How to Send Money to Nigeria from the UK, US or Canada in 2026

Nigeria received an estimated $20.9 billion in diaspora remittances in 2023, according to the World Bank, making it the largest recipient on the African continent and the sixth largest in the world. In 2024, the Central Bank of Nigeria (CBN) reported that formal inflows through International Money Transfer Operators (IMTOs) reached $4.22 billion in the first half of the year alone — a 130% increase over the same period in 2023, driven partly by the naira's liberalisation under Governor Yemi Cardoso.

For Nigerians in the United Kingdom, United States, and Canada, choosing the right channel to send money home has never been more consequential. The gap between the official CBN rate and the parallel market rate has compressed significantly since June 2023, but it has not vanished. As of 10 June 2026, the CBN's NAFEM window quoted ₦1,580 per dollar, while street traders in Lagos and Abuja were exchanging at rates between ₦1,610 and ₦1,630. Every naira per dollar matters when you are moving thousands.

What Is the Cheapest Way to Send Money to Nigeria in 2026?

The answer depends on the sending country, the corridor, and whether the recipient needs naira in a bank account or cash at a pickup point.

Wise (formerly TransferWise) has become the benchmark for transparent pricing. Sending £1,000 from the UK to a Nigerian domiciliary account in USD incurs a fee of roughly £6.10 at mid-market rate, with funds typically clearing within one business day. Wise does not offer naira transfers directly, because the naira is not freely convertible; it settles in dollars to a USD domiciliary account, which the recipient can then convert locally.

Remitly competes aggressively on the US corridor. Sending $1,000 from the United States to a Zenith or GTBank account currently costs between $2.99 and $4.99 in fees, depending on speed. The Economy option (three to five business days) delivers a more competitive exchange rate; the Express option moves money within hours at a slightly thinner rate. Remitly disburses in naira at rates close to the NAFEM window.

Western Union remains the widest-reach option for cash pickup. Nigerians in smaller cities or rural communities — where bank penetration is lower — rely on its 6,000-plus agent locations across Nigeria. The trade-off is cost: a $500 transfer from Canada to a Nigerian bank account via Western Union carries fees of approximately CAD 4.99, but the exchange rate margin is typically 1.5% to 2.5% below mid-market.

MoneyGram operates a comparable network and is particularly competitive on the Canada-Nigeria corridor, often matching or beating Western Union on fees for bank deposits while offering a broader agent network in Ontario and British Columbia.

Is It Legal to Send USDT (Tether) to Nigeria?

This question has become unavoidable. Since at least 2022, a meaningful share of diaspora transfers to Nigeria has moved through stablecoin rails — primarily USDT on the Tron network (TRC-20), which settles in seconds for a fee of less than $1 regardless of the amount.

The legal picture is nuanced. The CBN lifted its blanket ban on crypto for banks in December 2023 and issued new guidance allowing financial institutions to operate virtual asset accounts under strict conditions. The Securities and Exchange Commission (SEC Nigeria) issued its Accelerated Regulatory Incubation Programme (ARIP) guidelines in 2024, bringing Virtual Asset Service Providers (VASPs) into a licensing framework.

Peer-to-peer (P2P) transfers of USDT between individuals are not explicitly prohibited, but they operate in a grey zone. The recipient in Nigeria typically sells USDT to a local P2P buyer — often via a platform registered outside Nigeria — and receives naira at rates that track the parallel market. The effective naira yield has historically been 1% to 3% above formal channels.

The risks are real. The EFCC has prosecuted individuals for unregistered VASP activity under the Money Laundering (Prevention and Prohibition) Act 2022. Binance's 2024 regulatory dispute with Nigerian authorities — which resulted in the temporary detention of executives and a $10 billion government fine demand — illustrated how quickly enforcement can escalate. Sending large sums via stablecoin without a licensed intermediary carries regulatory and counterparty risk that smaller, lower-frequency senders should weigh carefully.

For amounts below $500 equivalent, the transaction cost advantage of stablecoin rails is significant. For amounts above $5,000, the compliance exposure and the improved competitiveness of formal IMTOs since naira liberalisation make licensed channels the more prudent choice.

How Do UK, US and Canadian Bank Wires Compare?

Direct SWIFT transfers from a UK, US, or Canadian bank to a Nigerian commercial bank account remain an option, particularly for larger corporate or family transfers. The costs, however, are punishing at the retail level.

A standard international wire from a US bank (Chase, Wells Fargo, Bank of America) carries outbound fees of $25 to $45, plus an intermediary bank charge of $10 to $20, plus the receiving bank fee charged by Nigerian institutions (typically ₦5,000 to ₦15,000). The correspondent banking chain can take three to five business days.

UK Faster Payments do not extend to Nigeria; all transfers go via SWIFT. Barclays and HSBC charge £15 to £25 per outbound international wire. Halifax charges £9.50 for online transfers but applies exchange rate margins that erode value.

For transfers above £10,000 or $15,000, it is worth obtaining a quote from a specialist FX broker. These firms typically offer rates 0.5% to 1.5% above the rates available at retail banks, with fixed fees per transfer rather than percentage-based margins.

What Should You Know Before You Transfer?

Bank Verification Number (BVN): All Nigerian commercial bank accounts are linked to a BVN. Ensure you have the recipient's correct account number and bank name. Errors are common and reversals take weeks.

Domiciliary accounts: If you are sending USD, GBP, or EUR, consider directing funds to the recipient's domiciliary (DOM) account rather than a naira account. The recipient retains the currency and converts at a time of their choosing, which can be advantageous when the naira is under pressure.

IMTO licensing: Only CBN-licensed IMTOs are authorised to receive diaspora remittances and credit naira to local accounts. A list of licensed operators is published on the CBN website (cbn.gov.ng). Sending through an unlicensed platform creates both regulatory risk and recourse risk if the transfer fails.

FIRS and tax implications: Remittances received in Nigeria by individuals are generally not subject to Personal Income Tax under the Personal Income Tax Act (PITA), as they are not classified as income. However, large or frequent inflows may attract scrutiny from the Federal Inland Revenue Service (FIRS) if they are perceived as business revenue.

For a broader view of how the naira exchange rate is tracked across formal and informal channels, see our complete guide to the dollar-naira rate.

---

Regulatory note: The Central Bank of Nigeria requires all international money transfers to Nigeria to pass through CBN-licensed International Money Transfer Operators. The CBN's 2023 circular (FPR/DIR/PUB/CIR/003/067) sets out conditions under which virtual asset service providers may operate in the Nigerian financial system; individuals should ensure any platform they use holds the appropriate SEC Nigeria or CBN authorisation. The Cowrie is an independent editorial publication. We hold no financial services licence and nothing in this article constitutes financial or legal advice. Readers should verify current rates, fees, and regulatory status directly with their chosen provider before transferring funds.