TL;DR Summary: Nigeria consistently ranks as one of Africa's top remittance-receiving countries, with the World Bank projecting inflows could approach $26 billion within two years. Remitly is the lowest-cost provider for the largest share of Nigeria-bound transfers, followed by TransferGo and Western Union. Transfers can be received via bank deposit to major Nigerian banks, mobile money, and cash pickup. The Central Bank of Nigeria's updated IMTO guidelines require all inbound transfers to settle in naira through authorized dealer banks, which has implications for providers and recipients.
Introduction: Nigeria's Remittance Landscape
Nigeria is Sub-Saharan Africa's most significant remittance-receiving economy. The World Bank projects that remittances to Nigeria could reach $26 billion within two years, assuming continued diaspora engagement and ongoing fintech innovation in the transfer sector. The United States, United Kingdom, European Union, UAE, and Canada represent the primary sending corridors for Nigeria-bound transfers, driven by a large and economically active diaspora population spanning multiple continents.
The volume and importance of these flows have prompted the Central Bank of Nigeria to introduce regulatory reforms specifically targeting the International Money Transfer Operator (IMTO) sector, with the objective of increasing formal channel volumes, improving naira liquidity, and reducing the parallel exchange market arbitrage that previously captured a portion of diaspora remittances.
Regulatory Context: CBN IMTO Guidelines
On 31 January 2024, the Central Bank of Nigeria issued revised IMTO guidelines requiring that all inbound international transfers settle in naira through authorized dealer banks. The guidelines prohibit IMTOs from executing outbound transfers, mandate annual license renewal, set minimum capital requirements, and require IMTO operators to partner with banks or Bureau de Change outlets for cash disbursement. A follow-up CBN circular from June 2024 introduced a special foreign exchange window at the Nigerian Autonomous Foreign Exchange Market (NAFEM), allowing eligible IMTOs to purchase naira directly from the CBN at prevailing market rates for same-day settlement.
These changes have implications for senders and recipients. Transfers arriving through formal IMTO channels are now settled at near-official exchange rates rather than parallel market rates, which has improved transparency and predictability for recipient households. The CBN has stated a target of $1 billion in monthly remittances, indicating continued policy support for formalized transfer channels.
The Best Apps to Send Money to Nigeria
Remitly is the overall cheapest option for sending money to Nigeria based on Monito comparison data, having been the least expensive provider for 24.23% of all Nigeria-bound transfer searches over a recent six-month period. Remitly offers two delivery tiers: Express, which delivers funds within minutes, and Economy, which takes three to five business days at a lower cost. Exchange rate margins typically range between 0.5% and 2%, and the platform supports direct deposit to major Nigerian banks including GTBank, Zenith Bank, Access Bank, and First Bank. Remitly charges no fees to recipients.
TransferGo ranks second in Monito's cost analysis, capturing 19.21% of cheapest-rate searches for European corridors to Nigeria. The platform applies low exchange rate margins and supports SEPA and Faster Payments methods for European senders, making it particularly well-suited for the UK and EU to Nigeria corridor.
Western Union maintains the most extensive cash pickup network in Nigeria, with agent locations through GTBank, FirstBank, and numerous independent agents across urban and rural areas. For senders in the USA, UK, and Germany, Western Union is frequently among the most competitive options. Its app and website allow digital initiation of transfers with real-time status updates.
Wise provides mid-market exchange rates with fully transparent fees disclosed before confirmation. The fee for a USD to NGN transfer from Wise is approximately $8.23 plus 0.51% of the amount sent. Transfers clear within one to two business days. Wise is most appropriate for users who prioritize exchange rate transparency and predictable costs over instant delivery.
Revolut offers international transfers to Nigeria with transparent pricing and no hidden markup on exchange rates. Local USD transfers within the Revolut platform are free, while international wire transfers incur a flat $10 fee. Revolut's variable fee for other transfer types is shown in-app before confirmation.
LemFi and Afriex are newer entrants serving the Nigeria corridor with zero or near-zero fee structures. LemFi is registered with the FCA in the UK, FINTRAC in Canada, and FinCEN in the United States, providing a compliant multi-currency platform for diaspora transfers. Afriex offers real exchange rates with no markup for transfers directly to Nigerian bank accounts and is a popular choice among frequent senders due to its cost structure.
Payout Options for Nigerian Recipients
Bank deposit is the most widely used payout method and is supported by all major transfer platforms. Recipients can receive funds directly to accounts at GTBank, Zenith Bank, Access Bank, First Bank, UBA, Fidelity Bank, and most other domestic Nigerian banks. Under CBN guidelines, all inbound transfers are settled in naira through authorized bank channels.
Mobile money transfers are available through select platforms and are particularly useful in areas with limited banking infrastructure. WorldRemit and Western Union both offer mobile money delivery in Nigeria. Airtime top-up is available as a supplementary payout option through WorldRemit and similar platforms at no fee.
Cash pickup remains available through Western Union and MoneyGram agent locations across Nigeria, with over 15,000 WorldRemit partner cash pickup points accessible through GTBank and FirstBank. Cash pickup is typically available within minutes of transfer confirmation.
Understanding Total Transfer Costs
The total cost of a Nigeria-bound transfer comprises the stated transfer fee and the exchange rate margin. The exchange rate margin is the difference between the mid-market NGN rate and the rate applied by the provider, and it is frequently the larger of the two cost components. For a $500 transfer, an exchange rate margin of 2% represents $10 in additional implicit cost, comparable to or exceeding the stated flat fee charged by most specialist platforms.
Comparing providers on the basis of the NGN amount received by the Nigerian beneficiary, rather than the USD fee charged to the sender, provides the most accurate basis for decision-making. Comparison platforms that display this figure in real time for the current exchange rate are the most useful tools for identifying the best available provider at the moment of transfer.
Sending USD Directly to Nigerian Bank Accounts
Several major Nigerian banks including GTBank, Zenith Bank, and Access Bank offer USD-denominated domiciliary accounts, which allow recipients to hold foreign currency balances without immediate naira conversion. Remitly supports direct deposits into USD Nigerian bank accounts, enabling senders to transfer dollars that arrive without mandatory conversion to naira. This is particularly useful for recipients managing business expenses or international tuition payments in foreign currency. The CBN's revised IMTO guidelines apply to naira-settled transfers; domiciliary account deposits operate under separate foreign exchange regulations.
Frequently Asked Questions
What is the cheapest app to send money to Nigeria?
Based on Monito comparison data, Remitly is the cheapest overall option for sending money to Nigeria, offering competitive exchange rate margins between 0.5% and 2% and low fixed fees. TransferGo is the strongest choice from European corridors. The cheapest provider varies by corridor and transfer amount, so comparing using a real-time tool before each transfer produces the best outcome.
How long does it take for money to arrive in Nigeria?
Express transfers via Remitly and Western Union deliver to Nigerian bank accounts within minutes. Standard transfers take one to two business days. Wise typically settles within one to two business days. WorldRemit reports that 90% of transfers to Nigerian partner institutions are processed within minutes of submission.
Can I send money to Nigeria without a bank account?
Yes. Cash pickup is available through Western Union, MoneyGram, and WorldRemit at agent locations across Nigeria. Mobile money transfers via WorldRemit allow recipients to receive funds to a mobile wallet account without a conventional bank account. These options are particularly important for recipients in areas with limited banking infrastructure.
What exchange rate is applied to transfers to Nigeria?
Each platform applies its own exchange rate, which includes a markup above the mid-market NGN rate. Under CBN guidelines, formal channel transfers settle at rates close to the official NAFEM rate. Wise applies the mid-market rate directly and charges a transparent fee on top. Remitly and Western Union apply their own proprietary rates, which vary by corridor and amount. Comparing the NGN amount delivered across providers is the most reliable method of evaluating the effective rate.
Is it safe to send money to Nigeria using an app?
Regulated transfer platforms operating in the US, UK, and EU are subject to AML compliance requirements, Know Your Customer identity verification, transaction monitoring, and data encryption standards. Platforms such as Wise, Remitly, WorldRemit, and Revolut are authorized by their respective regulators and maintain segregated client funds. Using a regulated, well-reviewed platform provides a materially safer transfer experience than informal or unregulated channels.
