In 2024, Nigeria received $21.29 billion in personal remittances, accounting for 11.3% of the country’s GDP, according to World Bank data.
Digging further, Nigeria is the highest remittance-receiving country in Africa, surpassing Egypt, which previously held the record. It is also the only sub-Saharan African country that has consistently received more than $5 billion annually in remittances since 2005. And at 41% of all remittance inflows, the U.S. and the UK are the major sources of remittances to Nigeria.
With these numbers in view, it is clear that lots of people are sending money to Nigeria and that the money coming in holds significant weight.
This article provides a step-by-step guide on how to send money to Nigeria online, with extra tips on how to choose the right money transfer method to Nigeria.
But before we go into all that, why is so much money being remitted to Nigeria?
Why People Send Money to Nigeria
Nigeria has a thriving migrant population abroad, most of whom are working and remitting money back home to their loved ones and business partners. In the U.S., for instance, there are over 638,000 Nigerians living across all the states, with Texas holding a record number of 124,717 documented Nigerians.
Most of the remittances coming into Nigeria serve as a lifeline for many Nigerian families, who rely on them for better healthcare, education, housing, and other essentials. As one of the top 15 poorest countries in the world by GDP per capita, continued foreign currency inflows to a given family could be the difference between living in poverty and stepping up to the middle class.
Additionally, Nigerians abroad capitalize on the exchange rate to boost their real estate and business investments back home.
More so, Nigeria is also one of the top African countries for foreign business owners looking for affordable freelancers to join their teams, leading to substantial remittance inflows coming from that direction.
What You Need for Your Transfer
Sending money to Nigeria online is as easy as having a stable internet connection and a smartphone/computer for accessing your money transfer service provider’s platform.
To complete your transfer to Nigeria, licensed providers typically ask that you provide:
- A valid document, such as a driver’s license, national ID card, state ID, work permit, passport, or resident alien card.
- The recipient’s full name and bank details (or mobile money account)
- A payment method by linking your debit/credit card or bank account to fund the transfer. Credit cards tend to attract more bank charges than debit cards.
With all these in place, you are ready to send money to Nigeria online.
Step-by-Step Guide to Sending Money Online
Below are the necessary steps for sending money to Nigeria.
Choose a Transfer Service
Fintech money transfer service providers are generally faster, cheaper, and more convenient than traditional banks for sending money to Nigeria.
Traditional wire transfers, on the other hand, could attract as high as 6% markup on exchange rates with transfer fees as high as $45. More so, they could take up to 5 days to get to the recipient.
Sign Up and Verify Your Identity
Once you have chosen your preferred transfer service provider, follow their prompts to register on their mobile app or online banking platform.
As a golden rule, ensure you use your real name as it appears on your documents, to avoid being restricted from making transfers.
Your account will be up and running within a few minutes.
Enter the Transfer Details
Depending on the terms used by your provider, go to the “Transfers” or “Make a transfer” tab to initiate your transfer.
Usually, this involves providing the recipient’s info (including identity, recipient’s bank, and bank account), amount, and delivery method. Double-check names and account numbers to ensure they match before you proceed with the transfer.
Pay for the Transfer
Proceed to pay for the transfer using your credit or debit card, or any other applicable option offered by your provider.
Note the fees and exchange rates before you hit “send.” If you are not comfortable with the fees, it is okay to stop and find a more favorable provider.
Confirm and Track
Notable fintech money transfer apps have features that provide real-time updates for every change in the status of your transaction. With traditional banks, you may have to use a transaction reference in the receipt or a tracking number to monitor your transaction’s status.
How to Choose the Right Method to Send Money to Nigeria
Here, you are looking for cost savings, convenience, and speed. To get the best of all these factors, you have to compare the available options against the following criteria:
- Fees and exchange rates: By going for the service with the lowest or zero fees as well as better exchange rates, you’d easily be saving hundreds of dollars at your end annually, while the recipient gets more thousands of naira in their account.
- Delivery speed: The faster, the better. Choose the method that delivers money to the recipient instantly, saving you from distress as a result of delayed transfers.
- Read reviews or ratings: Do this to determine which of the options is better suited for sending money to Nigeria.
Also, confirm that the method you choose, whether bank, mobile, or cash transfer, aligns with the recipient’s preferred method.
Safety Tips
The first step to staying safe when sending money to Nigeria online is to use only trusted, licensed services compliant with key regulations like the CCPA and other federal compliance.
Secondly, activate two-factor authentication on your accounts, both at the login and transfer points. This is very important for blocking unauthorized access and transfers from your account.
As a general rule of thumb, you should avoid sending money to strangers or strange accounts. Insist that the recipient provides an account that matches their real name. More importantly, watch out for scams and avoid “too good to be true” offers.
If you encounter any issues, do not hesitate to contact your provider right away.
Conclusion
Sending money to Nigeria online is quite straightforward, as long as you provide valid documents and appropriate transaction details. The best part is that there are various fintech money transfer services and delivery methods you can utilize to ensure you save the most money while enjoying more convenient and faster services.
It is now left to you to take out time to compare these services and choose the one with the best exchange rates, transfer fees, security, and speed. You’d definitely appreciate the ease and cost savings that come with working with the right fintech money transfer service.
Featured image by kadirie781 on Freepik
