Sending money out of Nigeria part 1 – that will be the topic of today’s article.
Nothing written here should be considered as financial advice, nor a solicitation to invest.
For any questions, or if you are looking to invest as an expat, you can contact me using this form, or via advice@adamfayed.com
It is usually better to “kill two birds with one stone” and invest as an expat, rather than send money home to buy shares or a house.
Introduction
Nigeria is the most populous country on the African continent and the engine of the earth. It is diverse both culturally and economically and is home to the offices of countless major corporations. However, for all Nigeria’s audacity, the gap between the rich and the poor is incredible.
London-based think tank Legatum Institute publishes its global wealth index every year. The ranking lists the most prosperous countries in the world. Many assume that prosperity is used in relation to the country’s financial position, and although this is included, the Legatum Institute takes into account more factors in its ranking.
In 128th place this year (out of 149 countries) was Nigeria. This puts Nigeria in the bottom 15%, and its rankings in safety (145th), health (142nd), and economic quality (131st) are partly responsible for its poor placement. Nigeria’s best result was 47 in social capital, a category that takes into account social norms, personal relationships and civic participation.
Africa’s powerhouse, is Nigeria really as hopeless as the prosperity index suggests, or is there more to the country than meets the eye?
Economy of Nigeria
Nigeria has a middle income, mixed economy, and emerging market. In terms of GDP, it ranks 21st in the world and is the financial capital of Africa. Since 2014, Nigeria has seen huge financial growth and this is due to the influx of activity in the telecommunications, banking, and film industry. Many Nigerian expats are returning from their lives abroad to capitalize on the strongest economy of any African country.
Currency of Nigeria
The official currency of Nigeria is the Nigerian Naira (NGN). One naira is subdivided into 100 kobos. There are eight naira notes divided into denominations of 1000, 500, 200, 100, 50, 20, 10, and 5 NGN. Coins 1 and 2 NGN and 50 kobos.
Housing in Nigeria for expats
Securing property as an expat in Nigeria can be a daunting task. Demand far exceeds supply, and there is very little to satisfy those who demand Western standards. For this reason, the cost of renting one of the “prettier” properties is often beyond the budget of most professionals.
Emigrants who have been displaced by an employer are often the most settled emigrants in Nigeria. This is because most companies provide suitable homes for their employees and cover rent and any leasing logistics. In some parts of Nigeria, companies actually own real estate or apartment complexes specifically for expatriate personnel.
If you are moving to Nigeria for work, make sure your contract includes accommodation. This is standard practice for most companies. If the property wasn’t secured when you arrived, you may find yourself in a hotel for a week or two next to your new job.
If you do not have a resettlement package because you are not moving to Nigeria for work, another option is to sublet an apartment from a friend. If you don’t have a place to live or an immediate job, many advise against moving to Nigeria.
Healthcare for expats in Nigeria
One thing that worries expats living in Nigeria is the lack of quality health care. There are the usual hospitals, pharmacies, and clinics that you would expect in the cities and towns of such a country, but conditions are poor and staff are often overwhelmed and undertrained. For this reason, diseases such as cholera, tetanus, and polio are still widespread despite Nigeria being considered a developed country.
Typically, expats in Nigeria use the services of private clinics and hospitals located in large cities. However, even they lack the quality of their Western counterparts. Scheduled examinations and minor problems are easily solved in these institutions. However, more complex medical problems are more difficult to diagnose due to outdated equipment and staff inexperienced in specialized fields. Therefore, many expats actually visit the house if they need a specialist doctor.
Education for foreigners in Nigeria
The vast majority of Nigerian children suffer from poor learning conditions and lack of staff, resulting in overcrowded classrooms. Even there are schools that do not have basic necessities such as water or electricity. Problems lie at the heart of federal, state, and local governments as the responsibility for education is shared among them. This leads to a conflict of opinion and little is achieved.
Initially, many Nigerian schools were in the hands of missionaries, who gave children excellent education and fantastic conditions that were not inferior to the rest of the world at that time. Lost Nigerian parents wish it could be restored.
It is clear that the vast majority of immigrant children attend international schools, while the rest are educated at home. International schools are usually located in Lagos, Ibadan, Enugu, and other cities and major cities. The average cost per year tends to be around $30,000 which is £22,433.
Transportation cost in Nigeria
Getting from point A to point B in Nigeria can be tricky if you are not a local. The roads are chaotic and local drivers have their own rules to follow. Although it is relatively inexpensive to buy a car, it is highly recommended that expats stay off the road. However, since public transport is best avoided due to security concerns, what options are there for expats?
For expats who live close enough to their jobs and local attractions, they often rely on walking or cycling. However, given that the vast majority of expats in Nigeria have been displaced by their companies, most packages include a car and driver. Some even come with security and the bill is paid by the business.
Jobs in Nigeria for expats
Nigeria’s largest source of income is oil, and the country has the headquarters of multinational companies. There are also many opportunities for expats in mining, construction, IT, telecommunications, and general business.
Most of the expats who end up working in Nigeria tend to be highly skilled and experienced individuals. Jobs are often for project management, certified public accountant, human resources, business development, engineering, or IT management.
The salary of expats in Nigeria can be up to 45% higher than what they receive at home. This should cover the higher rental prices and safety factors associated with working in an African country. However, some expats packages also include free or subsidized accommodation and chauffeur-driven transportation.
Later we will discover the different options of investments for those expats who live in Nigeria and are seeking ways to properly invest their money and reach financial goals.
Sending money out of Nigeria
Transferring money to friends, relatives in another city, or business partners in another country is becoming easier. Banks are developing special applications, and new money transfer companies are opening offices around the world. What is a more profitable bank transfer or Western Union?
Transferring money to and from Nigeria quickly and without problems is an art. The Nigerian stories adapted the epigraph to themselves and their new theme. The economic system of Nigeria is transparent, understandable, and logical, but for now, you are in the status of an observer. But we are working to make it easier for you and offer different options for transferring money that will definitely be useful to you.
So, the need to transfer money to or from Nigeria may arise for various reasons:
- Purchase of residential property by a foreigner
- Remote work and salary
- Financial assistance (both ways)
- Millions of goals
Each tourist has his own horror story on the topic “How I transferred money to Nigeria.” But the reverse version is even worse. Let’s find out the most popular and guaranteed ways with Nigerian stories.
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Adam is an internationally recognised author on financial matters, with over 368.7 million answers views on Quora.com and a widely sold book on Amazon
