How to Use Cash in Nigeria: A Comprehensive Guide
Nigeria, the most populous country in Africa, has a cash-driven economy. According to the Central Bank of Nigeria, over 60% of transactions are still conducted in cash. However, with the advent of technology and the push towards a cashless economy, it is important to know how to use cash effectively in Nigeria. In this article, we will discuss everything you need to know about using cash in Nigeria, including where to withdraw cash, how to handle and store cash, and tips for keeping your money safe.
Table of Contents
Understanding the Nigerian Currency
The Nigerian currency is called the Naira (NGN). It is divided into smaller units of kobo. One Naira is equivalent to 100 kobo. The most common denominations of the Naira are the 1000, 500, 200, 100, 50, 20 and 10 Naira notes. It is important to note that the Nigerian currency is subject to fluctuations, so it is advisable to keep up to date with the exchange rate if you are using foreign currency.
Where to Withdraw Cash
ATMs are widely available in Nigeria, especially in major cities. You can withdraw cash from ATMs using a debit card. However, it is important to note that some ATMs charge a withdrawal fee, so it is advisable to use ATMs from your own bank to avoid additional charges. Also, make sure to withdraw cash from trusted and secure locations to avoid being scammed or robbed.
How to Handle and Store Cash
When handling cash in Nigeria, it is important to be cautious and vigilant. Always count your money before leaving the bank or ATM to ensure that you have received the correct amount. Store your cash in a secure and discreet location. It is advisable to carry only the necessary amount of cash for your daily transactions and avoid carrying large amounts of cash that can attract unwanted attention.
Tips for Keeping Your Money Safe
Nigeria has a high rate of financial fraud and theft. Here are some tips for keeping your cash safe:
- Avoid carrying large sums of cash.
- Be cautious when using ATMs and avoid using ATMs in isolated or poorly lit areas.
- Keep your PIN confidential and do not share it with anyone.
- Check your account balance regularly to detect any unauthorized transactions.
- Use secure and encrypted online payment platforms for transactions.
How to Make Payments with Cash
Cash is the most common form of payment in Nigeria. You can use cash to pay for goods and services at stores, markets and restaurants. When making payments with cash, always ensure that you receive a receipt or proof of payment. This will help you keep track of your expenses and avoid being overcharged.
How to Exchange Foreign Currency
Foreign currency can be exchanged at authorized banks and bureaux de change in Nigeria. It is important to exchange foreign currency at authorized locations to avoid being scammed or receiving counterfeit currencies. It is advisable to carry your passport or any other form of identification when exchanging foreign currency.
Using cash in Nigeria can be easy and convenient if you follow the guidelines outlined in this article. Always handle your cash with care and store it in a secure location. Be cautious when using ATMs and avoid carrying large amounts of cash. Make sure to keep track of your expenses and always ask for a receipt or proof of payment when making transactions. By following these tips, you can effectively use cash in Nigeria without falling victim to financial fraud or theft.
Frequently Asked Questions
Can I use foreign currency to make payments in Nigeria?
- No, foreign currency is not accepted as legal tender in Nigeria. You have to exchange your foreign currency for Naira to make payments.
Is it safe to withdraw cash from ATMs in Nigeria?
- Yes, it is safe to withdraw cash from ATMs in Nigeria as long as you use ATMs from trusted and secure locations.
Can I exchange foreign currency at the airport in Nigeria?
- Yes, you can exchange foreign currency at authorized bureaux de change at the airport in Nigeria. However, the exchange rates may not be favorable.
How do I know if an ATM is secure?
- Look out for ATMs in well-lit areas that have security cameras and guards. Avoid using ATMs that have been tampered with or appear suspicious.
Can I use a credit card to withdraw cash in Nigeria?
- Yes, you can use a credit card to withdraw cash in Nigeria, but it may attract additional fees and charges. It is advisable to use a debit card to avoid these charges.