A client says, "We'll pay you $1,000 a month." By the time it lands in your naira account, you may have lost money in three or four places, and you can't see most of them on the invoice. This guide gives you a way to compare payment routes using your own numbers, so you pick based on what actually reaches your account.
I won't quote current fees or exchange rates here, because they change often and differ by provider. Instead, you'll learn which costs to look for, where to find them, and how to run the comparison yourself.
The five places money leaks
Every route from a foreign client to your naira balance can lose value in these places. Check each one for every option.
- Sender fee. Some clients pay a fee to send, and some deduct it from you. Ask which applies before you agree.
- Receiving or incoming fee. The platform or bank may charge a percentage or flat amount when funds arrive.
- Conversion rate spread. This is the gap between the rate you're given and the real market rate. It's often the biggest cost and the least visible.
- Withdrawal or transfer fee. Moving money from a platform wallet to a bank account may carry a flat or percentage fee.
- Delay cost. If money sits for days, you may miss a rate or a rent deadline. This has a real price, even if it isn't a fee.
The main routes to compare
| Route | How it works | What to check |
|---|---|---|
| Freelance platform wallet (Upwork, Fiverr and similar) | Client pays the platform; you withdraw to a local bank or other method | Platform service fee, withdrawal fee, which payout methods are offered to your country |
| Dollar domiciliary account at a Nigerian bank | Client wires dollars to your account details | Incoming wire charges, intermediary bank deductions, conversion rate if you sell to naira, account maintenance fees |
| Fintech receiving account | You get virtual USD details from an app | Provider's licensing and track record, withdrawal limits, fees to move to naira, support quality |
| Transfer service (e.g. Wise-type services) | Client sends in their currency to a service that pays out | Whether it supports payouts to your country, stated fee, rate used |
| Crypto or stablecoin | Client sends tokens; you sell for naira | Network fee, exchange spread, regulatory rules, price movement while you wait |
Availability changes by country and sometimes by account type. Ghana, Kenya and South Africa have different banking rules and different provider options than Nigeria, so confirm on the provider's own site that your country is supported before you give a client any details.
A fee comparison checklist
Before you give a client payment details, answer these for each route:
- Is the provider licensed in my country, and can I find that on the regulator's website or the provider's official page?
- What exactly is deducted when money arrives? Ask support in writing.
- Does the client's bank add an intermediary charge? Wires through correspondent banks sometimes arrive short.
- What rate will I get when converting, and how does it compare with the rate on a neutral source at the same moment?
- What are the daily and monthly limits on receiving and withdrawing?
- How long does a payment take from "sent" to "in my bank"?
- Can the account be frozen or limited, and what documents would they ask for? Expect BVN and often NIN verification.
- Does the account name match my ID? Mismatches cause delays. See our guide on fixing name mismatches.
A worked example (hypothetical)
Say a client owes you $500. Use made-up costs to see how the method matters. These numbers are for illustration only.
| Step | Route A | Route B |
|---|---|---|
| Amount invoiced | $500.00 | $500.00 |
| Platform or incoming fee | -$25.00 (5%) | -$10.00 (flat) |
| Left in dollars | $475.00 | $490.00 |
| Conversion spread lost | 2% = -$9.50 | 4% = -$19.60 |
| Withdrawal fee | -$2.00 | $0 |
| Net value | $463.50 | $470.40 |
Route B has a bigger spread but wins because its other fees are small. You wouldn't see that by looking only at the headline fee. The method is simple: write down every deduction, convert to a net dollar figure, and compare.
Match the route to your situation
- New freelancer with one-off gigs: a platform wallet is usually simplest. You pay a bit more but get payment protection and a record.
- Full-time contractor with one client, monthly pay: a domiciliary account or a reputable receiving account usually costs less over time. Fixed monthly flows make small percentage differences add up. Our post on negotiating a remote salary in dollars covers asking for the payment method you want.
- Paid through an employer of record: they often pay in naira or dollars through their own system, so the question is who bears the fees. See Employer of Record vs Direct Contractor.
- You need naira quickly: speed may matter more than a small saving. Pick the route with the shortest reliable timeline.
Common mistakes
- Judging by the advertised fee only. The spread usually costs more than the stated fee.
- Using a friend's account. Receiving money in someone else's name, BVN or NIN creates tax, legal and freezing problems. Open your own.
- Giving details to a stranger who "sends extra". Overpayment and "send back the difference" stories are classic scams. Our guide on building a shortlist of real employers helps you work with verifiable companies.
- Keeping everything on one platform. Accounts get limited. Have a second route ready and keep invoices and contracts saved.
- Ignoring records. Keep invoices and statements. You'll need them for banks, visa applications and tax.
Test before you rely on it
Send a small first payment, say the equivalent of a few dollars, through any new route and time it. Record what arrived, the delay and every deduction. Then compare it with your calculation. Do this before your first large invoice.
Frequently asked questions
Should I keep money in dollars or convert at once?
That depends on your expenses and risk tolerance. If your bills are in naira, hold only what you'll need for dollar costs like subscriptions and convert the rest on a schedule you decide, rather than guessing the market.
Do I pay tax on dollar income?
Income earned by a Nigerian resident is generally taxable, but rules and thresholds change. Check with the tax authority's official site or a licensed tax adviser. Ghana, Kenya and South Africa have their own rules.
Is a fintech dollar account safe?
Safety varies. Check that the provider is licensed, read its terms on limits and freezes, and never hold more there than you can afford to have delayed.
What should I tell the client?
Send your payment details with the invoice, state the currency, and ask who pays the transfer fee. Put it in writing.
Your next step
Pick two routes you can use today, fill in the five costs for each using a small test payment, and choose the one with the higher net figure. Save the comparison so you can redo it every few months.
Always apply through the employer's official website or verified channels. Genuine employers never ask applicants to pay for a job, training, or an interview.