Many Zazuu users have highlighted that for transactions coming into Nigeria, our service does not show rates in naira. Instead, we show potential payouts in US dollars.
Admittedly, for people sending money to Nigeria, this isn’t an ideal solution as they want to know what value their friends and family will be getting for the money transferred. However, the current situation is due to certain prevalent factors that we will be sharing in this blog post.
On the 30th of November, 2020, the Central Bank of Nigeria instructed all international money transfer operators to only pay out in US dollars. Find the instruction here.
Since the CBN’s directive was passed across, all money transfer providers including MoneyGram, WorldRemit, Azimo, and TransferWise have changed their payout currency in Nigeria from NGN to US Dollars.
As a comparison service, Zazuu has also had to change its comparison currency to US dollars.
What does this mean for your transactions into Nigeria?
As expected, transactions into Nigeria have continued as instructed with MTOs only paying out in USD. This means that the primary way to send money to anyone is Nigeria is if they own a USD domiciliary account.
Some MTOs like Azimo allow recipients to receive money directly into their USD domiciliary accounts if the transfer is done using SWIFT.
Your recipients might also be able to collect cash if the remittance company offers it as an option. Azimo, WorldRemit, and MoneyGram allow recipients to pick up USD cash in Nigeria.
On obtaining the dollars, either as cash or in their domiciliary accounts, the recipient can change it by selling at their bank branch or a local bureau de change.
Some other providers still allow people to pay in Naira but that is in violation of the CBN directive, and they may face the threat of sanctions.
Should You still use Zazuu to check USD transactions?
Now that you can only send USD to Nigeria, it is fair to think you no longer need to shop around, especially if you are sending from the United States.
But, that’s not the case.
We compared a handful of providers and noticed they all offer a slightly different “Nigeria USD” rate and transfer fees. So there is still a need to shop around and make sure you are getting the best deal.
Always remember to check before you send.