Naira Account for Foreign Companies: Collect From Nigeria

A foreign company can collect naira from Nigerian customers without a Nigerian entity by getting NGN Local Account details from Verto. Your customers pay those details by domestic transfer over NIBSS Instant Payment, and the naira lands in your Verto NGN wallet, in your company's name. You then hold it or convert it when the rate suits you. Here is how to set it up, step by step, and what to check if a payment doesn't arrive.

Check what you need before you start

If your customers are in Nigeria and your company is registered elsewhere, you are probably being asked to take payment in naira or lose the deal. A little preparation makes the set-up quicker.

• Your company documents. Verto asks for KYB documents on your business and its shareholders.

• A list of your Nigerian customers. Note who pays you, how often, and roughly how much, so you know what to expect in the wallet.

• A plan for the naira. Decide how much you will hold for local costs and how much you will convert to a currency such as USD, GBP or EUR.

Confirm that you are eligible

Verto issues local account details in your business's name, subject to eligibility checks for each currency. Availability depends on your business profile and where you are registered.

For example, a UK business can open a Verto account, complete verification and request NGN details, which are generated instantly once the account is approved. In most cases you do not need a subsidiary in Nigeria. If you plan to hire staff or sign leases there, take local legal and tax advice, because Local Accounts let you get paid like a local business but do not make you one.

Create and verify your business account

1. Sign up on Verto's registration page and enter your company details.

2. Upload shareholder IDs and your business documents. Verto's onboarding team reviews them, and timelines depend on how quickly the documents are complete.

3. Once you are approved, find your wallets. You start with USD and your home currency wallet, and you can add more, including NGN, from the Wallets page of your Multi-currency Wallets.

Request your NGN account details

Open your NGN wallet and request Local Account details. These are Nigerian account details issued in your business's name, so your customers can pay you as they would pay any Nigerian supplier.

For some currencies Verto issues dedicated details, while for others you use a shared account with a unique reference that identifies your payments. Either way, funds reflect automatically once the payment is received.

Put the details on every invoice

Replace your international wire instructions with the NGN details. Add a short instruction, for example: "Pay in naira by bank transfer to the account below and quote your invoice number as the reference."

Your customers add the details in their own banking app and pay by domestic transfer over NIBSS Instant Payment, Nigeria's real-time interbank service. They no longer need to source dollars or send an international wire. Ask regular customers to update their supplier records so old instructions are not reused.

Match each payment to an invoice

Reconciliation is easier when you agree the reference before the first payment arrives. Ask customers to quote the invoice number every time. Your team can then match naira received to invoices raised without chasing.

If several people in your team need to see the money, give them access that fits their role. Verto lets you give read-only access to view balances and transactions, or read-and-write access to add wallets and manage money.

Decide when to convert the naira

Collecting in naira only helps if you control when you convert. Holding the balance means you are not forced to accept the rate on the day the money lands.

• Exchange Now converts between your wallets at a live rate, 24/7, 365 days a year.

• Exchange Deal lets you lock in a rate for 24 hours when you want certainty before the funds are in place.

• Several wallets in the same currency let you keep operating cash and tax money apart.

FX is priced by currency band, so check your plan on Verto's pricing page before you set a conversion schedule. Nigeria has exchange-control rules that can affect moving naira out of the country, so confirm your own position with a local adviser.

Fix the common hold-ups

If a payment doesn't arrive as expected, check these first:

• The customer used old details. They may have saved a previous instruction. Send the NGN details again.

• The customer sent an international wire. NGN details are built for domestic transfers. Ask their bank to send a local payment.

• The payer is an individual. Other businesses can pay into a Local Account by default. Payments from individuals are available for selected industries, such as travel and education, subject to approval.

• Verification is incomplete. Local account details are available once your account is approved.

Your checklist

Before your first Nigerian customer pays, make sure you have:

1. Completed verification and found your NGN wallet.

2. Requested NGN Local Account details.

3. Updated every invoice template and told regular customers how to pay.

4. Agreed an invoice-number reference for reconciliation.

5. Decided when you will hold and when you will convert.

Ready to put it into practice? Get started with Verto, or speak to sales if you'd like a walkthrough. For a wider look at getting paid abroad without a subsidiary, read our guide on opening a business account in another country without a local entity.