Hidden Fees to Avoid When Sending from Nigeria to Canada
Category: Savings
Sending money from Nigeria to Canada can involve more than the fee shown on the first screen. Whether you are helping family, paying tuition, or covering living expenses, currency conversion and bank deductions can increase your costs.
The best way to compare options is to ask: How many Canadian dollars will the recipient receive for my total naira outlay?
Availability matters, too. Not every international transfer app supports outbound payments from Nigeria. Before comparing prices, confirm that the provider accepts Nigeria-based senders and supports your funding method, transfer purpose, and Canadian destination.
Here are the costs to check before sending.
1. Exchange-Rate Markups
A low transfer fee does not necessarily mean a cheap transfer. A provider may earn money through the exchange rate instead.
An exchange-rate markup is the difference between a reference market rate and the rate offered to you. If your quoted rate buys fewer Canadian dollars per naira, your recipient receives less—even when the advertised transfer fee is zero.
How to check the rate
Compare the provider’s quote with an independent, current market reference. Make sure both rates use the same format, such as Canadian dollars per Nigerian naira.
A reference rate is a comparison tool, not a promise that you can transact at that rate. Rates available for a particular Nigerian funding method or payment route may differ.
To compare providers fairly:
- Request quotes close together in time.
- Use the same total spending amount.
- Select the same delivery method.
- Compare the final CAD payout, not just the advertised fee.
Also check whether the rate is locked when you book or determined later when funds arrive.
2. Double Currency Conversion
Some payment routes convert naira into another currency, such as US dollars, before converting it into Canadian dollars.
That can create two opportunities for conversion costs:
- NGN to an intermediary currency.
- The intermediary currency to CAD.
A transfer described as a “dollar payment” is not necessarily a Canadian-dollar payment. Confirm the currency being sent and the currency your recipient’s account accepts.
If you already hold foreign currency in a domiciliary account, ask what conversion is required. Do not assume using that account eliminates every exchange cost.
A direct NGN-to-CAD quote can make comparison easier, but it is not automatically cheaper. Compare the complete cost and expected payout.
3. Intermediary Bank Deductions
International bank transfers may pass through correspondent or intermediary banks before reaching Canada. Those banks can charge processing fees, sometimes deducted from the amount being transferred.
The sending bank’s upfront fee may therefore be only one part of the total.
Understand who pays the charges
For some international bank wires, you may encounter these charging instructions:
- OUR: The sender is instructed to bear the transfer charges.
- SHA: Charges are shared; the sender typically pays their bank’s charges, while other charges may fall to the recipient.
- BEN: Charges are borne by the beneficiary, often through deductions.
Availability and implementation vary. Choosing OUR should not be treated as an unconditional guarantee of the exact amount received unless your bank explicitly confirms that outcome.
Ask whether intermediary fees are known in advance and whether the recipient amount is guaranteed or estimated.
4. Canadian Receiving-Bank Fees
Your recipient’s Canadian bank may charge for receiving an international wire. This is separate from the fee paid in Nigeria.
The receiving account may also trigger another conversion if the transfer arrives in a currency different from the account’s currency.
Before sending, ask the recipient to confirm:
- Whether their account accepts the incoming payment type.
- Whether an incoming wire fee applies.
- Whether the bank will convert the payment.
- Which account and routing details the sender must use.
This is particularly important for tuition or other payments requiring an exact amount. A deduction could leave the payment short.
Do not add an arbitrary buffer. First establish which deductions apply and whether the biller provides specific international payment instructions.
5. Card and Funding Charges
The way you pay for a transfer can affect its overall price.
Where card funding is available, the transfer provider may charge a funding fee. Your card issuer may separately apply charges based on how the transaction is classified.
Possible costs include:
- Foreign transaction charges.
- Currency conversion charges.
- Cash-advance or cash-equivalent fees on some credit cards.
- Interest under the card’s applicable terms.
These charges are not universal. Ask your issuer how it treats the transaction rather than assuming that a transfer app’s displayed fee includes everything.
Also confirm current international payment permissions and limits with your Nigerian bank. A card that works domestically may not support the proposed overseas transaction.
6. Amendment, Return, and Cancellation Costs
Incorrect recipient details can become expensive. A bank may charge to investigate, amend, recall, or return a transfer.
Even when a refund is available, you might not receive your full original outlay. Processing charges may be non-refundable, and a currency conversion reversal can introduce an exchange-rate difference.
Reduce the risk by checking:
- The recipient’s legal name and account number.
- The Canadian institution and transit details, where required.
- The SWIFT/BIC and any intermediary instructions.
- Payment references required by a school or business.
Use details supplied by the receiving bank or official biller. Independently verify unexpected changes to payment instructions, especially those received by email.
How to Compare the True Cost
Start with a fixed budget and ask each provider what the recipient will actually receive.
For a practical comparison, record:
| What to check | Why it matters | |---|---| | Total NGN debited | Shows your complete upfront outlay | | Quoted exchange rate | Reveals the conversion terms | | Expected CAD received | Makes offers easier to compare | | Potential later deductions | Identifies uncertainty | | Rate validity and delivery estimate | Helps you assess timing risk |
If a provider cannot confirm the final payout, ask which deductions remain possible.
Use regulated providers and verify their eligibility requirements. Depending on the transfer purpose and route, you may need identification, source-of-funds information, or supporting documents. Confirm current requirements with the provider or your bank before committing funds.
Frequently Asked Questions
What is the cheapest way to send money from Nigeria to Canada?
There is no universally cheapest option. Compare eligible providers using the same total naira budget, funding method, and delivery type. Prioritise the final CAD payout after known charges.
Are zero-fee transfers really free?
Not necessarily. A provider may include a margin in its exchange rate, while banks or card issuers may charge separately. “Zero transfer fee” does not automatically mean zero total cost.
Can the recipient receive less than the quoted amount?
Yes, if the quote excludes intermediary or receiving-bank deductions. Check whether the amount shown is guaranteed or estimated, and ask what could reduce it.
Can I use PayloSend to send from Nigeria to Canada?
PayloSend’s stated sending markets are the USA and Canada, not Nigeria. Do not assume it supports this outbound route. Check current supported countries and corridors before planning a transfer.
Keep More of Your Money
Look beyond the headline fee. Compare exchange rates, funding charges, possible bank deductions, and the final Canadian-dollar payout before sending.
For transfers originating in the USA or Canada, try PayloSend and explore its supported destinations across Africa, Asia, Europe, and Latin America. Check current route availability and your transfer quote before confirming.