How to Receive Money from Abroad in Nigeria

In the modern world, receiving money from abroad is an essential part of life for many Nigerians, whether it’s for family support, business, or personal needs. Thanks to technology and the rise of global financial networks, receiving international transfers has become easier than ever.

Gone are the days when receiving money from overseas was an arduous process; now, Nigerians can seamlessly get money transferred into their bank accounts, mobile wallets, or even cash through different money transfer services.

Whether you’re a freelancer, entrepreneur, or someone with family living abroad, understanding how to receive money efficiently is crucial to ensure a smooth transaction process.

The methods for receiving money from abroad to Nigeria have grown in number and variety, making it convenient to pick the one that works best for you.

The most popular options include bank transfers, international money transfer services like Western Union and MoneyGram, mobile money wallets, and even cryptocurrencies. However, each method comes with its own set of advantages and challenges.

While some options offer faster delivery times, others may have higher fees or require additional verification processes. This guide will walk you through how to receive money from abroad in Nigeria, explaining each method, the necessary steps, and the potential costs involved.

1. Bank Transfers (Wire Transfers)

Bank transfers are one of the most secure and traditional ways of receiving money from abroad in Nigeria. With the help of international banking systems such as SWIFT (Society for Worldwide Interbank Financial Telecommunication), you can receive money directly into your Nigerian bank account.

Nigerian banks like GTBank, First Bank, Zenith Bank, and Access Bank have established relationships with international financial institutions, making it easier to send or receive money across borders.

To receive money through a bank transfer, you will need to provide your sender with your bank account details, including your bank’s name, SWIFT code, IBAN (International Bank Account Number), and account number.

Depending on the bank and the country where the money is coming from, the funds could take anywhere from 2-5 business days to clear into your account.

Some banks may charge fees for receiving international transfers, so it’s important to be aware of the charges. While bank transfers are relatively secure, they can sometimes be slow and costly, especially if you’re transferring smaller amounts.

Steps to Receive Money via Bank Transfer:

• Share your bank details (SWIFT/BIC code, IBAN, bank name, etc.) with the sender.
• The sender initiates the transfer from their bank or transfer service.
• Wait for the money to be deposited into your bank account (typically 2-5 business days).
• Withdraw the money from your bank account as you normally would.

2. International Money Transfer Services

For those who want faster alternatives to bank transfers, international money transfer services such as Western Union, MoneyGram, and WorldRemit are excellent options. These services have made it possible for Nigerians to receive money almost instantly, with some transfers available within hours.

Western Union, for example, has numerous locations across Nigeria where recipients can pick up cash in person. Alternatively, other services like WorldRemit offer the option to deposit funds directly into your Nigerian bank account or mobile wallet.

One of the biggest advantages of using money transfer services is their speed. Unlike traditional bank transfers, which can take days, services like Western Union and MoneyGram can deliver funds in minutes or a few hours.

However, these services are generally more expensive, and the sender may need to pay high fees depending on the transfer amount and payment method.

It’s also important to note that certain services may require you to present identification at the pickup point for verification purposes, which adds an extra layer of security to prevent fraud.

Popular Money Transfer Services:

• Western Union: Cash pickups and bank transfers. Offers a wide network of agent locations.
• MoneyGram: Similar to Western Union, with numerous pickup locations in Nigeria.
• WorldRemit: Offers both bank transfers and mobile money options for recipients in Nigeria.
• TransferWise (Wise): Offers low-cost bank transfers with competitive exchange rates.

Steps to Receive Money via Transfer Services:

• The sender initiates the transfer through their chosen service.
• You receive a reference number or code (for cash pickups).
• Go to the nearest agent location (e.g., Western Union or MoneyGram) or check your bank account for a direct deposit.
• Collect your funds after verifying your identity (if required).

3. Mobile Money and E-Wallets

In recent years, mobile money services and e-wallets have gained popularity as convenient options for receiving money from abroad. These services allow you to receive international payments directly to your mobile phone or digital wallet, making the process of receiving funds much faster and more flexible.

Services such as Payoneer, Skrill, and even mobile wallets like MTN Mobile Money or Airtel Money enable you to receive money that can be used for online purchases or withdrawn to your bank account.

For example, Payoneer allows users to receive payments from international clients or companies and withdraw funds into Nigerian bank accounts.

This service is especially useful for freelancers or digital entrepreneurs who receive payments for their work. PayPal, although popular in many parts of the world, still faces some limitations in Nigeria, as users can’t directly withdraw funds to their Nigerian bank accounts.

However, this could change in the future, making PayPal an even more useful tool for international transactions.

Popular Mobile Money & E-Wallets:

• Payoneer: Ideal for freelancers and entrepreneurs. Supports international payments.
• Skrill: A digital wallet that lets you send and receive international payments.
• MTN Mobile Money: Available in some regions of Nigeria, allowing for international transfers to mobile wallets.
• Airtel Money: Another mobile wallet option that enables easy transfers.

Steps to Receive Money via Mobile Wallets:

• Sign up for a mobile wallet account or e-wallet service (e.g., Payoneer, Skrill).
• Link your account to your Nigerian mobile phone or bank account.
• Share your e-wallet details with the sender.
• Once the payment is sent, you can withdraw or use the money as needed.

4. Cryptocurrency Transfers

With the global rise of cryptocurrencies like Bitcoin, Ethereum, and Litecoin, receiving money through digital currencies has become an increasingly viable option for Nigerians.

Cryptocurrencies offer several advantages over traditional bank transfers, such as lower transaction fees, faster transfer times, and the ability to bypass the traditional financial system.

By using a cryptocurrency wallet, Nigerians can receive funds directly into their wallet and then exchange them for Naira at a cryptocurrency exchange like Binance or Luno.

Despite its benefits, cryptocurrency is not without its risks. Cryptocurrencies are highly volatile, meaning their value can fluctuate rapidly, affecting the amount of money you ultimately receive.

Additionally, cryptocurrency transactions are irreversible, so it’s important to ensure the sender’s details are correct before finalizing the transfer.

However, for those who are tech-savvy, cryptocurrencies present a powerful way to receive money from abroad quickly and efficiently.

Popular Cryptocurrencies for International Transfers:

• Bitcoin (BTC)
• Ethereum (ETH)
• Litecoin (LTC)

Steps to Receive Money via Cryptocurrency:

• Create a cryptocurrency wallet using platforms like Binance, Luno, or Coinbase.
• Share your wallet address with the sender.
• The sender initiates the transfer, and the funds are deposited into your wallet.
• Convert the cryptocurrency to Naira via a local exchange (if desired).

5. What Are the Costs and Fees Involved?

The cost of receiving money from abroad in Nigeria can vary widely, depending on the method you choose. Bank transfers tend to have higher fees and longer processing times, while mobile money and cryptocurrency transfers often offer lower costs and faster delivery.

Money transfer services like Western Union and MoneyGram also come with fees, which can vary based on the transfer amount and the recipient’s location.

It’s essential to compare the fees for each method to determine the best option based on your needs. Additionally, be aware that exchange rates may also affect the total amount you receive, as the conversion from foreign currency to Naira might come with an additional cost.

Common Fees to Expect:

• Bank Transfers: Can involve both flat fees and percentage-based charges.
• Money Transfer Services: Fees vary based on transfer amount and payment method.
• Mobile Money/E-Wallets: Some services charge a percentage of the transfer amount or a fixed fee.
• Cryptocurrency: Low fees, but fluctuating exchange rates may impact the value of the funds received.

Frequently Asked Questions (FAQs)

Conclusion

Receiving money from abroad in Nigeria has never been more accessible, thanks to advancements in financial technology. Whether you choose to receive money through a bank transfer, an international money transfer service, a mobile wallet, or cryptocurrency, each method has its benefits and drawbacks.

It’s crucial to evaluate your needs, the associated costs, and the speed of transfer to determine the best option for you. With the right knowledge, you can efficiently and securely receive money from abroad, making financial transactions easier than ever before.