AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
You can pay cash for a Western Union transfer to Nigeria at a US agent location, or start it in the app and pay at an agent. Since 1 January 2026 a 1% federal excise tax applies to US remittance transfers paid in cash, collected by the provider; on $500 that is $5, on top of Western Union's fee. Bring a valid government photo ID and your recipient's details, and note that Nigerian payouts are made in naira.
Paying cash at a Western Union agent is still common among Nigerians in the US, especially for people who prefer not to link a card or bank account. It works, but since 2026 it costs more than paying from an account. This guide sets out what Western Union's US pages say as at October 2026, the 1% remittance tax, and what happens at the Nigerian end.
How it works
Western Union's US page for Nigeria offers two cash routes: "Come and visit us to pay in cash or speak to an advisor", or "Start your money transfer on the app and pay later at an agent location." Either way you pay the agent, receive a receipt with a 10-digit tracking number (MTCN), and your recipient is paid in Nigeria.
What to bring
- A valid government-issued photo ID. Western Union's US pages we read do not list in-person ID; its identity FAQ mentions a driver's licence or passport as examples of documents it may ask for, and says federal law requires it to verify identity.
- The recipient's full name exactly as on their ID or bank account; Western Union says the name must match the bank account owner.
- For bank deposit, the recipient's bank and account number; Western Union also asks for name and address.
- Cash for the amount, the fee and the tax.
The 1% remittance tax on cash
Section 4475 of the US tax code imposes a 1% excise tax on remittance transfers made after 2025 where the sender pays with cash, a money order, a cashier's cheque or a similar physical instrument. The sender is liable and the provider collects it. Transfers paid from a bank account or with a debit or US-issued credit card are exempt, and the proposed regulations exclude transfers of $15 or less. Under the proposed regulations the tax is worked out on the amount transferred, not on the fee, and once collected it is not refunded by the provider if the transfer is later cancelled; the sender may claim a refund from the IRS if the money is returned.
| Cash sent (example) | 1% tax | Plus |
|---|---|---|
| $100 | $1 | Western Union's fee for that transfer |
| $500 | $5 | Western Union's fee for that transfer |
| $1,000 | $10 | Western Union's fee for that transfer |
Our guide to the 1% remittance tax on cash covers the detail, and sending by money order explains why that is taxed too. This is information, not tax advice.
Fees and rate
Western Union's US Nigeria page does not print fee figures; it points to its price estimator. It says Western Union "also makes money from currency exchange", so compare the naira your recipient will get, not just the fee. The agent's receipt shows the fee, tax, rate and the amount to be paid out, which US federal rules require. See our guide to Western Union fees by payment method.
At the Nigerian end
The CBN's rules, reinforced from 1 May 2026, require licensed money transfer operators to pay recipients in naira. Western Union's US page still says transfers to First Bank, GTBank and Access Bank accounts are "available for USD deposit only"; that wording conflicts with the naira-only rule, so expect naira and check with Western Union before sending. Reporting on the CBN directive says naira cash payouts remain possible, with larger amounts paid into a bank account. Our Nigeria guide to CBN remittance rules explains the payout rules, and dollars or naira for the receiver covers what your family will see.
Worked example
Example only. Mrs Adeyemi in Newark pays $500 in cash at an agent for her son's school fees in Ibadan. The agent collects $5 in remittance tax and Western Union's fee for that transfer, and gives her a receipt with the MTCN, the rate and the naira amount. Had she paid the same $500 by debit card in the app, there would have been no remittance tax. She shares the MTCN with her son, who collects or receives the naira.
Cash or account: the difference
If you have a US bank account or debit card, paying from it avoids the 1% tax altogether, and Western Union's page lets you start online or in the app. Cash still makes sense if you have no account or need to send from cash income, but it is worth knowing that on a regular $500 a month, the tax alone comes to $60 over a year.
What to check first
- Check the fee and the naira amount in Western Union's estimator before you go.
- Add 1% for the remittance tax if you will pay cash.
- Bring a valid photo ID and the recipient's exact details.
- Check the receipt before you leave the counter: amount, fee, tax, rate, naira amount and MTCN.
- Share the MTCN only with the recipient.
Where Pryme fits
If you would rather not carry cash, a Pryme multicurrency account can be opened from the US, and the app shows the rate and the fee before you approve. Outside Nigeria, Pryme's services are provided through regulated partners.
Questions people ask
Can I send money to Nigeria with cash at Western Union?
Yes. Western Union says you can pay cash at an agent, or start in the app and pay at an agent.
Is there a tax on cash transfers from the US?
Yes. A 1% federal excise tax applies from 1 January 2026 to remittances paid in cash, money orders or cashier's cheques.
What ID do I need at a Western Union agent?
Bring a valid government photo ID; Western Union's FAQ mentions a driver's licence or passport as examples.
Will my family in Nigeria get dollars or naira?
Naira. The CBN requires licensed money transfer operators to pay recipients in naira.
Sources
- Send money to Nigeria, Western Union US · accessed Oct 2026
- Identity verification, Western Union FAQ · accessed Oct 2026
- Instructions for Form 720 (Rev. June 2026), IRS · accessed Oct 2026
- Proposed regulations on the remittance transfer excise tax, REG-114499-25 (Federal Register doc 2026-07085, 13 Apr 2026) · accessed Oct 2026
- Routing remittances through regulated channels: the CBN's new directive to IMTOs, Udo Udoma & Belo-Osagie (Mar 2026) · accessed Oct 2026
- What the CBN naira-only remittance policy means, Techeconomy (28 Mar 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.