Will you need cash?

The simple answer is Yes.  Without Naira you will have to shop in more expensive restaurants or grocery stores.  You won’t be able to avoid currency fluctuations by using your bank card (when you can). And you won’t be able to tip the security, waiters or anyone else who you might need to make your trip less stressful.  LGIL Tip: To get great service it is always advisable to tip before the meal or entering a hospitality venue. That way you will get the best table, parking and service!

Someone once told me never to use my international bank card in Nigeria, but I have never had an issue with fraud or excessive charges emanating from Nigeria, so I have used my international bank card wherever I can. At least I did before I discovered money transfer apps (see below). But it is best to check with your bank before you use your bank card in Nigeria.

How much cash will you need?

On my first trip to a cash point I had no clue what the price of anything was, so I did not know how much cash I would need. I also had not calculated the conversion rate. I walked up to the cash point and hit the largest amount I could withdraw. In those days it was NGN 40,000 I nearly fainted when the machine spewed out a pile of cash which barely fit into my purse!  That pile of cash lasted barely one evening with a meal for two and a couple of drinks in an international standard restaurant can set you back over NGN 22,000

Cash points in Lagos give out all 500 or 1000 Naira notes. Most cash points limit transactions to NGN 10,000 per transaction. You can repeat the transaction as many times as your bank daily balance allows, or up to the cash available in the cash point.  Allow plenty of time to withdraw cash as you might have to try a few ATMs before you are able to get cash dispensed.

Bank fees for transactions

You are likely to incur a bank fee for international card transactions.  Fees range from NGN 500 to NGN 1000 or more depending on the international bank or the local bank you are using. There are additional fees for more than 3 transactions per month. So cost of withdrawing cash can really add up if you are not careful and keeping an eye on this. Some international banks do not trade in Naira, so the cost of withdrawing cash locally can rack up. Check with your bank before you withdraw cash, so you don’t have a nasty surprise when you return.

Where to take out cash?

If you are new to Nigeria you might feel safer withdrawing cash from cash points at your hotel. But be aware you are likely to be charged a higher transaction charge if you do. Going to a cash point away from the hotel will no doubt be cheaper than the rates. There are plenty of cash points or ATM Galleries (as they are sometimes called locally) around.

Nigeria is notorious for dirty money (as in the filthy rather than the ahem laundered kind).  If you would prefer not to handle money which has seen better days and frankly needs a wash! Try Standard Charter Bank.  They dispense clean money – but you will pay more for the privilege.  Taking out NGN 1000 bills rather than NGN 500s, will sometimes mean you have cleaner money. But not always.

Slightly off topic – but in shops you will rarely be given your small change. Try to insist when you can. Cash dispensers do not dispense NGN 200, 100, 50, 20 or 10 bills, so you only opportunity to get small change is to collect your change when it is offered. There will be plenty of occasions when they will have no change, so take your change when you can!

Don’t want to use cash or your international bank card?

In Nigeria transfers are a very common way to pay people and businesses. You can often transfer in businesses which do not have international card facilities. Just ask a manager!  All you need is the name of the account number and bank name (name, email and or mobile number is useful too), to do a transfer.

Transfers can be instantaneous rather than a few days, like it would be if you tried to pay direct from your online banking. You can use transfer services such as World Remit or Transfer Wise.