Understanding Nigeria's Money Transfer Regulations

Nov 11, 2025 0

Sending money to Nigeria is more than just a transaction-it’s often a lifeline for families, a bridge connecting loved ones, and a means to cover urgent needs. It's about trust, ensuring your hard-earned money reaches its destination without delay or exorbitant fees. Navigating the options can be overwhelming, but understanding the regulations and available services is key to making informed decisions.

Nigeria's Regulatory Authority

The Central Bank of Nigeria (CBN) plays a pivotal role in overseeing the financial system. Its responsibilities include conducting national monetary policy, maintaining foreign exchange reserves, and ensuring price stability. The CBN licenses foreign exchange businesses and issues regular circulars with forex guidelines.

The CBN has liberalized its forex policies since 2002, aiming to make foreign currency more readily available to money transfer businesses, which has increased the local forex supply. As of August 2014, the central bank had licensed 2,500 bureaux de change in Nigeria.

Key Aspects of Nigeria's Money Transfer Regulations

Best Method to Send Money from Ghana to Nigeria Without Stress

Bureaux de Change: Only authorized to offer person-to-person money transfer services, while corporate transactions must be handled by banks or other financial institutions.
Incoming Money Transfers: Can be disbursed to the recipient’s bank account, mobile money accounts, or via ATM.
Withdrawal Limits: Recipients can immediately withdraw up to US$500 per transaction. Any amount above this must be paid into an account.
Naira Exchange Rate: The CBN loosely works to keep the naira's value within a rough band, although fluctuations occur.

Recent Changes in Regulations

Nigeria’s remittance regulations have undergone several changes over the past five years. The Central Bank of Nigeria (CBN) has worked to regulate international money transfer operators (IMTOs), for example. They now require international remittance companies to work directly with licensed financial institutions in Nigeria. As of February 2021, the CBN had approved 47 such companies to operate in Nigeria.

As of December 4, 2020, Nigerian banks were once again permitted to use dollar payouts for diaspora transfers, but not to make deposits into local bank accounts. According to Emefiele, if Nigeria receives just $1-$2 billion monthly through diaspora remittance, the exchange rate of dollars to naira will improve.

The CBN also directed Nigerian banks to close ledger accounts in naira that were opened by international transfer services. These changes are crucial to increasing transparency in diaspora remittances.

The bank’s changes come with warnings to unlicensed transfer providers and individuals using them.

Revised Guidelines for International Money Transfer Services in Nigeria (2024)

On January 31, 2024, the Central Bank of Nigeria (“CBN”) released the revised Guidelines for International Money Transfer Services in Nigeria (the ‘’Guidelines’’) which effectively repealed the previous guidelines issued in 2014 (the “2014 Guidelines”).

Approval Process: Unlike the 2014 Guidelines, the Guidelines prescribe a two-level approval for a prospective IMTO licencee: Approval-in-Principle (AIP) and Final Approval.
Prohibited Entities: In contrast to the 2014 Guidelines which only prohibited deposit money banks from operating as IMTOs, the Guidelines extend the prohibition to include all banks in Nigeria and financial technology companies. However, banks are permitted to act as agents of an IMTO.
Annual Renewal Fee: The Guidelines prescribe a novel requirement for IMTOs to renew their licence every year by paying an annual renewal fee of N10,000,000.00 (Ten Million Naira only) or any other amount specified by the CBN.
Transaction Rules: IMTOs are expected to submit daily, weekly and monthly returns using the prescribed template to the Director, Trade and Exchange Department of the CBN. The Guidelines provide that all in-bound money transfers to Nigeria shall be paid to beneficiaries in Naira only through a bank account or cash.
Exchange Rate: IMTOs shall use the prevailing exchange rate at the Nigerian Foreign Exchange Market on the day the transfer is received. Where the amount exceeds the equivalent of $200 (Two Hundred United States Dollars), payment shall not be made in cash, but through an account.
Cash Payments: Qualified cash payments shall only be made upon the provision of a satisfactory an acceptable means of identification.

Opening a Bank Account in Nigeria

Foreign companies and individuals can hold forex-denominated accounts in domestic banks. There are no restrictions on the use of such accounts within Nigeria, and the funds may be repatriated freely.

However, certain forex restrictions apply for travelers with naira-denominated accounts. Individuals can withdraw a maximum of the equivalent of US$4,000 per quarter from naira accounts for personal travel, and up to US$5,000 per quarter for business travel. These transactions can be executed by bureaux de change or commercial banks.

Read also: US to Uganda Money Transfers

Choosing the Right Money Transfer Method

When sending money to Nigeria, you can choose between bank transfers, mobile wallets, or cash pick-up. Each has its advantages and disadvantages.

Bank Transfers

Bank transfers are reliable but can have high fees and slow processing times. They are convenient if the recipient has a bank account, but often not the cheapest option.

Mobile Wallets

Mobile wallets are fast and often fee-free. However, the recipient needs a mobile wallet account. They offer competitive exchange rates and quick access to funds.

Cash Pick-Up

Cash pick-up is great if the recipient prefers physical cash or doesn't have a bank account or mobile wallet. However, access to pick-up centers might be limited in rural areas.

Consider these factors when choosing a method:

Read also: Best Ways to Send Money to Nigeria

Speed: Mobile wallets and cash pick-up are faster.
Security: Ensure the provider has encryption and two-factor authentication.
Transfer Limits: Banks often have higher limits.
Cost Efficiency: Compare fees and exchange rates across methods.

Key Factors to Consider

When sending money to Nigeria, keep these factors in mind:

Exchange Rates: Compare rates from different services.
Fees: Look for transparent, no-fee transfers.
Speed: Choose a service that guarantees instant transfers if needed.
Convenience: Consider how easy it is for the recipient to access the funds.
Reliability: Use well-reviewed services with good customer support.
Compliance: Ensure the service complies with local regulations.
Multi-Currency Wallets: Use a multi-currency wallet to save money when exchange rates are favorable.

Money Transfer Services

Several services facilitate money transfers to Nigeria. Here are a few notable options:

Pesa: Known for competitive exchange rates, low fees, instant transfers, and strong security.
MoneyGram: Offers fast and reliable money transfers with various send and receive options.
Remitly: Provides a simple pricing structure with no hidden fees.
Sendwave: Offers fast, low-cost, and secure online money transfers.
WorldRemit: Provides various options for sending and receiving money.

MAJORITY is still offering no-fee money transfers to Nigeria, so you can send as many transfers as you’d like for only $5.99 a month! For only $5.99/month, you get all the no-fee money transfers you could need, plus an FDIC-insured account, Visa® Debit Card with discounts, no-fee airtime, and affordable international calling.

Comparison Table of Money Transfer Services

Service	Fees	Transfer Speed	Exchange Rates	Security
Pesa	Low to No Fees	Instant	Competitive	High
MoneyGram	Varies	Fast	Good	Reliable
Remitly	Varies	Fast	Good	Reliable
Sendwave	Low Cost	Fast	Good	Secure
WorldRemit	Varies	Varies	Good	Reliable
MAJORITY	No Fees with $5.99/month subscription	Check to see how long it is estimated to take	Regulated rate of $1.00 = $1 USD	FDIC-insured account

Regional and Economic Context

Nigeria is a member of the Economic Community of West African States (ECOWAS) and a founding member of the West African Monetary Zone (WAMZ). These affiliations aim to foster economic cooperation and potentially introduce a common currency.

Nigeria became Africa’s largest economy in 2013, driven by strong oil production and high commodity prices. It is also the most populous country on the continent and a significant recipient of foreign direct investment.