Handling money effectively is essential for any international trip. When traveling to Nigeria, understanding the local currency (Naira - NGN), where to exchange money, and how to use cards safely will make your financial transactions smoother. Here are key tips for managing your money in Nigeria.

The Nigerian Naira (NGN)

Nigeria's official currency is the Naira (symbolized as ₦ or NGN). Understanding its denominations and relative value will help you manage your finances effectively:

  • Banknotes: The most common denominations are ₦1000, ₦500, ₦200, ₦100, ₦50, ₦20, and ₦10 notes. The newer polymer notes (higher denominations) feature enhanced security features.
  • Coins: ₦2, ₦1, and kobo coins (100 kobo = ₦1) exist but are rarely used in day-to-day transactions.
  • Exchange Rates: The Naira has experienced significant fluctuations in recent years. As of early 2025, approximate exchange rates are:
    • 1 USD ≈ ₦1,500-₦1,600
    • 1 EUR ≈ ₦1,600-₦1,700
    • 1 GBP ≈ ₦1,900-₦2,000

Due to the Naira's volatility, it's advisable to check current exchange rates before your trip. Currency apps like XE or OANDA provide up-to-date information.

Exchanging Currency

Several options exist for exchanging foreign currency to Naira, each with advantages and considerations:

Airport Exchange Bureaus

  • Pros: Convenient, especially upon arrival; official and regulated
  • Cons: Typically offer less favorable rates (10-15% below market rates)
  • Locations: Found in international terminals at Lagos (LOS), Abuja (ABV), and Port Harcourt (PHC) airports
  • Recommendation: Exchange only a small amount (enough for immediate transportation and first-day expenses)

Banks

  • Pros: Safe, regulated, transparent receipts
  • Cons: Limited operating hours, potential for queues
  • Documentation: May require passport identification for larger exchanges
  • Popular Banks: First Bank, UBA, Zenith Bank, Access Bank, and GTBank have extensive branch networks in major cities

Licensed Bureau de Change (BDCs)

  • Pros: Often offer better rates than airports, more negotiating room
  • Cons: Quality varies; need to verify legitimacy
  • Where to Find: Shopping malls, major hotels, and designated exchange areas in cities
  • Tip: Always ask for a receipt and count your money carefully before leaving

Important Warning: Avoid street currency exchangers offering seemingly attractive rates. These unregulated exchanges pose significant risks including counterfeit notes and potential scams. Always use official channels.

Compare Before Exchanging: Exchange rates can vary significantly between providers. Check multiple options and inquire about any hidden fees or commissions. Some places advertise "no commission" but compensate with less favorable exchange rates.

Using ATMs

ATMs (cash machines) are a convenient way to access the local currency, especially in urban areas:

Availability

  • Airports: Multiple ATMs are available in the arrival halls and public areas of international airports
  • Cities: Widely available in Lagos, Abuja, Port Harcourt, and other major cities
  • Hotels: Most upscale hotels have ATMs on or near their premises
  • Shopping Centers: Malls and large supermarkets typically have multiple ATMs
  • Rural Areas: Limited availability; plan ahead if traveling to smaller towns

Cards and Networks

  • Compatible Networks: Visa and Mastercard are widely accepted
  • Less Common: American Express and Discover have limited acceptance
  • Reliability: ATMs at major banks like GTBank, Zenith, UBA, and First Bank tend to be most reliable

Withdrawal Limits and Fees

  • Typical Limits: ₦20,000-₦150,000 per transaction (varies by bank)
  • Daily Limits: Check with your home bank regarding your daily international withdrawal limit
  • Local ATM Fees: ₦100-₦1,000 per withdrawal (depending on your card and the local bank)
  • Foreign Transaction Fees: Your home bank typically charges 1-3% on international withdrawals
  • Currency Conversion: Some ATMs offer to convert to your home currency (Dynamic Currency Conversion) - always choose to be charged in Naira to avoid unfavorable conversion rates

Safety Tips for ATM Use

  • Use ATMs located inside bank branches during daylight hours when possible
  • Shield the keypad when entering your PIN
  • Check for any suspicious devices or people before using the machine
  • Avoid ATMs in isolated locations, especially after dark
  • Immediately put away cash after withdrawal

Credit and Debit Cards

Card acceptance in Nigeria varies widely depending on location and establishment type:

Where Cards Are Typically Accepted

  • High Acceptance:
    • International hotels and upscale accommodations
    • Formal restaurants in major cities
    • Shopping malls and large supermarkets (Shoprite, Spar)
    • Large retail chains and department stores
    • Major airline offices and some travel agencies
  • Limited or No Acceptance:
    • Local markets and street vendors
    • Small local restaurants and shops
    • Transportation services (taxis, buses)
    • Rural areas and smaller towns

Card Types

  • Visa and Mastercard have the widest acceptance
  • American Express is accepted at some high-end establishments
  • Discover and other cards have very limited acceptance

Important Considerations

  • Notify Your Bank: Inform your card issuer of your travel dates to prevent automated fraud blocks on your card
  • Foreign Transaction Fees: Most cards charge 1-3% on international purchases - check with your issuer before traveling
  • Dynamic Currency Conversion: When a merchant offers to charge in your home currency, decline and choose to pay in Naira (local currency) to avoid unfavorable exchange rates
  • Keep Contact Information: Have your card issuer's international contact number easily accessible in case of issues
  • Verification: Some merchants may request to see your passport along with your credit card

Contactless Payments: Contactless technology is increasingly available in urban areas and major establishments, particularly in Lagos and Abuja. However, it's not yet universal, so don't rely exclusively on tap-to-pay functionality.

Cash vs. Card: When to Use Each

Strategic use of cash and cards will enhance your financial security and convenience:

When to Use Cash

  • Markets and street vendors - essential for haggling and purchasing souvenirs
  • Local transportation - taxis, buses, motorcycle taxis (okadas), and three-wheeled keke napeps rarely accept cards
  • Small restaurants and food vendors - most local eateries are cash-only
  • Tips for service staff - including hotel porters, tour guides, and restaurant servers
  • Rural areas - where card acceptance infrastructure is limited
  • Emergencies - during power outages when card systems may be down

When to Use Cards

  • Hotel stays - especially for securing reservations and paying larger bills
  • High-value purchases - for security and potential purchase protection
  • Upscale restaurants - particularly in Lagos, Abuja, and other major cities
  • Car rentals - required for reservations and security deposits
  • Online purchases - booking domestic flights or attractions in advance

Finding Balance: A good strategy is to use cards for larger expenses and secure transactions while keeping sufficient cash for day-to-day expenses. This minimizes both the risk of carrying large sums and excessive ATM fees from multiple small withdrawals.

Safety and Budgeting Tips

Manage your money safely and effectively during your Nigerian travels:

Safety Measures

  • Distribute cash - keep money in multiple secure locations rather than all in one wallet
  • Use money belts or hidden pouches for larger sums, particularly in crowded areas
  • Be discreet when handling cash - avoid displaying large amounts in public
  • Keep a small amount in an accessible wallet for routine purchases
  • Maintain an emergency reserve in a secure location (hotel safe or hidden compartment)
  • Make photocopies of credit cards and travel documents; store separately from originals
  • Use caution at night when visiting ATMs; go with a companion when possible

Budgeting Guidance

  • Typical Daily Costs (as of 2025):
    • Budget traveler: ₦20,000-₦40,000 per day
    • Mid-range traveler: ₦40,000-₦80,000 per day
    • Luxury traveler: ₦80,000+ per day
  • Transportation:
    • Airport taxi to city center: ₦5,000-₦15,000 (depending on city)
    • Local taxi/ride-share: ₦1,500-₦5,000 per trip within city
    • Public transport: ₦100-₦500 per journey
  • Meals:
    • Street food/local eatery: ₦500-₦2,000
    • Mid-range restaurant: ₦3,000-₦7,000
    • High-end restaurant: ₦10,000-₦20,000+

Tracking Expenses

  • Use mobile apps like XE, Trail Wallet, or Mint to record expenses
  • Save receipts, especially for business travel or reimbursable expenses
  • Set daily spending limits and monitor adherence
  • Account for unexpected expenses with a contingency buffer (10-15% of total budget)

Conclusion

Managing your money effectively in Nigeria requires a combination of preparation, awareness, and flexibility. While cash remains king in many situations, card infrastructure continues to improve in urban centers. By understanding your options for currency exchange, ATM usage, and payment methods, you can focus on enjoying your Nigerian experience without financial stress. Remember that conditions and exchange rates change - check for the most current information before your trip and stay alert to your surroundings when conducting financial transactions.