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Cheapest Ways to Send Money from USA to Nigeria in 2025

Written by Noella Lepdung | Nov 4, 2025 6:15:01 AM

Nigerians in the diaspora send approximately $20.93 billion annually back home, making Nigeria one of Africa’s top remittance destinations.
But with traditional banks charging 4–6% in hidden fees and poor exchange rates, finding cheaper, faster alternatives is key.

In this 2025 guide, we break down the top low-cost money transfer services from the USA to Nigeria — including fees, speed, and reliability — so you can keep more of your hard-earned dollars.

Why Traditional Banks Are Expensive

Most U.S. banks charge 4–6% in total transfer costs through a mix of high service fees and poor exchange rates — a markup of 3–6% above the mid-market rate.

That means for a $1,000 transfer, you could lose $30–$60 compared to using a specialized transfer provider.

 Better option: Compare live USD→NGN rates on nairaCompare’s Money Transfer Tool before every transfer.

Top 5 Cheapest Money Transfer Providers (USA to Nigeria 2025)

1. Sendwave – Best for Zero Fees 

Sendwave remains the cheapest money transfer app to Nigeria in 2025, charging $0 transfer fees and offering one of the most competitive USD→NGN rates.

Key Features:
  • $0 fees, no hidden markups
  • Simple mobile app (iOS & Android)
  • 256-bit encryption + 2FA security
Ideal for regular transfers under $2,000

2. Remitly – Best Overall Value 

Based on data from the past 12 months, Remitly was the best overall app for sending money to Nigerian banks, as it was the cheapest option for 37% of all searches. 

Key Features: 
  • Promotional rates for first-time users 
  • Two options: Economy (cheaper) and Express (faster) 
  • Fees range from $1.49 to $3.99, depending on destination
  • Wide network of Nigerian bank partnerships 

Best for: Flexibility, reliability, and frequent transfers.

3. Wise (TransferWise) – Best for Transparency

Wise provides mid-market exchange rates with a fee of $8.23 + 0.51% for USD→NGN, visible upfront before confirmation. Wise scored highly in comparisons, offering the best option for a mix of cost, speed, and features for NGN transfers. 

Key Features:
  • No markup on exchange rates 
  • Transparent fee structure 
  • 64% of transfers arrive in under 20 seconds 
  • Multi-currency account available 

Pro Tip: Wise also ranks high for dollar accounts in Nigeria. Compare Wise and similar providers using nairaCompare’s Domiciliary Account Comparison

 

4. TransferGo – Best for Speed 

TransferGo currently offers zero fees to Nigeria, with transfers reaching recipients in less than half an hour—usually just 2 or 3 minutes. 

Key Features: 
  • Zero fees on all transfer types 
  • Instant transfers available 
  • Competitive exchange rates 
  • Bank transfer option 
 

5. Western Union – Best for Cash Pickup

Western Union remains the most reliable cash pickup provider, ranking as the 2nd cheapest for 19% of transfers.

Key Features:

  • Extensive cash pickup points in Nigeria

  • Multiple payout methods

  • 24/7 service availability

Ideal for: Recipients without bank accounts.

 

Cost Comparison Table (October 2025)

Provider Transfer Fee

Exchange Rate Markup

Best For Speed
Sendwave $0 -0.04% Small regular transfers 1–2 days
Remitly $1.49–$3.99 0.5–3% Overall value Minutes–3 days
Wise $8.23 + 0.51%

0% (mid-market)

Transparency Minutes–1 day
TransferGo $0 Competitive Speed 2–3 minutes
Western Union Varies Varies Cash pickup Minutes–hours

Rates are current as of October 2025 and may vary based on transfer amount and payout method

 

How to Choose the Right Provider

Need Recommended Provider
Zero fees on small transfers Sendwave
Flexible delivery & reliability Remitly
Transparent pricing Wise
Instant transfers TransferGo
Cash pickup availability Western Union

Money-Saving Tips for Diaspora Nigerians

Compare Before Every Transfer: Rates fluctuate daily. Use nairaCompare's money transfer comparison tool to find the best rate for your specific transfer amount. 

Choose Bank Transfers Over Cards: Bank transfers are the overall cheapest deposit option based on analysis of money transfer companies servicing Nigeria. Debit and credit cards typically incur higher fees. 

Send Larger Amounts Less Frequently: Minimize fixed fees by consolidating transfers when possible. 

Avoid Weekend Transfers: Exchange rates may be less competitive during weekends. 

Read more here: How to avoid overpaying when converting dollars to naira for money transfers. 

 

Grow your remittances with dollar funds

How to Send Money from the USA to Nigeria (Step-by-Step)

  1. Visit nairaCompare's send money tool to compare real-time rates 
  2. Select the provider offering the best rate for your amount 
  3. Create an account with a valid ID and proof of address 
  4. Add the recipient's details (bank account or pickup location) 
  5. Choose your payment method (bank transfer recommended) 
  6. Complete the transfer and save your tracking number 

Frequently Asked Questions

Q: What’s the cheapest way to send money to Nigeria?
Sendwave offers $0 fees and a -0.04% exchange rate markup, making it the cheapest option for most users.

Q: How long do transfers take?
TransferGo and Wise complete most transfers in under 3 minutes, while Sendwave and Remitly may take up to 1–3 days.

Q: Are these services safe?
Yes. All listed providers are regulated by FinCEN (USA) and the Central Bank of Nigeria (CBN), using encryption and authentication for security.

Q: Can I send money for cash pickup?
Yes — Western Union has the widest agent network for cash pickups in Nigeria.

Conclusion 

Sending money from the USA to Nigeria doesn't have to drain your wallet. By choosing specialized providers like Sendwave, Remitly, or Wise instead of traditional banks, you can save 50-75% on transfer costs.

Always compare rates using nairaCompare's comparison tool to get the best USD→NGN rates in real time to ensure you're getting the best deal available. 

Start saving today — compare, send, and enjoy more value per dollar.