Answers: A, B & D
Purchases and bills
Nigeria is a cash-oriented society, and many goods and services must be purchased with local currency or checks. While larger businesses and hotels in Nigeria often accept credit cards, few others do. Plan to bring – or have access to – enough cash to cover your stay.
Automated teller machines
ATMs are fairly common in cities. Cards with Visa, MasterCard or American Express are used by a variety of bank networks. Machines generally issue funds in naira or euros. ATMs in smaller towns may have lower withdrawal limits, and can run out of funds. Service charges apply, and should be weighed against exchange rates to determine the ATM provider who offers the best value.
Note that ATMs in Nigeria are not always safe. Card skimming and theft are not uncommon. Use ATMs located inside banks or in public areas with security.
Credit and debit cards
Credit cards are accepted at most international hotels and business establishments in cities. Some establishments, however, may require cash or a locally issued credit card. Visa and Mastercard are the most common emblems.
Because many credit card providers block transactions that originate from Nigeria due to fraud concerns, advise your provider of your travel plans prior to departure. Monitor your credit card activity and statements carefully.
e-ID cards
Nigerians and legal residents over the age of 16 can opt to link their identity card to bank accounts, and use the card for payment. These cards have a smart chip and Mastercard emblem, and link to biometric data. For more information about the e-ID card, visit the National Identity Management Commission website.
Mobile payment systems have begun to take hold in Nigeria. Two of the largest services are Paga and mCash. Both allow customers to send money to an individual, pay a bill, or make a purchase at select merchants. Before selecting a mobile payment provider, it is important to research fees, participating banks, and network services.
Bill payment
Several utility companies, such as Ikeja Electric and Lagos Water, have online payment portals that accept cards and bank transfers. It is also possible to set up transfers from your bank directly or via mobile payment. It is not always possible to pay bills using a credit card. To prevent fraud, some services require money be directly debited from your bank account.
Excerpted from Living Abroad's International Relocation Center Report on Nigeria in the Finances section.
Written by Michael Cadden, SGMS-T, VP International Operations
