Receive payments from UK clients in Nigeria

Nigeria is home to enormous talent, and UK-based companies and clients have taken notice. More Nigerian designers, developers, content writers, and virtual assistants now work for UK businesses and individual clients. All goes well and good until it is time to get paid, and things can go south quickly.

Local commercial banks are simply not built for this. Between your client's UK bank and your Nigerian account, there are currency conversion issues, high transfer fees, processing delays, and occasionally a payment method that doesn't work in Nigeria. The goal is a payment setup that minimises your losses, gives you swift access to your income, and lets you manage everything without breaking a sweat.

This article covers exactly how to receive payments from UK clients in Nigeria, including the options available, their benefits, and drawbacks, to help you make an informed decision.

Also read: Nigeria’s time zone advantage for remote work

Option 1: Direct bank transfer to a domiciliary account

This is one of the oldest methods, but still a reliable one for the right situation. A domiciliary account is a foreign currency account offered by Nigerian commercial banks. It lets you hold USD, GBP, or EUR without converting immediately to naira, and you can receive international transfers directly into it.

For a UK client to pay you this way, they initiate a SWIFT transfer from their UK bank to your dom account using your IBAN or account number and your bank's SWIFT/BIC code. Most UK banks charge £15-£30 for outgoing international wire transfers. Correspondent bank fees can also take a further cut in transit, meaning the amount that arrives is sometimes less than what was sent. Opening an account requires visiting the banking hall and a stressful onboarding process. This means dom accounts might be best suited for large, infrequent one-off transfers where the client insists on traditional bank infrastructure.

Processing typically takes two to five business days. For a client who is not particularly tech-savvy and is uncomfortable with newer platforms, this may occasionally be the only route they are willing to use.

Option 2: A virtual GBP account

The most efficient way to receive GBP from UK clients regularly is through a virtual GBP account with UK banking details. This provides you with a sort code and account number, just like a regular UK bank account. You share these details on your invoice, and your client pays you exactly as they pay anyone else in the UK, through Faster Payments or BACS. You are not worried about the complexities of international wire transfers, high bank fees, and long wait times. Faster Payments, as the name suggests, typically arrive within hours.

Several platforms offer virtual GBP accounts to Nigerians. Here is how the main ones compare:

• Grey:  provides virtual GBP accounts alongside USD and EUR, meaning you can receive pounds from UK clients on the same platform you use for the rest of your international income. Payments are swift, conversion rates are competitive, and withdrawal to your Nigerian bank account is straightforward. Your account details also work with freelancing platforms like Upwork and Fiverr. The deposit fee is 1% of the amount received, and withdrawal to a local bank costs ₦35 per transaction. For freelancers managing income from multiple currencies across multiple clients, having everything under one roof is a genuine advantage.
• Raenest: You might know them as Geegpay. This payment platform supports GBP accounts, as well as USD and EUR. GBP deposits attract a 0.7% fee with a minimum of 1.5 GBP. It offers one of the lowest withdrawal costs on the market.
• Wise: issues UK sort codes and account numbers that support Faster Payments and BACS, and converts at the mid-market rate with transparent fees. The transparency is genuinely good. The limitation is that Wise's Nigeria functionality has been inconsistent. Test with a small transfer before making it your primary setup, and check current availability before signing up.
• LemFi: The newly introduced LemFi global account is designed for Nigerian freelancers and residents to manage foreign income and remittances. You can create an account using your Nigerian phone number, international passport, Bank Verification Number (BVN), and proof of residence. Once you set up your account, you can request a GBP account and share the details with your UK client to receive your payment.

Virtual GBP accounts are best for freelancers and remote workers who receive regular GBP payments from UK clients and want a fast and affordable setup.

Also read: Alternatives to domiciliary accounts in Nigeria

Option 3: Payoneer

Payoneer is one of the most popular payment solutions in the Nigerian freelancing space, especially if you are working on freelancing platforms. Many such platforms have Payoneer as an integrated payout option, and receiving marketplace income through it avoids the need for separate banking details.

The downside for many Nigerian freelancers is the cost. From markups on conversion rates to withdrawal fees and the annual account fee, freelancers lose a chunk of their earnings to platform fees.

Option 4: Deel and similar contractor platforms

If you are a remote worker in a structured, long-term agreement, then payroll services like Deel handle the payment infrastructure on both sides. The UK company pays Deel, and Deel handles the rest. You receive payments via a local payout method available in Nigeria, including naira direct transfers.

However, Deel is unlikely to work for freelancers juggling multiple short gigs. It is better suited to longer-term work relationships where one client pays you on a regular, predictable schedule. This arrangement takes the burden of payment from you and the employer.

Comparing options for receiving payments from UK clients

Here is a comparison to give you a clear picture of some of the payment options when working with UK clients from Nigeria.

What to look out for when choosing an option

Choosing the right payment setup depends on your specific situation, but a few things are worth checking regardless of which option you are leaning towards.

• Fees: Review the transaction charges imposed to ensure you are not losing a lot of money. Even on platforms without transaction fees, you should check the conversion rate for hidden markups. Add the full cost of a transaction, including the deposit, conversion, and withdrawal fees, before deciding which option is cheapest.
• Withdrawal speed: The transaction speed determines how quickly you can access your earnings. If you need money urgently, prioritise platforms that offer swift withdrawals.
• Reliability in Nigeria: Some platforms work better in other countries than in Nigeria. Some have restrictions on naira withdrawals or inconsistent service in the Nigerian market. Reading recent reviews from Nigerian users, and not foreign users, is the most reliable way to confirm this before committing.
• Transaction limits: Some platforms cap how much you can receive per month or per transaction at certain verification tiers. If you expect large or high-frequency payments, confirm that the limits apply to your situation before sharing your account details with a client.
• Ease: Opt for simpler payment options to improve your client's payment experience and get paid faster. A setup that requires your client to navigate international wire instructions, fill in extensive transfer forms, or pay high outgoing fees can be stressful.

Receive GBP payments from UK clients with Grey

Managing international payments from UK clients is much easier now with digital payment solutions and payroll systems. Grey provides Nigerian freelancers and remote workers with virtual GBP accounts with real UK sort codes and account numbers. With these details, UK clients need to pay you exactly as if it were a local transfer.  You can also manage USD and EUR payments on the same platform, convert at competitive rates, and withdraw to your Nigerian bank account quickly. Grey cards offer greater flexibility for international payments on purchases and subscriptions.

Start managing your GBP payment without hassles today. Sign up on Grey and download the app to get your GBP banking details within minutes.

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