Germany has one of the largest Nigerian diaspora communities in Europe. Whether you are supporting family in Lagos, paying a contractor in Abuja, or settling a business invoice in Port Harcourt, the method you choose determines how much of your money actually arrives.
The cost difference between the most expensive and cheapest options is significant. A German bank charging 5% to 7% in total fees and exchange rate markup costs €50 to €70 on a €1,000 transfer. Meanwhile, some fintech platforms offer the same transfer for under €10, and transfers between Grey accounts via GreyTag are free. That gap, repeated monthly over a year, adds up to several hundred euros in avoidable losses.
This article covers five methods for sending money from Germany to Nigeria, the costs of a €500 transfer for each, how long each takes, and step-by-step instructions for the most practical options.
The Central Bank of Nigeria floats the naira. This means the exchange rates are determined by the forces of demand and supply. Invariably, the amount the receiver gets when sending money to Nigeria can vary within a short timeframe, even with the same payment method. So, timing conversions are important now more than ever.
Whether you are opting for cash pickups, traditional banks, remittance services, or multi-currency accounts determines the mechanism by which the EUR moves from Germany to Nigeria. It also determines:
It is also important to compare rates and look out for hidden fees and markup on exchange rates. Just imagine a loved one needs 200,000 naira urgently, and you send the EUR equivalent from your German bank, with some change as a buffer, only to find out the recipient got 190,500 naira about four days later because 9,500 naira was lost to a 3% conversion rate markup and undisclosed intermediary bank charges. Sending the deficit would mean having to wait another three to five days.
The most familiar option for anyone with a German bank account at Deutsche Bank, Commerzbank, Sparkasse, or online banks like N26 or DKB. International transfers to Nigeria are processed via SWIFT, and the payment goes through one or more correspondent banks before reaching the recipient's Nigerian bank.
Cost structure: The German bank charges an outgoing international wire fee, typically €15 to €40, depending on the bank and transfer method. Each intermediary bank deducts handling fees of €10 to €25 in transit. The recipient's Nigerian bank converts EUR to NGN at their own rate, typically 2% to 5% below the mid-market rate. Processing takes three to five business days.
For a €500 transfer, the total cost, including fees and the exchange rate markup, is €50 to €90, or 10% to 20% of the amount. Because you cannot predict how many intermediary banks will handle the transfer, neither you nor the recipient knows the exact amount that will arrive until it lands.
How to send:
German banks are better suited for large, infrequent transfers, where the fixed cost represents a small percentage of the total. For small or regular amounts, the cost is disproportionately high.
Also read: How to receive USD payments on Etsy as a seller in Germany
Remittance services are cross-border money transfer platforms, typically used by foreign workers to send money to their families in their home countries. These services usually maintain partner bank accounts in both countries. When a sender initiates a EUR payment to a naira account, the EUR moves to the platform's EUR account in Europe, and the recipient in Nigeria is credited the naira equivalent from the platform's NGN account in Nigeria. Technically, the transfer involves two domestic transactions rather than one international wire, which is why it is faster and cheaper than a SWIFT transfer through a traditional bank.
Tip: When funding your remittance account, SEPA bank transfer from your German bank is typically free or near-free. Card funding often incurs a 1% to 2% surcharge on top of the platform's fee. Use SEPA where possible to keep costs down.
How to send:
Wise applies the mid-market exchange rate on currency conversions with a clearly disclosed fee before you confirm. For EUR to NGN, the fee typically ranges from 0.4% to 1.5%, depending on the amount and payment method. On a €500 transfer, the total cost is approximately €2 to €7.50. The sender sees the exchange rate being applied, the exact fee in euros, and the exact naira amount the recipient will receive.
Wise is available to German residents and can be funded via SEPA bank transfer or card. You can open an account online within minutes. Transfers to Nigerian bank accounts typically settle within one business day, and in many cases, the same day.
Grey offers a different model from traditional remittance services. Instead of converting the sender's EUR to NGN and delivering naira, Grey allows the sender to transfer euros directly to the recipient's Grey EUR account. The recipient then converts to naira on their own terms, choosing when to convert based on the rate, and withdraws to their Nigerian bank account.
This works in two ways, depending on whether the recipient has a Grey account.
If the recipient has a Grey account (GreyTag route), the sender transfers EUR from their Grey EUR balance to the recipient's Grey account via GreyTag. This transfer is instant and free. No conversion fee, no transfer fee, no waiting. The recipient receives euros in their Grey EUR balance. They can then convert EUR to NGN within the Grey app at a 1% conversion fee, capped at $6 (approximately €5.50), with the rate shown before they confirm. Withdrawals to a Nigerian bank account cost ₦35 and are instant.
If the recipient does not have a Grey account, The sender can share their Grey EUR IBAN with any German bank and fund it via SEPA (0.8% deposit fee, minimum €2, maximum €10). However, to send the money onward to Nigeria, the recipient would need a Grey account to receive the EUR and handle the conversion. The simplest approach is for the recipient to sign up for a free Grey account, after which the sender transfers via GreyTag at zero cost.
The total cost for a €500 transfer via Grey (GreyTag route): €0 transfer fee + approximately €5 conversion fee (1% capped at $6) + ₦35 withdrawal fee. Total: approximately €5, or 1%. If the sender funds their Grey account via SEPA first, add the 0.8% deposit fee (€4 on €500), bringing the total to approximately €9, or 1.8%.
The advantage Grey offers over remittance services is control over conversion timing. With Remitly or WorldRemit, the conversion happens at the moment of transfer at whatever rate the platform offers. With Grey, the recipient holds EUR and converts when the rate suits them. For regular transfers, this flexibility can add up to meaningful savings.
Western Union's edge is cash pickup speed and its widespread agent network across Nigeria. For recipients who need cash quickly or don’t have a bank account, Western Union's network covers most cities and towns. Cash pickup transfers can be available within minutes of the sender confirming.
Transfers can be initiated entirely online or via the WU app without visiting an agent in Germany.
How to send:
Fees vary by payment method but typically range from €3.99 (online) to over €8 (at an agent location). The exchange rate includes a margin. Check the total naira the recipient will receive before confirming, not just the headline fee.
Also read: How to get an instant USD debit card in Germany
For the sender (in Germany):
For the recipient (in Nigeria):
The sender and recipient steps can be communicated in advance so that both parties know the process. The recipient has full control over when to convert, which is especially valuable when the naira is volatile.
Note: Exchange rates on Grey are variable and include a margin over the mid-market rate. The rate is always shown before you confirm a conversion. Deposits via SEPA incur a 0.8% fee (minimum €2, maximum €10). Conversions are charged at 1%, capped at $6 equivalent. Withdrawal to a Nigerian bank account costs ₦35. For current pricing, visit grey.co/fee-calculator.
For bank transfers and remittance platforms, you need the recipient's full name as registered with their bank, their Nigerian bank account number, and the bank's SWIFT or BIC code. For some platforms, only the account number and bank name are required. For GreyTag transfers on Grey, only the recipient's GreyTag identifier is needed. Always confirm recipient details before initiating a transfer, as incorrect details cause delays or returned funds.
German bank SWIFT transfers take three to five business days. Wise typically settles within one business day, often the same day. Remitly Express arrives within minutes to a few hours. Western Union cash pickup can be available in minutes. Grey GreyTag transfers between Grey accounts are instant. The recipient's conversion from EUR to NGN within Grey and withdrawal to a Nigerian bank account also takes only minutes.
For transfers between Grey account holders, the GreyTag route is free for the sender. The recipient pays the conversion fee (1% capped at $6) and withdrawal fee (₦35). Total cost on €500 is approximately €5 to €9 depending on whether the sender funded via SEPA. For senders without Grey, Wise and Sendwave consistently offer the lowest total cost when you compare the naira the recipient actually receives. Always compare total value received, not just the headline fee.
Regulated platforms operating under licensed financial infrastructure are generally safe. Wise is regulated by BaFin in Germany and the FCA in the UK, among other authorities. Remitly holds licences across multiple EU jurisdictions. Grey is regulated by FinCEN in the United States and FINTRAC in Canada. Western Union is regulated across all its operating markets. Unregulated informal platforms offering rates significantly above mid-market carry meaningful counterparty and fraud risk.
Yes. The GreyTag transfer route requires both the sender and recipient to have Grey accounts. The recipient signs up for free at grey.co, receives the EUR in their Grey balance, and converts to naira when they choose. If the recipient does not want to open a Grey account, the sender should use an alternative method (Wise, Remitly, WorldRemit, or a bank transfer) that delivers directly to a Nigerian bank account.
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Ready to send money from Germany to Nigeria? Sign up at grey.co or download the Grey app. Fund your EUR account via SEPA, send to any GreyTag recipient instantly and for free, and let them convert to naira at 1% capped at $6.
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