The Central Bank of Nigeria recently placed restrictions on Nigerians receiving money transferred from abroad in naira. We will now only be able to collect those funds in dollars. This new rule means that digital transfer services such as TransferWise and Sendwave cannot be used to remit money to Nigerians in this way.
Read more about Finance
This policy change introduces some difficulty for a lot of people, who have become accustomed to getting paid in naira by family and friends from beyond the country’s shores. Traditional international cash transfer options often come with hassles, including trips to busy banking halls, self-identification, and the need to convert the foreign currency into naira once it’s been collected.
Thankfully, there are other relatively easy ways that Nigerians can receive foreign remittances. What follows is a roundup of these routes.
Cryptocurrencies like Bitcoin and XRP have become an attractive vehicle for sending and receiving money across international boundaries. Numerous crypto platforms allow their users to transfer money this way.
Here’s how it works. Using a crypto platform, the sender converts their money (say, dollars) into a cryptocurrency. They can specify the amount of money they want to send (valued in terms of the cryptocurrency they have selected), and wire to the recipient’s crypto wallet. The receiver may then convert the crypto into their local currency (naira).
All that’s required is for both parties to have a crypto wallet.
You can find out more from the platforms that offer this service. The more popular ones include Coinbase, Binance, Luno, Roqqu Pay, and Quidax.
Skrill is an international digital payments solution. It’s frequently used by freelancers and other businesses to receive payments from foreign clients. It also has a personal account service that makes cross-border money transfers between individuals possible.
With it, you can shop on global online stores, and purchase cryptocurrencies.
If you’re transferring money to a recipient via Skrill, you can either send it to their Skrill account (if they have one) or directly to their local bank account. However, you may want to go with the former option to avoid the new restrictions on receiving remittances in naira.
When a Skrill user abroad sends money in their currency (dollars, Euros, etc), your Skrill account will receive it in naira. You may then transfer that money to your bank account, or withdraw it directly using a Skrill Prepaid Mastercard (you can apply for one).
Find our comprehensive listings of businesses in Nigeria here https://businesses.connectnigeria.com/
Note that you need to have a Skrill account to use these services. You can sign up for one on their website. Be sure to verify your account using a recognized ID (National ID Card, International Passport, or Driver’s License) and utility bill (less than 90 days old) to enjoy the full range of services available.
Switch By Sterling
Sterling Bank introduced Switch to help Nigerians overcome the many obstacles to international banking. The product makes a diverse set of border-defying financial services accessible from a single mobile app.
One such service is international money transfers. With the Switch app, Nigerians living abroad can send money directly to their loved one’s local bank accounts and domiciliary accounts, at a minimal cost. They can begin using the app by signing up on it and funding their account with any bank card.
Persons outside of Nigeria may also open a Nigerian savings account and send funds from it as well.
Domiciliary accounts are an option worth exploring. That’s because persons outside of Nigeria can pay directly into them in their own (foreign) currency. But there’s a catch: this type of account only holds a specific currency. So you could have a dollar, pound, or euro domiciliary account.
You can open a domiciliary account at any commercial bank in Nigeria. Requirements for opening one may vary across individual banks.
If you’re receiving funds in this account, the sender will need the following details about the account to initiate a transfer:
- Account name
- Account number
- Bank name
- Bank address
- Bank routing number
- Bank’s SWIFT code
Note that you can only withdraw funds from domiciliary accounts in that account’s designated currency. If you want the money in naira, you should request for it to be converted accordingly.
It shouldn’t be hard to receive money from abroad. Although the new CBN rule leaves us with fewer options to do this, you can make use of the other paths we’ve recommended in this article.
Featured Image Source: Nairametrics
Got a suggestion? Contact us: firstname.lastname@example.org