GBP to NGN: funding and paying out in Nigeria
UK providers collect and fund sterling over Faster Payments (24/7) or CHAPS, and a CBN-licensed IMTO converts at the prevailing NFEM rate and pays beneficiaries in naira only, to a bank account (required above the US$200 equivalent), a PSB wallet or as cash, with NIP delivering bank payouts 24/7. The main prefunding constraint is that IMTOs cannot buy foreign exchange in Nigeria for settlement, so naira payout capacity depends on foreign currency sent ahead, while UK-side customer money stays safeguarded under FCA rules.
| Origin | United Kingdom (GBP) |
| Destination | Nigeria (NGN) |
| Instant rails in Nigeria | NIP (NIBSS Instant Payment) |
| Holiday calendar | Nigeria bank holidays 2026 and 2027 |
The market
- Nigeria received US$22.79 billion in personal remittances in 2025, up from US$22.13 billion in 2024 (World Bank data, last updated 8 October 2026). source
- The CBN's 2024 balance of payments report put inflows through IMTOs at US$4.73 billion, up 43.5% from US$3.30 billion in 2023. source
- CBN data published by Nigeria's statistics bureau attributes US$12.36 billion of 2021 inward personal transfers to the United Kingdom as country of origin, the largest of any country in the table. The table gives each country the same share of the total in every year from 2016 to 2021 (United Kingdom 64.2%). source
- Sending GBP 120 from the United Kingdom to Nigeria cost 1.96% on average in Q3 2025 (average fee GBP 1.47, exchange rate margin 0.73%), with bank account and cash payout options. source
- Personal remittances paid from the United Kingdom totalled US$13.17 billion in 2025 (World Bank data). source
- The CBN's licensed IMTO list includes UK-addressed operators such as CSL Pay, NALA Payments, Paysend, Small World Financial Services and Rightcard Payment Services (a LemFi brand company). source
How recipients get paid
| Method | Detail | Source |
|---|---|---|
| bank account | All inbound IMTO transfers are paid in naira. Amounts above the equivalent of US$200 must go to a bank account, and where the beneficiary banks elsewhere the IMTO's agent bank credits that other bank. | source |
| cash pickup | Cash payouts in naira are allowed up to the equivalent of US$200, against an acceptable means of identification. | source |
| mobile wallet | Wallets at payment service banks receive international transfers: MTN's MoMo PSB customers receive funds instantly from markets including the USA, UK and Canada through Thunes (November 2025). | source |
Payout rails in Nigeria
| Rail | Operator | Hours | Runs on holidays | Source |
|---|---|---|---|---|
| NIP (NIBSS Instant Payment) | Nigeria Inter-Bank Settlement System (NIBSS) | 24 hours a day, 7 days a week | yes | source |
| CBN RTGS | Central Bank of Nigeria | Business days only. Bank cut-offs apply: via FCMB, payments initiated before 12:00 settle the same day and later ones the next working day. | no | source |
Funding from United Kingdom
| Rail | Operator | Hours and cut-offs | Source |
|---|---|---|---|
| Faster Payments | Pay.UK (settlement in Bank of England RTGS) | 24/7. Net settlement in RTGS three times every business day, so prefunded positions carry over weekends and holidays. | source |
| CHAPS | Bank of England | Usually 06:00 to 18:00 UK time, Monday to Friday, excluding England and Wales bank holidays. Customer payments must be submitted by 17:40; bank-to-bank until 18:00. | source |
| Bacs Direct Credit | Pay.UK (Bacs Payment Schemes) | Three-day cycle (input, processing, arrival) on business days only; weekends and England and Wales bank holidays are non-processing days. | source |
FX and conversion
- The CBN unified the official FX market in 2023 under a willing buyer, willing seller model, collapsing the old segments into the Nigerian Foreign Exchange Market (NFEM). source
- Interbank NFEM pricing runs on the Electronic Foreign Exchange Matching System (EFEMS) on Bloomberg BMatch, under CBN guidelines of 25 November 2024. EFEMS covers USD/NGN spot only, with a US$100,000 minimum trade and US$50,000 increments. source
- All NFEM transactions must be concluded with an Authorised Dealer. Customer trades outside EFEMS are priced off the prevailing NFEM rate, and negotiating rates outside the market is prohibited. source
- IMTOs pay beneficiaries at the prevailing NFEM rate on the day the transfer is received. source
Who pays out in Nigeria
| Provider | What they offer here | Source |
|---|---|---|
| Thunes | Thunes says MoMo PSB wallet holders in Nigeria receive international funds instantly through its Direct Global Network, from markets including the USA, UK and Canada. | source |
| TerraPay | TerraPay's network page lists Nigeria (NGN) with both wallet payout and bank payout available. | source |
| Sterling Bank | Sterling Bank joined Thunes' Direct Global Network in January 2026 so Nigerians abroad can fund Sterling Bank accounts from foreign bank accounts, starting with multiple European markets. | source |
| MoMo PSB (MTN) | MoMo PSB says its inbound international transfers let customers receive money directly in their wallets, delivered with partners MFS Africa and Saana Capital LLC. | source |
Stablecoin routes
| Provider | Route | Source |
|---|---|---|
| Yellow Card | Yellow Card's stablecoin payments API sends NGN to Nigerian bank accounts by instant bank transfer. | source |
| Yellow Card (regulatory status) | Yellow Card Financial Nigeria Limited was admitted on 14 August 2026 to the SEC Nigeria Accelerated Regulatory Incubation Programme on a conditional approval-in-principle basis, which is not a final licence. | source |
Prefunding this corridor
- IMTOs are barred from buying foreign exchange in Nigeria's domestic market for settlement, and must file weekly returns of their FX sales in the NFEM. source
- Customer funds meant for remittance must sit in a designated account with the IMTO's agent Authorised Dealer Bank, separate from all its other accounts. source
- NIP runs 24/7, so instant bank payouts continue at weekends and on holidays, while CBN RTGS runs on business days only. source
- FCA safeguarding is a condition of authorisation for authorised payment institutions. New CASS 15 rules took effect on 7 May 2026, and firms file monthly safeguarding returns within 15 business days of month end. source
- Faster Payments settles net in Bank of England RTGS three times each business day, so sterling collected at weekends sits in settlement positions until the next business day. source
- Since 24 June 2024, eligible IMTOs can sell foreign exchange and buy naira from the CBN directly or through their Authorised Dealer Banks to settle diaspora remittances, with same-day settlement for trades confirmed before noon. source
Size the balance you hold in Nigeria for payouts during your top-up lead time plus local closures. Check this corridor's runway and the Nigeria holiday calendar.
Regulators
- Central Bank of Nigeria (Trade and Exchange Department): Licenses IMTOs under the January 2024 guidelines: inbound transfers only, minimum share capital of US$1 million (or naira equivalent), a N10 million application fee and N10 million annual renewal. Banks are prohibited from operating IMTO services but can act as agents, and the guidelines extend that prohibition to financial technology companies without defining the term. source
- Central Bank of Nigeria (circular of 24 March 2026): Requires every IMTO to open designated naira settlement accounts with Authorised Dealer Banks and to run all beneficiary payments and settlements through them. IMTOs can hold several such accounts with different banks. source
- Securities and Exchange Commission, Nigeria: Registers and regulates virtual and digital asset exchanges under the Investments and Securities Act, 2025. source
- Financial Conduct Authority (origin side): Money remittance is a payment service under Schedule 1 of the Payment Services Regulations 2017, so UK remittance firms need FCA authorisation or registration as a payment institution. source
Seeing this corridor in Polynopsis
Polynopsis shows the balance at each Nigeria payout partner, bank and wallet next to your GBP funding accounts and the transfers in flight between them, and warns before the GBP to NGN corridor runs dry.
Frequently asked questions
Which UK rail funds the corridor outside business hours?
Faster Payments runs 24/7. CHAPS usually runs 06:00 to 18:00 UK time on business days, with a 17:40 cut-off for customer payments.
What licence does a UK remittance firm need?
Money remittance is a payment service under the Payment Services Regulations 2017, so the firm needs FCA authorisation or registration as a payment institution. Authorised payment institutions must safeguard customer funds, and the FCA's supplementary CASS 15 rules apply from 7 May 2026.
How must Nigerian beneficiaries be paid?
In naira only, at the prevailing NFEM rate on the day received. Amounts above the US$200 equivalent go to a bank account; smaller amounts can be paid in cash against identification.
Can the IMTO buy naira liquidity in Nigeria?
Only by selling foreign currency. The CBN bars IMTOs from buying FX in the domestic market for settlement; IMTOs sell FX for naira directly with the CBN or through their Authorised Dealer Banks, and all beneficiary payments run through designated naira settlement accounts with Authorised Dealer Banks.
Other corridors
Sources
- Personal remittances, received (current US$): Nigeria · World Bank
- Personal remittances hit $20.93bn in 2024: CBN · Punch
- Demographic Statistics Bulletin 2022, Table 1: inward personal transfers by country of origin (CBN data) · National Bureau of Statistics, Nigeria
- Remittance Prices Worldwide: United Kingdom to Nigeria · World Bank
- Personal remittances, paid (current US$): United Kingdom · World Bank
- International Money Transfer Operators (licensed list) · Central Bank of Nigeria
- Reviewed Guidelines of International Money Transfer Services in Nigeria (31 January 2024) · Central Bank of Nigeria
- Thunes and MoMo PSB bring real-time cross-border payments to millions of Nigerians · Thunes
- NIBSS Instant Payments (NIP): the game changer · NIBSS
- Nigeria payment system overview · Verto
- RTGS PFMI disclosure (Faster Payments settlement cycles) · Bank of England
- CHAPS · Bank of England
- Bacs processing calendar · Bacs (Pay.UK)
- Foreign Exchange Market in Nigeria · Central Bank of Nigeria
- Reforms and Initiatives: key milestones · Central Bank of Nigeria
- Revised Guidelines for the Nigeria Foreign Exchange Market (NFEM), 29 November 2024 · Central Bank of Nigeria
- Investments and Securities Act, 2025 · Securities and Exchange Commission, Nigeria
- The Payment Services Regulations 2017, Schedule 1 · legislation.gov.uk
- TerraPay network coverage · TerraPay
- Agent banking: receive and make payments to your Nigerian customers · Onafriq
- Sterling Bank joins Thunes' Direct Global Network · Thunes
- International Transfers on MoMo PSB · MTN MoMo
- Yellow Card API: Africa coverage (receives and sends) · Yellow Card
- Licenses and registrations · Yellow Card
- Safeguarding requirements for payment institutions and e-money institutions · Financial Conduct Authority
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.