Send money from Canada to Nigeria
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Today's best rates to Nigeria
As of 6 July 2026, sending £1,000 to Nigeria, your recipient gets the most with Wise: 960,052.70 NGN — the best of 2 providers compared.
| Provider | Rate | Fee | Recipient gets | Speed | |
|---|---|---|---|---|---|
968.50 0.45% better | £8.72 | 960,052.70 NGN | Within 2 days | Send | |
967.48 0.35% better | £33.90 | 934,682.25 NGN | Minutes to days | Send |
When you send money home to Nigeria, the cheapest route is almost always a specialist money-transfer app or company rather than your bank. The cost that matters most is hidden in the exchange rate: a bank typically keeps 2% to 5% in the rate, on top of any fee — so always judge a provider by the amount that actually arrives, not by a "no fee" claim. Below is exactly how the money reaches Nigeria, what it really costs, and how to sidestep the most expensive mistakes.
Canada is home to a fast-growing Nigerian community — the 2021 Census recorded that 7.1% of Canada's Black population was born in Nigeria, and Nigeria was the fifth-largest source country for new immigrants arriving between 2016 and 2021 (40,355 of them); an older 2016 figure put the Nigerian-ancestry population at about 64,900.
The community is concentrated in Ontario, especially the Greater Toronto Area, with growing groups in Calgary, Edmonton and Winnipeg, and is heavily made up of skilled workers and students.
That makes the Canadian-dollar-to-naira route a busy, competitive corridor — and on most amounts the exchange-rate margin matters far more than any headline fee: a 0.5% difference in the rate on C$1,000 is roughly C$5 of naira, usually more than the fee gap between providers.
Because you are sending Canadian dollars, the cheapest options here are the providers that genuinely serve Canadian senders — Wise, Instarem and Western Union — not the UK-only banks and brokers.
Sending from Canada: what you need
Sending from Canada is straightforward once you know what your recipient's bank in Nigeria needs and how to fund the transfer in Canadian dollars. The first transfer takes a few minutes to set up; later ones are near-instant.
Compare on the naira that actually arrive
Use the live comparison above. It shows only providers that serve Canadian (Canadian-dollar) senders, ranked by how many naira land in Nigeria after both the exchange-rate margin and any fee — the only number that matters.
Get your recipient's 10-digit NUBAN account number and bank
Nigeria does not use an IBAN. To pay into a Nigerian bank account you need the recipient's 10-digit NUBAN (Nigeria Uniform Bank Account Number) and their bank name; the money is delivered over NIP, the NIBSS instant-payment network, usually in minutes.
Direct deposit to a mobile-money wallet such as OPay or PalmPay is a growing alternative, and cash pickup in naira at agent locations is also offered. Confirm the details with your recipient before you start.
Verify your identity once
A Canada-resident sender verifies identity on first use to meet anti-money-laundering (KYC) rules — Canadian money-services businesses are regulated by FINTRAC, so expect to provide valid government-issued photo ID (a passport or driver's licence) plus proof of address.
Verification is required on electronic transfers of C$1,000 or more. It takes a few minutes and is a one-off.
Fund the transfer in Canadian dollars and send
Pay from your Canadian bank account by Interac e-Transfer (fast and very common), by bank/EFT transfer, or by debit card (usually instant). Avoid funding with a credit card — issuers often treat a money transfer as a cash advance, with high fees and interest from day one.
Most transfers to Nigeria arrive within minutes over NIP; you will get a confirmation by email or app.
Funding the transfer from Canada by Interac e-Transfer is fast and widely accepted; a direct bank/EFT transfer or a Canadian debit card works too. Avoid a credit card — most issuers treat a money transfer as a cash advance, adding a fee plus interest from day one.
There is no Canadian tax simply for sending money abroad: Canada has no gift tax and no reporting threshold for gifting cash to family.
Separately, under Canada's anti-money-laundering rules a provider must identify the sender on electronic transfers of C$1,000 or more, and report transfers of C$10,000 or more to FINTRAC — this is handled by the provider and is not a tax or a limit.
On the Nigerian side there is no levy or tax on receiving a personal remittance for family support.
How the money reaches Nigeria
How your recipient gets paid
Nigeria does NOT use an IBAN. You need the recipient's 10-digit NUBAN account number and their bank name; the payout is usually delivered in seconds over NIP (NIBSS Instant Payment).
How the money is delivered
Once your pounds are converted, the money is delivered locally inside Nigeria. You don't choose the network — the provider does — but here is what is used.
Ways your recipient can receive it
Most providers can pay into a bank account (10-digit NUBAN) via NIP, fintech wallet (OPay, PalmPay, Moniepoint) or cash pickup. The right choice is usually whichever is cheapest and fastest for your recipient. Cash pickup is the fallback where a bank account or wallet isn't available.
What you actually pay to send money to Nigeria
Since the naira was floated in June 2023 the rate moves with the market, so the provider's spread — not a fixed official rate — is where most of the cost now hides.
The exchange-rate mark-up
The big one. Banks and some apps quote a rate a little worse than the real mid-market rate and keep the difference — often 2% to 5%. Because it is a slice of the whole amount, it usually dwarfs any upfront fee.
Correspondent-bank fees
An ordinary bank wire can pass through one or two intermediary banks, each able to take a small cut before the money arrives. Specialists using local payment networks usually avoid this entirely.
"No fee" hiding a poor rate
A headline "zero fee" means little if the rate is weak. Judge an offer by the money that actually arrives, not by whether a fee is shown — the comparison above ranks providers exactly that way.
The float, and the closing gap with the street rate
Nigeria floated the naira in June 2023, so the rate now moves with supply and demand rather than being set by the Central Bank.
For years a wide gap ran between the official rate and the informal 'parallel' street rate; reforms have since all but closed it — the premium fell from over 60% in 2023 to roughly 2% by late 2025, and the two were near-identical by mid-2026.
Licensed providers must pay out at official, traceable rates, so a deal promising a far better 'black-market' rate is now a red flag, not a bargain. Judge providers on the naira actually delivered.
How you pay from the UK changes the cost
Funding the transfer from the UK by bank transfer is free and clears in one to two working days; a debit card is usually free and instant. Avoid a credit card — most UK card issuers treat a money transfer as a cash advance and add around 2–3% plus interest from day one.
You verify your identity just once on first use — a UK address proof plus photo ID — which takes a few minutes.
Watch correspondent-bank fees on larger sums
On bigger transfers — say over £5,000 — the way the money travels starts to matter. Sent by old-style SWIFT bank wire it can pass through one or two intermediary 'correspondent' banks, and each can take a slice before it lands, so the naira that arrives falls short of the quote.
The specialist providers in the table above mostly pay out through a local Nigerian bank or fintech partner — straight into the recipient's NUBAN account over NIP — which avoids those intermediary deductions.
Your recipient receives naira, not dollars
Your recipient receives naira, not dollars
This catches people out. Under Central Bank of Nigeria rules, every licensed International Money Transfer Operator must pay diaspora remittances out in NAIRA — they may no longer hand the beneficiary foreign cash.
From 1 May 2026 the CBN tightened this further: operators settle through dedicated naira accounts and convert at live market (Bloomberg) rates, and the old 'Naira-4-Dollar' ₦5-per-dollar bonus has ended.
In practice it is simpler — the money lands as naira straight in your recipient's NUBAN account, usually in minutes over NIP. If they specifically want to hold dollars, they need their own domiciliary (FX) account and would convert separately.
How to avoid fraud when sending money to Nigeria
On any large transfer the biggest risk is rarely the exchange rate — it is criminals getting between you and the money. These simple rules are worth knowing before you send.
Fake credit-alert scam
Rule: do not act on a 'credit alert' text or screenshot alone. Confirm money has actually cleared in your own banking app before releasing goods or sending anything back — fake alerts are the most common trick.
BVN / OTP scam
Rule: never share your BVN, card PIN or a one-time code to RECEIVE money. No legitimate transfer ever needs your PIN or OTP to pay you — those only authorise money leaving your account.
"Wrong transfer, please refund" scam
Rule: if you must return money, make a fresh transfer yourself to details you trust — never use a reversal link, refund button or payment request the other person sends you.
Advance-fee / "release fee" scam
Rule: no bank or operator charges a fee to 'release' an incoming remittance. The payout is automatic. Anyone demanding an upfront fee to free your money is a fraudster.
If you are a victim of fraud, report to the CBN Consumer Protection Department at cpd@cbn.gov.ng, or report financial crime to the EFCC.
Is money sent to Nigeria taxed?
What the rules say
inward remittances are tax-free for the person receiving them; under Central Bank of Nigeria rules they are now paid out in naira, not foreign currency
Keep your paperwork
On a large transfer the UK firm must run a source-of-funds check — that is a compliance step, not a tax. Keep evidence of where the money came from (a sale statement, pension or investment paperwork, or bank statements) and a big transfer moves through far more smoothly.
When is the best time to send money to Nigeria?
For a one-off transfer the rate on the day is what counts — and it moves constantly. The aim is less about guessing the perfect moment and more about removing risk on payments you already know are coming. As a guide, once the money is sent usually minutes — most providers pay straight to the NUBAN account over NIP, day or night.
Demand is sharply seasonal. It peaks around year-end 'Detty December', when the diaspora flies home for the holidays and money pours in for celebrations, weddings and family gifts.
Operators know that window and can quietly widen their margin into the rush, so if you can, send a little ahead rather than at the peak. The naira floats freely and moves a lot from week to week, so the rate you get is genuinely market-driven — lock in when it looks good rather than waiting.
Lock the rate for a known date. If a payment is weeks away, many specialists let you fix today's rate now (a forward contract), so a sudden market move can't blow a hole in your budget before the money is due.
Set a target with a rate alert. For flexible transfers, you can set the rate you want and be notified (or trade automatically) when the market reaches it — useful when you have time on your side and no fixed deadline.
The costliest mistakes when sending to Nigeria
A handful of avoidable slips account for most of the money people lose. Each is easy to sidestep once you know to look.
Defaulting to your bank without comparing. The bank's rate mark-up usually costs far more than any fee, and it is easy to miss because it is built into the rate rather than shown separately.
Judging by the fee, not the amount delivered. A "no fee" offer can still be the worst deal if the rate is poor. Always compare on what actually arrives.
Mistyping the account or bank code. If the account details are wrong the transfer can bounce back after a delay, or reach the wrong account. Always check them against details your recipient sent in writing.
Trusting bank details that arrived by email. Payment-diversion fraud is a real risk — always confirm the receiving account by phone on a trusted number first.
Using an unregulated or cold-calling firm. Check the company on the FCA Register before you move any money, and never act on an out-of-the-blue offer.
Mistyping the 10-digit NUBAN account number. Nigerian payouts go to a 10-digit NUBAN account over NIP, and good apps show the account holder's name back to you before you confirm. One wrong digit can send the money to a stranger's account, and instant transfers are very hard to claw back. Always check the name that pops up matches your recipient before you hit send — if it doesn't match, stop.
Assuming your recipient can collect dollars in cash. Money-transfer operators must now pay diaspora remittances out in naira, not foreign currency. If your recipient specifically needs to hold dollars — for school fees abroad, savings, or a big purchase — they need their own domiciliary (FX) account and would convert separately. An ordinary transfer lands as naira in their account, so agree which they actually want before you send.
How do most people send money to Nigeria?
For most people sending money home, the simplest and cheapest route is a specialist money-transfer app or company paying straight into the recipient's bank account (10-digit NUBAN) via NIP. Judge every provider by the amount that actually arrives — and confirm the receiving details before you send.
Frequently asked questions about sending money to Nigeria
No — not for a normal remittance. Since the Central Bank of Nigeria's directive taking effect on 1 May 2026, licensed money-transfer operators must pay inbound remittances to the recipient in Nigerian naira; the previous option of receiving US dollars has been withdrawn.
The same rules require operators to align their rates with the prevailing market rate, so compare providers on the naira your recipient actually receives.
No. Canada has no gift tax and no reporting threshold for gifting cash, so ordinary family support — for living costs, education or healthcare — is not taxed when you send it.
Your provider will report transfers of C$10,000 or more to FINTRAC for anti-money-laundering monitoring, but that reporting does not trigger a tax. On the Nigerian side, a personal remittance received for family support or as a gift is not taxed in the recipient's hands. This is general information, not tax advice.
Usually within minutes when it is paid into a Nigerian bank account or mobile wallet over NIP (the NIBSS instant-payment network).
Transfers funded by debit card or Interac e-Transfer can be instant or same-day; a transfer funded by a slower bank/EFT payment may take one or more business days to clear before it leaves Canada. Older-style SWIFT bank wires are slower still, typically one to five working days.
Canada places no exchange-control limit on personal transfers; each provider sets its own per-transfer limit, and your identity must be verified on electronic transfers of C$1,000 or more under FINTRAC rules.
Nigeria places no limit on inbound personal remittances received through a licensed operator — though under the Central Bank of Nigeria's rules those operators must now pay out in naira and settle through designated naira accounts at Nigerian banks.
No. Nigeria does not use IBANs. You need the recipient's 10-digit NUBAN account number and their bank name.
Most modern providers deliver straight to that account over NIP (NIBSS Instant Payment) in seconds. For the international leg, the bank's SWIFT/BIC may be used behind the scenes.
Naira. Central Bank of Nigeria rules require money-transfer operators to pay diaspora remittances out in naira — they can no longer hand over foreign cash.
Since 1 May 2026 they settle through dedicated naira accounts at live market rates. The money lands as naira in the recipient's NUBAN account.
To hold dollars, they need their own domiciliary account and would convert separately.
Almost always a specialist money-transfer company rather than your bank. Compare providers by the amount that actually arrives in naira, counting both the exchange rate and any fee.
Since the naira floated, rates are market-driven, so the provider's spread is where most of the cost sits — see the live comparison above.
Usually minutes. Most providers pay straight to the recipient's NUBAN account over NIP, which runs day and night, including weekends.
The slower part is normally the checks on the sending side before the money leaves.
No. Inward remittances are tax-free for the person receiving them. This is general information, not tax advice.
Often yes — those fintech accounts have NUBAN numbers too, so they can receive over NIP just like a bank. A traditional bank account works the same way. Cash pickup is available as a fallback where neither is possible.
No. The CBN's old ₦5-per-dollar 'Naira-4-Dollar' incentive, which paid recipients a small top-up for inflows through licensed channels, ended alongside the move to dedicated naira settlement accounts on 1 May 2026.
Don't choose a provider expecting that bonus — compare on the naira actually delivered instead.
There is no UK legal cap on personal transfers. Each provider sets its own limit — Wise allows £1m+ once you are fully verified, while others range from about £10,000 to £50,000 per transfer.
Nigeria puts no limit on personal remittances received through a licensed operator; the money simply lands as naira in the recipient's account.
No. Sending money abroad from the UK is not a reportable tax event, and there is no UK gift tax. If the money is income you have already paid tax on, or a personal gift, there is nothing to declare.
For large transfers it is worth keeping a note of where the money came from, in case your own UK bank asks.
Be careful here — Nigerian payouts run over NIP and are usually instant, which makes them very hard to claw back once sent. Good apps show you the account holder's name before you confirm: always check that name matches your recipient, and stop if it doesn't.
A wrong 10-digit NUBAN can send the money to a stranger, so verify every digit and the bank name before you submit rather than relying on a recall afterwards.
Our sources & how we keep this current
Last updated: June 2026. The live rates above refresh automatically, and we review the rest of this guide every month — updating it whenever the rules on payments, tax or regulation change.