Things to keep in mind when transferring money to and from Nigeria

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Published on 2021-01-22 at 07:05
One of the biggest issue expats have when settling down in a new country is arranging their finances. This can become even more painful when they come across stumbling blocks like opening a local bank account or converting money to and from the local currency. This is one of the biggest issues experienced by expats in Nigeria. Whether you need the Nigerian currency, Naira to pay bills and enjoy the local delights or if they need to convert funds back from local currencies to send to their country of origin.

Here are some important things you should look out for when you send money to Nigeria or send money from Nigeria:

Always research your rates.

Getting the best Naira exchange rates is not always an easy process as the rates in the market can differ significantly. Doing your research online to convert Naira to Dollars, convert Naira to Pounds or convert Naira to Euros is the best start. You always want to get the best rates for your cash, there are currency information websites specializing on the Naira online that you can use to research rates such as abokifx.com, ngnrates.com and tradenaira.com.

Avoid the black market 

Currently, over 60% of currency exchange involving the Naira occurs in the black market, this is not ideal for expats who do not have local knowledge and contacts therefore leaving them vulnerable to scams. The overreliance on the black market has helped to create a misconception around the world that a large proportion of these funds are being used for illicit purposes. This is far from the case as many legitimate businesses and genuine remittances must be done with USD to Naira black market participants.

Avoid using a firm or a bureau de change with no reputation

When it comes to currency exchange, especially for the Naira, no reputation is a bad reputation. There will be many firms claiming to offer really good rates for USD to NGN, GBP to NGN and EUR to NGN but many will be unreliable, slow to deliver or outright scams. Avoid these at all costs. You can join a Nigerian discussion forum to read reviews about different companies before you make up your mind.

Fluctuating and volatile currency values

Exchange rates, especially for currencies like the Naira can fluctuate massively over short period of time. Always pay attention to the local politics and keep up to date with the latest Nigerian Business News an always be prepared for massive declines in the currency's value.

Truly, settling down in a new country can be hard and especially in a country where local contacts can benefit or hinder your entire experience. Companies like TradeNAIRA should be one of the first tools to have at your disposal when moving and settling in Nigeria, as well as its naira currency exchange platform, the site allows expats to find freelancers, especially those that can clear cargo and set up your housing and office situation locally as well as companies that can support business creation and management, and you can pay for these services using a secure Nigerian escrow service. Services you can find include Freight-forwarders, Company formation specialists, Accountants and Lawyers.