🇳🇬How to Receive International Payments in Nigeria

Nigeria operates a managed floating exchange rate system regulated by the Central Bank of Nigeria (CBN). As a freelancer receiving foreign currency, your primary tool is the domiciliary account — a foreign currency account held at a CBN-licensed commercial bank. These accounts can hold US dollars, British pounds, or euros, and they allow you to receive wire transfers directly from overseas clients without automatic conversion at the interbank rate.

The CBN's foreign exchange manual draws a distinction between inflows categorised as "service exports" and those treated as personal remittances. Freelance income from international clients qualifies as a service export, which means it passes through the export documentation window at most banks. In practice, many banks require a brief explanation of the transaction before releasing funds — keep a copy of your invoice and any service agreement to hand.

The eNaira, Nigeria's central bank digital currency, is not relevant to receiving international payments. It operates only within the naira ecosystem and has no foreign currency leg.

The Foreign Exchange (Monitoring and Miscellaneous Provisions) Act 1995 — commonly called FEMA — remains the primary statute governing foreign exchange transactions. Under FEMA, all foreign currency received for services rendered must be deposited into a domiciliary account or an approved channel within a reasonable period. Holding foreign currency in overseas wallets indefinitely without repatriation has historically been a grey area; the CBN expects freelancers who invoice Nigerian residents or who are resident in Nigeria to repatriate earnings.

CBN Circular TED/FEM/FPC/GEN/01/010 clarified that fintech-facilitated inflows via platforms such as Flutterwave and Paystack are acceptable for business entities but that individual freelancers receiving large recurring amounts may be subject to enhanced documentation requirements. This does not prohibit individual use; it signals that volumes above certain informal thresholds attract scrutiny.

Payoneer and Wise operate in Nigeria under the CBN's Payment Service Provider licensing framework. Funds received via Payoneer can be withdrawn to a local bank account in naira at a Payoneer-set rate, or transferred to a domiciliary account in the original currency at some banks. Wise supports transfers to Nigerian naira accounts through its local disbursement network, though the product availability has fluctuated with CBN policy changes.

For most Nigerian freelancers, Payoneer remains the most reliable option because of its long-standing CBN approval, dedicated Nigerian support, and straightforward withdrawal path to local bank accounts. The platform charges a 2% conversion fee when withdrawing to naira, plus a fixed transfer fee that varies by bank.

Wise (formerly TransferWise) is available for inbound USD, GBP, and EUR transfers into a Nigerian naira account, but its availability in Nigeria has been intermittent. Check the Wise website for current status before counting on it as your primary channel.

For clients who pay via US ACH or international wire, a domiciliary account at a Tier 1 Nigerian bank (Access Bank, Zenith, GTBank, UBA, First Bank) is the most direct route. Share your account number, sort code equivalent (bank branch code), and SWIFT/BIC with international clients. Most Tier 1 banks have their SWIFT codes published on their websites.

Cryptocurrency is used as an informal workaround by some freelancers — receiving USDT or USDC on the P2P market and converting to naira. While not prohibited for personal transactions, large-scale crypto-to-naira conversion using commercial-scale peer-to-peer volumes can attract CBN attention given the 2021 circular restricting crypto transactions at financial institutions.

Open a domiciliary account early — most banks require three to six weeks of account history before enabling international wire reception. Some banks have a minimum opening balance of USD 100. Bring your BVN, a valid national ID or international passport, proof of address, and a utility bill.

Always issue a proper invoice before requesting payment. This protects you in two ways: it substantiates the transaction if your bank queries it, and it creates the paper trail the FIRS expects if you are ever audited. Include your full name, Nigerian address, the service description, the agreed currency, and payment terms.

If your primary client pays in US dollars but your local expenses are in naira, consider keeping a portion of each payment in the domiciliary account as a buffer. The naira has historically depreciated against major currencies; converting everything immediately removes the option to benefit from timing.

For Payoneer withdrawals, use the "Withdraw to bank account" feature and choose your domiciliary account if your bank supports it. Not all Payoneer-linked Nigerian banks offer domiciliary withdrawal — confirm with your bank's internet banking team before relying on it.

Nigerian freelancers who receive foreign income are liable to pay income tax in Nigeria under the Personal Income Tax Act (PITA) as amended. The Federal Inland Revenue Service (FIRS) expects self-employed individuals to register for a Tax Identification Number (TIN), file annual self-assessment returns, and pay quarterly provisional tax.

Income from export of services is not eligible for the VAT zero-rating that applies to goods exports under the current FIRS framework — freelance services supplied to overseas clients attract 7.5% VAT in principle, though enforcement for individual freelancers has been inconsistent. The safer approach is to register for VAT once your annual turnover exceeds the registration threshold (NGN 25 million as of 2025) and charge or absorb accordingly.

FIRS introduced a simplified compliance programme for self-employed individuals. You can file electronically via the FIRS TaxPro Max portal. Keep invoices and bank statements for at least six years — this is the standard audit window under Nigerian tax law.