Sending money from the US to Nigeria now runs on rules the Central Bank of Nigeria (CBN) rewrote in 2024: licensed transfer operators pay out only in naira, mostly straight into a bank account over NIBSS Instant Payment (NIP). Below are the costs, the details your recipient must supply, and the taxes, seasons and scams particular to Nigeria; the money transfer hub covers the basics.
Why is Nigeria one of the cheapest corridors from the US?
Because many services price naira close to or above the market reference rate, so the exchange-rate margin is tiny and the flat fee is most of the cost. In the World Bank's Q3 2025 survey, sending $200 cost 2.72% on average, the lowest figure among the 42 US corridors priced, while Ethiopia, at 3.14%, and El Salvador, at 3.50%, came next.
| Amount sent | Average fee | Exchange-rate margin | Total cost (% of amount) | Total cost |
|---|---|---|---|---|
| $200 | $4.47 | 0.48% | 2.72% | $5.43 |
| $500 | $5.79 | 0.43% | 1.59% | $7.93 |
On $200 the average fee was $4.47 and the margin just 0.48%, so the typical sender paid $5.43 in all. Each service the World Bank sampled between August 8 and 20, 2025 counts equally, however much money it moves. Three things the averages do not tell you:
- Negative margins pull the average down. Several services offered more naira than the survey's reference rate of roughly ₦1,531 to ₦1,535 per dollar, which the World Bank records as a negative margin, down to −0.58%. Margins near 1% were common among the rest, and the dearest $200 quote, from a bank, cost 9.87%.
- Costs in Nigeria are left out. Only what the sender pays is counted. A charge by the recipient's bank, or the 3% fee on cash withdrawals above Nigeria's weekly limit, comes on top.
- The naira amounts have aged. At the survey's reference rate, $200 bought about ₦306,600. At the CBN's official rate of about ₦1,346 on October 30, 2026, the same $200 is worth about ₦269,200, so judge quotes by percentage and convert at today's rate.
Here is what common amounts are worth at the latest mid-market rate, and after a 0.5% or a 2% markup:
| You send | At the mid-market rate | With a 0.5% markup | With a 2% markup |
|---|---|---|---|
| $200 | NGN 269,690 | NGN 268,341 | NGN 264,296 |
| $500 | NGN 674,224 | NGN 670,853 | NGN 660,740 |
| $1,000 | NGN 1,348,448 | NGN 1,341,706 | NGN 1,321,479 |
Exchange-rate markups shows how to turn any quoted rate into a percentage, and the exchange-rate methodology explains where the mid-market figures in that table come from.
Worked example: $300 to a bank account in Lagos, two ways
Use a mid-market rate of ₦1,346 per dollar, near the official close on October 30, 2026, so $300 is worth ₦403,800 before costs. Quote A charges a $2.99 fee and offers ₦1,339.27, a 0.5% markup. Quote B has no fee but offers ₦1,319.08, a 2.0% markup.
- Quote A credits 300 × ₦1,339.27 = ₦401,781. The ₦2,019 shortfall against mid-market is worth $1.50, so the total cost is $2.99 + $1.50 = $4.49, or 1.50% of the $300 sent.
- Quote B credits 300 × ₦1,319.08 = ₦395,724, a shortfall of ₦8,076, or $6.00. With no fee, that markup is the whole cost: 2.00%.
- Quote A leaves ₦6,057 more in the account, even though it is the only one with a fee.
- The World Bank averages were 2.72% on $200 and 1.59% on $500, so A is in line with the market and B is pricey for this corridor.
The same fee-plus-markup arithmetic drives the money transfer cost calculator. It is set up for pounds and rupees, but the method carries over to naira unchanged.
Flat fees from the US to Ghana and Kenya were similar, but their average margins were about four times Nigeria's:
| Corridor | Quarter | Cost of sending 200 (%) | Cost of sending 500 (%) | Average fee on 200 | Exchange-rate margin |
|---|---|---|---|---|---|
| Nigeria | Q3 2025 | 2.72% | 1.59% | $4.47 | 0.48% |
| Kenya | Q3 2025 | 4.26% | 3.36% | $4.64 | 1.94% |
| Ghana | Q3 2025 | 4.37% | 3.26% | $5.14 | 1.80% |
Our Ghana guide and the Kenya guide explain what drives prices on those two routes.
Why do licensed operators pay Nigerians only in naira?
The CBN's Revised Guidelines for International Money Transfer Services, issued on January 31, 2024, require licensed operators to pay inbound transfers in naira, at the prevailing market rate. That reversed a policy dating from late 2020, when the CBN had told operators to pay diaspora remittances in dollars, as cash or into domiciliary accounts. The 2024 guidelines add several rules that shape how your money arrives:
- Anything above the equivalent of $200 must be paid into a bank account. Smaller amounts may be collected in cash against an international passport, driver's licence, national identity card or INEC voter's card.
- If the recipient banks elsewhere, the operator's partner bank credits that account at the other bank.
- Neither the operator nor its agents may charge the beneficiary any fee beyond what was agreed with the sender when the transfer was paid for.
- Conversion uses the rate prevailing on the day the transfer is received, and the operator must disclose its charges and its rate.
- An operator may not process a transfer that appears to have been split into small amounts to dodge anti-money-laundering reporting.
A circular dated March 24, 2026, in force since May 1, made operators route every payout through designated naira settlement accounts at authorized dealer banks and price customer transactions using real-time quotes on Bloomberg's BMatch platform as guidance.
Dollars can still reach Nigeria by bank wire to a domiciliary account, where they stay in dollars until the account holder converts them. Expect an outgoing wire fee and possibly intermediary and receiving charges, broken down in the guide to international wire transfer fees.
How has the naira behaved since the 2023 float?
The naira lost about 40% of its value in the first half of 2023, sliding from ₦461 to ₦769 per dollar as the CBN merged its exchange-rate windows. The June 2023 reform folded the official segments into one market, now called the Nigerian Foreign Exchange Market (NFEM), where the rate is set by willing buyers and sellers rather than by the central bank.
Since late 2024 that trading has run on an electronic matching system the CBN approved on Bloomberg's BMatch platform. By the World Bank's August 2025 survey, reference rates sat near ₦1,533. The CBN's official NFEM rate on October 30, 2026 was about ₦1,346, so a dollar bought roughly 12% fewer naira than it had 14 months earlier. The rate moves every trading day, so compare quotes within minutes of each other, and treat a quote far above the official rate with suspicion.
Account details to collect before you send
Ask your recipient to send these in writing, ideally copied from their banking app rather than typed from memory:
| Detail | Format | Obviously fake example | Why it matters |
|---|---|---|---|
| NUBAN account number | 10 digits | 0123456789 | Nine digits identify the account and the tenth is a check digit computed with the bank's code |
| Bank or institution | The name in your provider's list | Commercial, microfinance or payment service bank | A NUBAN is unique only within its bank, so number and bank travel together |
| Account name | As registered with the bank | AMAKA TEST OKAFOR | NIP returns this name before payment; stop if it differs from the person you mean to pay |
| Mobile number | +234 followed by 10 digits | +234 800 000 0000 | Used for payout alerts and by some providers to verify the recipient |
| ID for cash collection | International passport, driver's licence, national ID card or INEC voter's card | Name must match the transfer | Cash is allowed only up to the equivalent of $200 per transfer |
| Tracking number | Issued by your provider | Shown on your receipt | Needed to collect cash and to raise any complaint |
| For a dollar wire instead | Domiciliary account number plus the bank's SWIFT code | ABCDNGLA (format only) | A domiciliary account keeps the money in dollars |
Before NIP moves money, the sending bank asks the receiving bank for the account name, and many transfer services show it or compare it with the name you typed. The check digit catches most typos but not a valid number that belongs to someone else, so the name check is the safeguard that counts.
You never need your recipient's 11-digit Bank Verification Number (BVN) to pay them, and a message asking either of you for a BVN or a one-time code is a red flag.
How fast does NIP credit a Nigerian account?
Within seconds in most cases, once your provider releases the money: NIP runs around the clock, including weekends and public holidays. Delays usually start in the US, with a bank debit that takes days to clear or identity checks on a first or unusually large transfer. Cash collection depends on agent opening hours, and a SWIFT wire to a domiciliary account takes days and moves only when banks in both countries are open; the guide to how long international transfers take explains each stage.
Christmas Day falls on Friday, December 25, 2026, and Boxing Day on Saturday, December 26. Under the Public Holidays Act a Saturday holiday earns no extra day off unless the government declares one, and it typically announces the Christmas arrangements only days ahead, so finish branch errands by December 24. New Year's Day is Friday, January 1, 2027.
Taxes, stamp duty and cash limits at both ends
In the US, the federal remittance transfer tax covers transfers made after December 31, 2025 and costs 1% of the amount sent, on transfers paid with cash, a money order, a cashier's check or a similar physical instrument (IRS, as of Nov 1, 2026). Transfers funded from a bank or other financial-institution account, or with a US-issued debit or credit card are outside it, which covers most online sends to Nigeria; the guide to the US remittance transfer tax explains who collects it. Federal rules also make providers disclose the rate, fees and naira amount before you pay, and the cancellation window is 30 minutes after paying, for a full refund; remittance transfer rights covers errors and refunds. Building a house or covering a year of fees can push your gifts past $19,000 per recipient in 2026, which means filing a gift tax return, though tax is rarely due; see gift tax on money sent abroad.
In Nigeria, four rules matter to the people receiving the money:
- Income tax. Nigeria's Presidential Fiscal Policy and Tax Reforms Committee has said genuine family remittances and gifts are not taxable income under the tax laws in force since January 1, 2026, and that Nigerians abroad with no Nigerian-source income need no Nigerian tax ID.
- Stamp duty. Since January 1, 2026, the ₦50 duty on electronic transfers of ₦10,000 or more is charged to the sender of the naira transfer, replacing the earlier levy that was deducted from the receiving account.
- Cash withdrawals. Under CBN rules in force since January 1, 2026, individuals can take out ₦500,000 a week in cash across all channels, with ₦100,000 a day at ATMs and a 3% charge on any excess. Withdrawing a ₦700,000 transfer in cash within one week costs ₦6,000 on the extra ₦200,000, so paying school fees or a builder by transfer is cheaper.
- Accounts for the diaspora. Since January 2025 Nigerians abroad can open a Non-Resident Nigerian Ordinary Account, which holds naira and foreign currency for family maintenance, school fees and medical bills, with foreign-currency balances fully repatriable, or a companion account for investing in Nigeria.
Nigerian banks ask for a BVN when you open an account, and the NIBSS Non-Resident BVN service, launched in May 2025, issues one remotely within 72 hours of approval for a $50 processing fee.
School fees, December and Easter: Nigeria's sending calendar
Demand peaks around school terms, the Christmas season and the main religious festivals. These 2026–27 dates come from the Lagos State harmonised school calendar; other states publish their own:
- Second term: the Christmas break runs from December 21, 2026 to January 8, 2027, and classes restart on January 11, so second-term fees fall due just as holiday spending ends.
- Easter: Good Friday is March 26, 2027 and Easter Monday is March 29, both public holidays.
- Eid: the calendar marks Eid-el-Fitr on March 10 and 11, 2027 and Eid-el-Kabir on May 17 and 18, 2027; the final dates depend on the sighting of the new moon.
- Third term: classes resume on May 3, 2027, the next round of fees.
Peaks are not only seasonal. The CBN reported record inflows of $947 million through licensed operators in July 2026, a month with no major holiday. For fees, send a few days early and pay the school's own account, with the student's name in the payment reference.
Which scams target senders to Nigeria?
Fake credit alerts, impostors on hacked accounts, street dealers and bogus release fees cause most losses on this route.
- Fake alerts. A text that looks like a bank credit alert proves nothing. Recipients should confirm the balance in their banking app before releasing goods, cash or a refund of an apparent overpayment.
- Hacked accounts. A message from a relative's real social media or messaging profile asking for urgent money to a new account is a classic impostor play. Call them on a number you already have, and compare the name NIP returns with the person you think you are paying.
- Street dealers. Informal operators who take dollars in the US and pay naira in Nigeria give you no disclosures, no cancellation right and no recourse if the naira never arrives, all for a rate that was only about 3% better than the official one in late October 2026.
- Extra fees at payout. CBN rules bar anyone from charging your recipient more than you agreed when you paid, so a demand for a release fee is a reason to complain, not to pay.
If something goes wrong, contact your provider first; unresolved problems with a US provider can go to the CFPB. A dispute with a Nigerian bank starts with the bank and can then be escalated to the CBN's consumer protection department, and dialing *959# checks whether a Nigerian financial institution is licensed. The money transfer scams guide covers wider patterns.
What do the remittance statistics show for Nigeria?
Nigeria received about $22.8 billion in personal remittances in 2025 by the World Bank's count, equal to 7.8% of GDP and the most in sub-Saharan Africa. That compares with $20.6 billion a decade earlier and a dip to $17.2 billion in 2020.
The CBN's own figure for 2024 was $20.93 billion. Only part of that is recorded as passing through licensed transfer operators, but that part is growing fast: $4.73 billion in 2024, up from $3.30 billion in 2023, and $3.8 billion in the first seven months of 2026, 50.2% more than a year earlier. The CBN has set a goal of $1 billion a month through those channels.
Figures on this page come from CBN, NIBSS and World Bank publications checked under our editorial policy; the Learn section has more guides on rates, fees and payment rails.