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There is a large number of Nigerian citizens living abroad. UN Department of Economic and Social Affairs (DESA) put this number at 1.7 million as at 2020. Unofficial data puts it at between 15 and 20 million people. This huge diaspora population constantly send money to Nigeria.
They send money either for business, investment or to their family members to help them carry out building or other projects at home. Available data shows that Nigerians abroad remitted about USD63.5 billion in three years between 2019 and 2021.
In deed, diaspora remittances account for 4.5% of the country’s GDP.
What is covered in this post hide
I How to Send Money to Nigeria
II #1. Wise
III #2. World Remit
IV #3. Remitly
V #4. Moneygram
VI #5. RIA
VII Related
However, two years ago, the Central Bank of Nigeria (CBN) released a regulatory guideline on diaspora remittances. According to the new policy it is no longer to possible to send Naira directly to the bank accounts of domestic receipients. In other words, diaspora inflows can not be received in local currency any more.
What this means is that the receipient has to have a domicilliary account to receive diaspora remittances directly into his or her acount. The purpose of this policy is to halt the pressure on the Naira, increased supply of foreign exchange and moderate the worsening value of the Naira.
However, there are challenges. First, there’s still a large number of Nigerians that don’t have bank accounts, let alone domicialiary accounts. Secondly, high transaction costs discourage immigrants to send money through bank wire.
As a result, immigrant Nigerians are constantly looking for better ways of sending money home. Better, means easier, faster and cheaper money transfer services and in this post, we shall hihglight a few of these services.
How to Send Money to Nigeria
It is important that you consider the following parameters in choosing a money transfer service:
- Transaction Cost
- Reliability
- Speed
- Convenience
- Customer Support
Based on the foregoing, here’re our pick for some of the best, fast and cheap money transfer services providersyou can use to send money to Nigeria.
Whether you are sending money for the purpose of starting or running a small business at home, or to your relative to help you complete that house projects or even make investment on for you, these services will serve you adequately.
#1. Wise
Formely known as Transfer Wise, Wise prides itself as a low-cost, fast and secure money transfer service from the United Kingdom, the United States and most other countries to Nigeria. This service is rated 4.5 out 5 on Trustpilot and has 13 million customers around the world and offers global support.
Sending money using Wise is done in the following steps:
- Create a free Account
- Provide sender and receiver details
- State the transfer amount
- Send
Your transfer could be from your bank account, credit or debit card. And the receiver also have a number of options for the receipt of the money. This include Cash Pick Up, direct payment into receipient’s domiciliary account or via mobile top up.
However, with the new CBN rules, transfer to mobile wallet doesn’t seem to be feasible. Nigerian banks that currently partner with Wise to receive money in Nigeria either through cash pick up or credit into domiciliary accounts include: FCMB, UBA, Zenith Bank, First Bank and Polaris Bank.
Check out the wise website to get started
#2. World Remit
World Remit is one of the International Money Transfer Organizations (IMTO) licensed by the Central Bank of Nigeria. The service is also gaining popularityamongst immigrants wishing to send money to most parts of Africa.
For Nigerians living abroad, World Remit offers fast, easy and secure way of sending money to Nigeria. A number of options are available on their easy to use platform.
Recipients get the money by cash pick up in USD from any of the local partner banks. These banks include Access Bank, FCMB, Fidelity Bank, Ecobank, First Bank, GT Bank, Polaris Bank, Union Bank, UBA and Zenith Bank. Cash is available for pick up from any of these partnes within a few minutes.
Transaction cost is low in terms of fees and exchange rate are lower than what you get on conventional bank transter. It’s fees are competitive relative to most money transfer services.
#3. Remitly
Remitly Inc., is a money transfer company with headquarters in the United States. However, it is one of the approved IMTOs in Nigeria by the CBN. For Nigerians living in the United States, this service offers easy and convenient way of sending money home.
The receipient collects whatever you sent within minutes from any of the partner banks. GTCo, FCMB, Polaris Bank, First Bank, Ecobank, Access Bank, Union and UBA are the banks from where receipients can pick up their cash in dollars. Remitly also gives an incestive for every money recieved.
Sending money to Nigeria through Remitly is very easy: create a free account on the platform, chose your deliver provider (i.e any of the partner banks), enter personal and payment detail, send and track your transfer.
Get started with Remitly here
#4. Moneygram
With presence in 200 countries and territories and about 350,000 agent locations, Monegram is one of the oldest global provider of international money transfer services.
Immigrant Nigerians can thus send money from where they are to Nigeria. Monegram offers three options, namely,
- Send money online
- Send money physically – walk into any of the agent locations, fill the necessary forms, provide relevant documentation and send your money
Sending money through moneygram is affordable, safe and secure. In Nigeria, Moneygram partner with top banks such as UBA, Zenith and First Bank from where receivers can collect the funds in dollars.
#5. RIA
Before the CBN’s restriction, RIA was known for its ease of sending money directly to local bank acounts. Thus, receipient needed not go to the bank to pick up. With the new policy of the CBN, RIA like other service providers still send money to Nigeria, however recepient has to pick it up at one of their partner banks.
Ria is know for its fast, safe and reliable service. It also provide one of the lowest fees and operates in about 165 countries and 314,000 locations around the world, Sending money is easy. Download the Ria app, create an account, provide sender and receiver details and transfer from your bank account or credit or debit cards.
To receive money via the Ria money transfer, the receipient is required to provide some details. This include: sender’s name, country the money is coming from, proof of identity, amount and a pin number which the sender is required to generate and send to the recipient.
Access Bank, Polaris Bank and Ecobank are some of the banks that represents Ria in Nigeria.
Final Words
Sending money for family or business purposes need not be a hasle. With the array of options available, it is important that you compare a couple of providers based on the parameters earlier highlighted. Then register with your preferred provider online, follow through the process to set up your transfer.
It’s as simple as these steps.
Buchi
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Buchi creates content and leads the Team at Kobotalk Management Services; a business development and investment consultancy firm. He provides strategic advisory to help SME's, small business owners and HNI's grow profitable business and make informed investing decisions.
