Handling money transfer across borders from Nigeria is not so simple. A number of issues can come up with this including service charge, exchange rates, and time of arrival. Taking time to find the best and cheapest ways to make money transfer work in Nigeria is key. Simple research could save some money and this article is a starting point.
Factors to consider when doing a money transfer in Nigeria
- The amount of money will determine which service is cheaper or easier to use.
- The exchange rate has a lot of effect on the amount to be sent.
- How fast does the recipient need the cash?
- The location of both sender and recipient.
- Is money in bitcoin, or bank account, cash or digital wallet?
- Safety
Best money transfer services to use for business in Nigeria
Not one of these services are cheap, but some are more convenient, faster and cheaper. Having tried most of these methods one can only imagine how hard it is to decide.
PayPal
Doing Paypal transactions in Nigeria is a bit tricky. Paypal is only useful in Nigeria if there is a need to receive money but there are still few items to note about the service.
- It works best for small transfers below $500.
- Both sender and receiver must have functional emails and Paypal accounts.
- Money goes from Paypal account to PayPal account of sender and receiver. The only way the receiver gets cash is by transferring once more into their personal bank account. This could incur more charges.
- It is the easiest means to pay freelancers, but not those in Nigeria.
- A percentage of the money sent is taken by Paypal and it might be a bad idea for big transactions.
Western Union
There are over 4000 locations around the world that Western Union transactions can take place. Usually, money can be taken in cash in any bank in Nigeria. However, this service also allows the sender to send into the receiver’s bank account directly.
Either way, the receiver gets the money immediately but could take at least 24 hours depending on the internet. It might also be best to sign up with Western Union to try to avoid some bank charges.
- Charges can be high depending on the country.
- The chances of fraudsters intercepting the MCTN (secret pin) number is high.
MoneyGram
Works just like Western Union and there are at least 300,000 MoneyGram collection centres around the world. Most banks in Nigeria serve as pickup centres.
- Charges range from $5-$100 depending on the country and exchange rate.
- If money goes straight into receivers account, charges are likely to be less.
Azimo
Using Azimo to transfer Naira won’t work too well. Both receiver and sender must have domiciliary bank accounts which can be used for an Azimo transaction. Azimo is important because the money is also given to the receiver in foreign currency. This helps save them from the bank exchange rate.
WorldRemit
There are ways to send money fast but it is hard to beat the speed of Worldremit. This is the best way to send emergency money as the receiver can stand at any atm to receive instantly.
Skrill
Just like PayPal, Skrill is an online wallet but different because it allows people to receive money in Nigeria. Debit cards can be linked to skrill just like with PayPal and all transactions go neatly.
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