Cheapest Ways to Send Money from the UK to Nigeria in 2024

Remittances from the UK are at a high level because it's simple to send money to Nigeria online via international money platforms. You also have a few other alternatives to send money to Nigeria from the United Kingdom, so let's list and compare them below.

Money Transfer Services

money transfer services, also known as Money transfer platforms (MTPs) dominate the international transaction market. These services revolutionized the market and simplified transfers overseas. You can pick from many MTPs when sending money from the UK to Nigeria, such as Remitly, WorldRemit, or Ria Money Transfer. You can easily transfer money with these reliable money transfer platforms.

Regardless of which platform you choose, it shouldn't take more than a couple of minutes to send money to Nigeria from the United Kingdom. You can do that from the service's website or mobile app. MTPs use encrypted transactions and the latest security measures to protect user data.

Multiple payment methods are available to send money to Nigeria from the Untied Kingdom, and the transfer fees vary. However, they are often more affordable than the alternatives. Many platforms offer benefits to loyal customers, such as discounts and favourable rates.

Wire Transfers

A small portion of UK users still go with wire transfers, and you should only use them if there's no alternative to transfer money overseas. These transactions are a hassle for the user and often come with hefty flat fees.

After you send money from the United Kingdom, it takes days to be available to the recipient in Nigeria. It's much faster with MTPs, which can have the funds sent in minutes, and with lower transfer fees.

Bank Account Transfer

The First Bank of Nigeria and GTBank are among only a few Nigerian financial institutions that offer interbank transfers to send money overseas. You can use many UK banks to send money to those facilities, but it's better to pick an institution where you have an account with funds available.

Your bank might charge a fee and offer an unfavourable transfer fee to send money overseas from the United Kingdom. Add the charge taken by the receiving bank, and you end up with an expensive transaction. Money transfer platforms have simpler and more affordable pricing. You'll even find MTPs supporting bank deposits when sending money to Nigeria.

Challenger Banks

Living in digital times led to challenger banks, such as Mint and Alta, forming in the world market. But a limited selection of these services supports international transfers.

Challenger banks often lack the solvency for large transactions, making sending money from the UK to Nigeria risky. Until they develop to a higher level, it's better to go with money transfer platforms.

Mobile Apps and Payment Services

While Apple Pay and Google Pay are available in Nigeria, their primary purpose is domestic transfers. They aren't a wise choice for international transactions, which is why money transfer platforms developed smartphone apps and mobile-friendly versions of their sites.

Thanks to MTPs, you can send money to Nigeria from the United Kingdom on the go. The interfaces are intuitive, and you can transfer funds from the UK with several clicks.

PayPal

Established in the US in 1998, PayPal has become the leading e-payment service worldwide. Users from the United Kingdom can use it to transfer money to Nigeria in seconds.

The problem is PayPal will charge its speed with harsh fees. They aren't comparable to MTPs, and the same applies to exchange rates, which are more favourable at the money transfer platforms.

Money Transfers to a Cash Pickup Location

Although money transfer providers are primarily online services, some support sending money from cash pickup locations. Those could be the company's branches, partner stores, etc.

This method requires heading to the branch, although you can previously create an order online. But taking cash to the collection point is both time-consuming and risky, so online options are a better choice for sending money from the United Kingdom to Nigeria.

What Do You Need to Send Money from the UK to Nigeria?

If you use a money transfer platform, you'll need a registered account. Here are the other documents that might be necessary:

• An ID to confirm your identity. Uploading a photocopy of your ID card or passport issued by the UK government is necessary when using MTPs. The document needs to come with a clear photo.

• The payment method and sufficient funds. You should consider the fees and exchange rates since you might need to pay more than you planned to send.

• Recipient's details. It's necessary to specify the receiver's info and delivery method details, such as the bank account.

• Documents to confirm the money source. It's a part of an anti-money laundering program and could involve a salary statement, a contract for selling a property, etc.

The most common options for collecting sent money are available in Nigeria. Once you transfer the money from the United Kingdom, here's how the receiver can collect it!

Location Pick Up

Most Nigerian banks allow cash collections when you send funds via internet money transfer platforms. There's no need for the recipient to have an account with that bank.

It's also possible to use Western Union or an MTP that has branches available in Nigeria. The recipient should check if they have an eligible location nearby. There's also the issue of collecting cash, so caution is advised when picking up large amounts.

Direct Bank Deposits

Approximately seven in ten adults in Nigeria have a bank account. The number drops to four in rural zones, and banks might be far away. But with home delivery not being an option, bank accounts might be a convenient way to receive money from the UK in Nigeria.

The recipient can pick up the entire sum or only collect a portion at the chosen bank. Some banks might open an account for the receiver for international transactions. For example, the First Bank of Nigeria will do that if you use Western Union to send the money.

Airtime Top-Up and Mobile Money

These two require the recipient to have an activated mobile money service with their chosen provider in Nigeria. With limited MTPs that offer this possibility, you can send money to Nigeria to their mobile phone. There's no need for any confirmation from the recipient, which is convenient.

What Do You Need to Receive Money in Nigeria?

The receiver will need the following information:

• An ID to confirm the identity. It needs to be a valid document issued by the local government, and it must contain a photo.

• Bank account. Some banks will open a bank account for this purpose, but check if that's an option first.

• Transaction reference number. It's a common way of collecting cash pickups. The sender gets TRN after transferring the money, and they should send it to the recipient.

• Sender's info. Name, country, and additional info might be necessary, depending on the provider.

Remitly has a special offer for UK customers since sending money to Nigeria comes free from any fees, regardless of the sum. The rates are favourable and not much below the mid-market level. Remitly works with GTBank, Polaris Bank, and other reputable institutions in Nigeria.

Advantages

• Dedicated mobile apps for Android and iOS

• Helpful customer support is available 24/7

• Transfers are typically delivered within minutes

Disadvantages

• You can only refer friends from the UK to receive a bonus

• Additional verification is necessary to increase sending limits

3 Steps to Start Using the Provider

1. Check out the current GBP to USD rate offered by Remitly.

2. Register an account and verify your identity.

3. Enter the amount and payment method and follow the instructions to finalize the transaction from the United Kingdom.

Best Alternatives

• Wise, Western Union, TransferGo

The new website update accelerated page loading times and simplified sending money via Ria Money Transfer from the United Kingdom. You can use mobile apps to send money to Nigeria on the go. The registration process is simple, and you have real-time tracking available.

Advantages

• Somewhat better rates than the competitors

• Transparent pricing overview and no hidden fees

• Most card transfers occur within minutes (credit or debit card)

Disadvantages

• Limits are GBP500 per transaction and GBP4,999 monthly

• No bank transfers as the deposit method

3 Steps to Start Using the Provider

1. Visit the official Ria Money Transfer site or download the app.

2. Enter the transaction details and proceed to registration.

3. After signing up, finalize the transaction.

Best Alternatives

• Western Union, PayPal, Wise

WorldRemit lists GTBank, FirstBank, access, and other financial institutions as their partners in Nigeria. You can even choose the bank where to deliver the money to the recipient. WorldRemit has a local phone number for UK users who need customer assistance. The ordering process is simple, so even newbies shouldn't have problems with how the website works.

Advantages

• Fast transfer times rarely take more than minutes

• Cost overview available even before registration

• Dedicated iOS and Android mobile apps

Disadvantages

• Fees vary depending on the chosen bank

• Exchange rates are a bit worse than with some competitors

3 Steps to Start Using the Provider

1. You can check the full transfer calculator at WorldRemit's website.

2. Sign up for an account.

3. Finalize the transaction with the desired payment method.

Best Alternatives

• Instarem, PayPal, TransferGo

The fastest money transfers from the United kingdom to Nigeria are almost instant. You'll often see MTPs mentioning your money will be available within three or 30 minutes. These platforms do their best to honour that timeframe and process your transactions immediately!

Transaction speed could depend on the chosen method. Some platforms take longer for bank account transfers in from the United Kingdombut, the duration for card payments is instant compared to a bank transfer. Money transfer providers also have standard and fast transaction options. The latter takes less time but might come with a higher fee.

Money transfer providers profit from exchange rates offered and transaction fees. Some platforms are ready to give up on charging the first or several initial transfers. Others offer discounts and benefits that enable loyal customers to save like very few cheapest providers in the United Kingdom. Here are the cheapest providers to send money from the UK to Nigeria for one-time and frequent senders!

As the sender, you'll have multiple payment methods available. But the option you select might affect the fees – card payments are often more expensive than bank transfers. Some platforms require using promo codes to activate a discount, so don't forget to enter them during the ordering process.

MoneyZine makes sure all platforms listed on this page have a valid license from the FCA and CBN. While all providers get relevant licenses, some go the extra mile to maximize security. It's a way of attracting users, and here are the safest services for sending money from the UK to Nigeria!

Offering real-time transaction tracking has become a common feature. Users are at peace when knowing the transfer progress at each moment. Some providers offer a detailed guide on how to recognize fraud and hotline numbers to report it. Another safety feature is offering guaranteed rates. It ensures users can think about whether to go through with the transaction without the rate changing in the meantime.

Trends show most users switched to smartphones for internet use, so offering iOS and Android apps have become a new trend for money transfer services. Here are the top MTP apps if you want to send money from the UK to Nigeria on the go!

Being online is necessary to install and access these apps on the desired device. You can download them for free. It only takes a minute to get everything ready, and you can use an existing account with that platform. The apps above work flawlessly, and there's no risk of crashing in the middle of the sending process.

The crucial financial authority in the country is the Central Bank of Nigeria. It issues licenses to money transfer providers and other financial institutions and services in the country.

Among other things, CBN is in charge of the foreign exchange policy. It recently implemented the Naira 4 Dollar Scheme and decided to keep it indefinitely. The scheme is favourable for the recipients. For every USD 1 sent to Nigeria, the receiver will get NGN5 as an incentive.

There's no legal restriction on how much money you can send from the United Kingdom to Nigeria. However, if you send a large amount, or the transactions happen frequently, it might raise a red flag with the HM Revenue and Customs (HMRC) and the Financial Conduct Authority (FCA). It might be necessary to provide additional documents and wait for extra checks to ensure you are in line with anti-money laundering and tax regulations.

Money transfer platforms might have restrictions per transaction, day, or month. These could be as low as GBP 500 but vary on the service.

Apart from setting customized exchange rates, money transfer platforms impose transaction fees. Some platforms, such as Remitly, give up on charging all transactions from the UK to Nigeria. But others only offer free transfers for the first (Western Union, Ria) or initial three (WorldRemit) transactions.

The fees often vary on the payment method. Depositing with a card could cost double as much as using a bank transfer. You could also pay more if you choose a faster transaction option on some platforms.

Nigerians who are temporarily or permanently in the United Kingdom often send money home to their families in Nigeria. Personal transactions are often regular to help support family members. Other gift types include birthday and anniversary presents, paying tuition, etc. These are all personal transactions, and you can execute them from an individual account.

You'll need a business account to send money to Nigeria as a company. Many platforms offer this option, but the registration process and regulations are different. That means you could end up paying higher fees and using different rates for business transfers.

The Financial Conduct Authority (FCA) is the main regulatory body in the UK's financial industry. Most MTPs mentioned on this page got a license from that authority, as well as the Central Bank of Nigeria.

Secure money transfer platforms only use TLS, HTTPS, and other safe connections. Many providers use multi-layer security and avoid storing user info on their servers. It contributes to the trustworthiness and the company's reputation.

Nigerian authorities only tax business transactions. The recipient should report any transfer to local authorities, or they could face fines and other penalties. But there are no applicable taxes on personal transactions, which is great.

As for the senders, you don't have to worry. The UK government doesn't impose any taxes when sending money overseas, and you only need to provide additional documentation for large sums to prove the origin of the funds.