Nigeria, located in West Africa, is the continent’s most populous nation, with nearly 191 million inhabitants. Nigeria’s population is young; in 2017, almost three-fourths of the population was under age 30. The country boasts plentiful natural resources, most notably natural gas and oil. The city of Abuja, located in the center of the country, is the capital, while coastal Lagos is the leading commercial and industrial city. Thanks to the ever-growing and entrepreneurial Nigerian diaspora, Nigeria is the largest remittance-receiving nation in Africa and the sixth-largest in the world. Nigeria has the largest gross domestic product (GDP) in Africa and is the second-largest African trading partner for the U.S., which is the largest foreign investor in Nigeria, according to State Department briefs.
When it comes to receiving payments from U.S.-based businesses, Nigerian freelancers, sellers, publishers and more show a preference for bank deposits over other methods such as bank wires or picking up cash. In part, that’s because the Nigerian government has put a cap on the amount of funds that can be received in cash, so many people are shifting to bank deposits. And although prepaid cards and e-wallets are used commonly for domestic money transfers and purchases, they are not popular methods for receiving international payments. Receiving funds into a bank account saves time on the recipient’s part, eliminating the need to stand in lines to pick up cash and is more secure. In terms of currency preferences, prior to 2016, most Nigerians preferred to be paid in U.S. dollars, which they could then convert to Nigerian Naira themselves. However, since 2016, the Central Bank of Nigeria has been regulating the exchange rate and has mandated that banks pay only in local currency. Bank deposits enable you to pay your Nigerian recipients in the local currency with ease.
Transpay’s proprietary bank network in Nigeria is extensive and growing. Launched in 2011, today our network includes all leading banks, such as First Bank of Nigeria, Guaranty Trust Bank, Ecobank Nigeria, FCMB, Fidelity Bank, Skye Bank, Zenith Bank, Heritage Bank, Access Bank and Unity Bank. Transpay’s service levels to Nigeria are best-in-class, and we are able to pay to all of our bank partners and third-party banks in Nigeria either instantly or within a few minutes.
As Nigerians look forward to a prosperous new decade, the future looks bright. If your company is interested in expanding its reach to Nigeria, contact us. We’ll show you exactly how we can make it easy to pay your recipients in Nigeria, in the way they prefer to be paid.