How to Send Money from the USA to Nigeria

International money transfer platforms made things much easier for people sending money from the United States to Nigeria. But while MTPs are a great choice, they aren't the only option. Here's an overview of the top methods to send money from the USA to Nigeria.

Money Transfer Services

Many people decide to transfer money online. A money transfer company is the best choice for sending money to Nigeria. For starters, you can pick from a debit card, bank transfers, and other payment methods. Recipients have multiple options to receive money such as into their bank account, maximizing the odds you'll both find MTP transfers convenient.

These are online money transfer services, so you need an internet connection. You can use desktop PCs and laptops, but also apps on smartphones, tablets, and other gadgets. It takes a few clicks to register and finalize the transaction on these online money transfer services. Everything is 100% secure since MTPs encrypt transactions and use safe connections. You can be sure that you can make secure online money transfers with a money transfer company.

Money transfer platforms try to offer affordable fees. New customers can expect welcome benefits, and loyal users often have bonuses for referring a friend, using the service frequently, etc.

Wire Transfers

Wire money transfers have lost the majority of their users over the years. It's still available, but the slow speed and hefty pricing don't sound attractive.

It usually takes days for the money to reach the recipient bank account in Nigeria with a wire transfer. Money transfer platforms offer a faster way to send funds from the United States. Add the fact the fees are often lower, and the process is simpler, and it's clear why MTPs are the user favorite.

Bank Account Transfers

Many Nigerian banks, such as Union Bank or Fidelity, support bank transfers including interbank money transfers. But almost every third adult in Nigeria (29%) doesn't have a valid bank account to make a bank transfer. And although you'll easily find a bank in the US to send money to Nigeria, you can expect the bank transfer to take days.

Sending and receiving a bank transfer is likely to impose fees, making the bank transfer a bit expensive. It's better to go with money transfer platforms available in the USA than making a bank transfer, especially since many support bank transfer deposits to send money to Nigeria.

Challenger Banks

Neo-banks offer solely digital-based services and products. Alat, Mint, and Kuda are among the institutions offering digital banking in Nigeria. But their financial liquidity is questionable, making large sum money transfers risky.

Most money transfer platforms keep user funds in separate accounts, ensuring there's no risk when users send money to Nigeria. The odds are the service of moving money from the United States will be more affordable, too.

Mobile Apps and Payment Services

Apple Pay and Google Pay are popular in Nigeria, but for paying in stores and other retail locations. But for example, Google Pay only allows sending money from the US to friends and family in Singapore and India. However, it's not an option to send money to Nigeria.

Fortunately, money transfer platforms are aware that keeping up with the trends is imperative. The majority offers free apps for Android and iOS with the same conditions to send money to Nigeria from the USA. That means you can expect an affordable, simple, and fast way to deliver money to a Nigerian recipient or his bank account.

PayPal

PayPal was established in California, United States. It has over 20 years of history, and it's now available in over 200 countries, including Nigeria. PayPal offers fast and simple transactions in Nigeria.

The problem with PayPal is pricing. You'll notice the cost goes up to 5%, so it's better to go with money transfer platforms. The two options can deliver money to Nigeria equally fast, so the recipient could have it available into his bank account in minutes.

Money Transfers to a Pickup Location

Western Union and Wise are only some examples of international money transfer services that also have offline branches. You can use online MTPs to create an order and take money to the nearby agent. It's also possible to walk into the store and create orders there, but there's the hassle of going to the branch.

Pickup locations often have higher fees than online-based MTPs. It's also more convenient to use the internet since you can send money to Nigeria from the USA from any location.

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

The documents necessary are similar to sending money to any other country and include the following:

• Proof of ID. Online platforms will require uploading your ID card or passport. A photo must be visible, and the document shouldn't be passed the expiration date.

• Payment method and sum. Choose from Passbook, bank transfers, credit or debit card, or other payment methods. Make sure to have enough money to cover the sum to send and the applicable fees.

• Proof of money origin. For large sums, providing a salary statement, property sale contract, or another relevant document might be necessary.

• Recipient's details. You'll need the name, contact info, and bank account if you choose that transfer type.

Although there are three options for the recipient, the majority use location pickups and direct bank deposits. You'll find an overview of all the available options below!

Location Pick Up

With over 5,000 locations in the country, Western Union is a convenient option for this delivery method. Many money transfer platforms work with Access and other banks to secure cash payout in their branches in Nigeria. The recipient needs to collect cash, which makes large money transfers risky.

Direct Bank Deposits

Some banks don't even require the recipient to have a bank account since they'll create one for them when you send the money from the United States. Bank deposits are convenient since they don't require the user to do anything to have the money available. They can collect it via ATM or in a bank branch. The recipient can collect the money in portions or all at once, depending on their preference.

Airtime Top-up,

Unfortunately, not many providers offer this method. But if you find one, it's possible to top-up the recipient's prepaid mobile card from the United States. The recipient must ensure the mobile money service is available with their provider.

What Do You Need to Receive Money in Nigeria?

While discussing the transaction with the receiver, it's wise to note they might need the following:

• Proof of ID. It must be a valid ID card or passport issued by the Nigerian government.

• Sender's info. Some platforms require the sender's name, country, and other details.

• Transaction details. Each transfer has a unique TRN – Transaction Reference Number. Some platforms require the receiver to provide it to collect the money.

WorldRemit is a nice option to transfer money as it works with reputable Nigerian institutions, such as Fidelity, Zenith, FirstBank, and Union bank. They complete 90% of money transfers on the same day, regardless of the method used. A nice feature of WorldRemit when you transfer money online is that you have a tracking feature that allows real-time monitoring of the transaction status.

Advantages

• 95% of cash pickup transfers are available in three minutes

• Excellent choice if you only plan to send money to Nigeria a few times

• Phone number dedicated to the US market

Disadvantages

• The FAQ section could contain more information

• No airtime top-up option to send money to Nigeria

3 Steps to Start Using the Provider

1. WorldRemit has a dedicated page to send money to Nigeria.

2. Adjust the amount and currency.

3. Register, enter the code 3FREE to activate no-fee transfers, and finalize the transaction.

Best Alternatives to transfer money

• Wise, Instarem, PayPal

Western Union works with the First Bank of Nigeria. It transfers funds to the receiver's bank account instantly, making WU the fastest option to send money to Nigeria. While you have the option to pay cash in-store, it comes with an additional fee. Referring to a friend bonus and earning loyalty points are among the extra benefits for WU customers.

Advantages

• Over 5,000 pickup locations in Nigeria

• Reliable mobile app to send money on the go

• Dedicated customer care phone number for US customers

Disadvantages

• Fees are high after the initial money transfer they offer for free

• Bank account transfers take longer

3 Steps to Start Using the Provider to transfer money

1. Head to Western Union's website.

2. Choose the payment and receiving options and the amount to send.

3. Finalize the transaction.

Best Alternatives to transfer money

• Instarem, Wise, Paypal

Website loading times are fast, and you can also use Remitly mobile apps for Android and iOS. Although the pricing is transparent, you need to register to see the actual exchange rates. When you transfer money with Remitly, you will be prompted to select a delivery option.

Remitly Money Transfer has a live chat available 24/7, and you can talk to customer support in English and Spanish.

Advantages

• Guaranteed delivery time or a fee refund

• A special exchange rate for the first transfer

• Partnership with reputable banks and financial institutions in Nigeria

Disadvantages

• Fees increase when sending larger sums

• Referring a friend is only available for those residing in the same country

3 Steps to Start Using the Provider

1. Visit Remitly's page to send money to Nigeria.

2. Register an account and adjust the desired parameters.

3. Complete the transaction.

Best Alternatives to transfer money

• WorldRemit, Wise, Instarem

Many platforms are ready to deliver money to the recipient in Nigeria in minutes. However, the delivery time might depend on how long the deposit takes, which transfer option you selected and whether the receiving institution needs to process the payment. These are services that can send money to Nigeria quickly!

It's best to use Visa or MasterCard since they secure instant deposits. It will allow international money transfer platforms to process your transaction immediately. Some services come with Standard and Express options. The latter is more expensive but secures instant delivery.

It's common or international money transfer services to offer free initial money transfers. Some platforms will even give up on their fees on the first three money transfers. If you observe all relevant factors, here are the cheapest MTPs to send money to Nigeria!

Most platforms earn by applying transaction fees and exchange rates below the mid-market level. The rates vary on the platform, and the transfer charges depend on the payment method, too. The above money transfer services try to keep their fees affordable, regardless of the transfer options you select.

MoneyZine strictly focuses on secure international money transfer services that allow users to send money from the USA to Nigeria. While the MTPs recommended on this page are legit, some go the extra mile to make the users feel safer. Here are the platforms most dedicated to customer security!

Some platforms offer extensive guides on recognizing and avoiding scams. Thanks to that, you can recognize fraud on time and report it to customer care. Most MTPs keep users' funds in separate accounts from those that serve to run the platform. Some platforms don't even store user info on the company's servers for additional security.

Money-sending apps are convenient if you need to send money online from the USA to Nigeria over a smartphone or tablet. These tools support moving money internationally from any location with an internet connection. Here are the top apps to send money from the US to Nigeria on Android and iOS!

You can download most apps from the official app store on your phone or the company's website. The apps are free and remain bug-free, which a long list of positive reviews and ratings on app stores confirms. Best apps to send money to Nigeria allow using the same credentials as when you send money online via the company's site.

Money transfer platforms and other financial institutions need a license from the Central Bank of Nigeria (CBN) to operate in this country. CBN regulates Nigeria's financial policies, and the latest change was the implementation of the Naira 4 Dollar Scheme.

This scheme has two major areas:

• No more payouts in NGN, indicating you can only send money online from the United States to Nigeria.

• An incentive where the recipient gets NGN5 for every dollar sent to Nigeria.

The scheme was only temporary at first, but in 2021, the CBN decided it would continue indefinitely.

The first consideration is the US regulations. According to local laws, it's necessary to report cash transactions that exceed USD 10,000 to the IRS. This refers to the amount sent within a year, so it's best to consult a tax expert to ensure you do everything by the book.

Most money transfer platforms have minimum and maximum sending limits. For example, WorldRemit and Western Union impose a USD 5,000 restriction per transaction. To send money from the USA to Nigeria, Remitly allows sending USD 1,500 daily, but you can increase that to USD 6,000 if you activate the Tier 3 membership status.

Remitly's fees increase with higher sums sent from the USA to Nigeria. The same applies to Instarem, Wise, and other money transfer platforms. But you might encounter a service ready to give up on its fees if you send a large amount.

Transaction costs often depend on the payment method. Card deposits tend to be more expensive than bank transfers, but it depends on the service. Exchange rates are another thing to consider since unaffordable rates often lead to the transaction costing more than you expected.

The most common reason to send money online from the USA to Nigeria is to support a family member. Most ex-pats send funds weekly or monthly. Personal transactions might include birthday gifts, housing necessities, paying someone for school, etc.

While individual money transfers are more frequent, it's also possible for businesses to send money to Nigeria. However, the process requires a business account, which takes longer to register.

The Central Bank of Nigeria issued licenses to all money transfer services mentioned on this page. MoneyZine only recommends platforms doing money transfers and business legally in the USA and Nigeria. But apart from valid licenses, offering maximum security to users is imperative.

Using encrypted transactions and secure connections like TLS and HTTPS is common for money transfer platforms. These money transfer services have teams monitoring the servers and ensuring the security is at a maximum level 24/7.

From the sender's perspective, you might need to report the transaction for large sums sent from the USA to Nigeria. There aren't any applicable taxes by default on money transfers, and the same is true for Nigerian recipients.

The only taxable international transactions in Nigeria are business-related. So, if you pay for a service or product, the recipient should report the transaction to local authorities. Otherwise, they risk a 10% penalty.