Most Nigerians are used to receiving money from abroad. We all have loved ones, friends or business partners who send money to us for different reasons. The World Bank had in fact projected that up to $22 billion will flow into Nigeria in 2017 through Diaspora remittances.
In the same vein, there are people in this country who need to send money to friends or relatives living abroad.
The process of sending money abroad is known as Outbound Money Transfer (OMT). OMT is a person to person international money transfer from Nigeria to countries around the world.
In recent times the volume of outbound money transfers in Nigeria is increasing thanks in most to technology which has caused a rapid increase in local and international transactions.
Listed below are 7 ways through which money can be transferred abroad from Nigeria;
Western Union Money Transfer
Western Union remains a credible and popular choice for sending Money from Nigeria to other countries. There are presently 5,000 Western Union outlets in the country, working in partnership with commercial banks and Microfinance banks.
Requirements for sending payments:
- Sender’s name, phone number and address.
- The receiver’s name and country.
- Amount in Naira.
- Acceptable means of identification (any one of International Passport, Driver’s license, Permanent Voters card, National Identity Card, BVN).
- Account holder with bank
- Test question and answer where applicable
- A maximum limit of USD1,000 or Naira equivalent per customer per quarter, as stipulated by the Central Bank of Nigeria.
- Your application will have to be accompanied with information regarding the receiver’s location and possibly his/her bank details as well as a verifiable means of identification as well as the cash to be transferred.
- The outlet will assist in converting the Naira sum into the corresponding destination currency at prevailing Forex exchange rates. In addition, the sender will bear the costs of sending the money abroad i.e the costs of the transaction. This cost will also include a surcharge for Value Added Tax.
Note: You cannot send funds through Western union as a company. The CBN policy states that the outbound service is strictly on “a person to person basis”. No business transactions are allowed.
Money Gram is one of the foremost global payment platforms that is present in over 200 nations in the world and operates from over 300,000 locations. The new CBN directive for outbound money transactions allows Money Gram partner with several Nigerian banks, to enable the sending of money from Nigeria to other countries.
The process of transferring money through Money Gram is similar to that of Western Union.
A domiciliary account ‘dom account’ is an account that permits the operator to hold money in other currencies, other than the Naira. It is mainly used by Nigerian businesses and individuals for the transfer of funds direct to foreign receiving accounts for the settlement of business transactions and other purposes.
A domiciliary account is particularly useful when large sums of money are to be transferred abroad.
Opening a Domiciliary account is similar to that of a current or savings account and requires the following; completed account opening form, valid means of identification, BVN, two references, recent utility bill and passport photograph.
At its most basic, sending money abroad using one’s domiciliary account will involve presenting the recipient’s bank details including the account name, account number, name of the bank and branch name, Swift Code, Routing Number, as well as the sum of the money to be transferred, which will be converted into the destination currency at prevailing forex exchange rates..
After these procedures have been observed, the transaction is consummated. The sender will receive an SMS notification, usually within a 48-72 hour period, informing that the originating (sender’s) account has been debited and the recipient’s account has been credited.
PayPal is one of the largest global online payment platforms employed by merchants and individuals for the payment of goods and services across the world. It is presently used by close to 100 million people on a regular basis. For years, Paypal had shut Nigeria out due to our notoriety for internet-related fraud, but lifted these restrictions as fraud techniques improved as well as Nigeria’s notion as the largest economy in Africa.
Opening a Paypal account is very simple; all you need do is go to the website – www.paypal.com/ng and sign up.
Note: if for example you transfer say $20 to anyone abroad, you will be debited in Naira at the applicable exchange rate and alerted by your local bank.
Skrill is an e-commerce business that allows payments and money transfers to be made through the internet, with a focus on low-cost international money transfers.
In Nigeria, Skrill offers an alternative means is another means of transferring money abroad. It works just like Paypal, allowing you to send and receive funds.
With Skrill, you can send money to an email address. If the recipient has a Skrill account, the money is automatically credited to their account. Otherwise, the recipient is notified to open a Skrill account to receive the money you sent. The money is returned to you if the receiver does not accept the transfer within 14 days.
Note: When you transfer money through Skrill, the money is received in the currency of the recipient’s account. Skrill offers accounts in over 40 of the leading currencies of the world.
Payoneer is a financial services company that provides online money transfer and digital payment services present in over 200 countries worldwide. Payoneer account holders can send and receive funds into their bank account, Payoneer e-wallet, or onto a re-loadable prepaid MasterCard debit card that can be used online or at points-of-sale.
In Nigeria, to start using Payoneer services, you will need a Payoneer Mastercard, which is a universal credit card for paying and buying online. This card is free of charge.
Steps to apply for Payoneer Mastercard in Nigeria
Log onto www.payoneer.com
Fill your details – full name, address and your preferred means of identification
Set password, secret question and answer, your preferred means of identification (drivers license or international passport) and provide the details of the ID as required.
Click the ORDER button.
Note: The card will be sent to the shipping address you filled in the application process within a few weeks or months.
Neteller is one of the world’s largest independent money transfer businesses used in over 200 countries, Nigeria inclusive. It is an electronic currency for online payments. Money in a Neteller account can be used to pay merchants, send to customers or pay at any retailer that accepts Master card using the Neteller prepaid card that is part of the account.
To get the Neteller card you will need to visit their website at www.neteller.com and sign up.
If you know additional means of transferring money abroad from Nigeria, please share in the comments below.