 2026) · accessed Oct 2026
- Mondaq: CBN revised guidelines for Nigeria's foreign exchange market · accessed Oct 2026
- EY: Tax registration for non-resident companies in Nigeria (Feb 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.