How to Pay Nigerian Employees in USD: Step by Step Guide
Paying employees or freelancers from Nigeria can be challenging for international companies. High transfer fees, poor exchange rates, and long processing times often mean your team members lose a significant portion of their earnings. This guide explains how to pay Nigerian employees in USD efficiently while minimizing costs.
Why Your Nigerian Employees Need a Global USD Account
When hiring remote workers or employees from Nigeria, providing USD compensation is often preferred. Many Nigerian professionals work with international clients and prefer to receive payments in USD to:
- Avoid immediate currency conversion losses
- Maintain purchasing power against NGN fluctuation
- Access better exchange rates when they choose to convert
- Build savings in a stable currency
However, traditional Nigerian bank accounts aren’t designed for seamless USD receipt from international employers. Local banks like GTBank, Zenith Bank, Access Bank, and First Bank of Nigeria charge substantial fees for incoming international transfers, and USD to NGN conversion rates are often unfavorable.
The Hidden Cost of Traditional Payment Methods
Many employers don’t realize how much their Nigerian employees actually lose in the payment process.
Wire Transfers and SWIFT Payments
- Sending fees: $25–$45 per transfer
- Receiving fees: $10–$30 charged by Nigerian banks
- Exchange rate markup: 2–4% below market rate
- Processing time: 3–5 business days
Payment Platforms (Payoneer, Wise, etc.)
- Transaction fees: 3–5% per transfer
- Withdrawal fees: Additional charges when moving funds to local NGN accounts
- Exchange rate spread: 1–3% markup
Combined, these fees can cost 5–10% of the total payment, meaning a $1,000 salary becomes only $900–$950 by the time it reaches your employee’s local NGN account.
ACH: The Cheapest, Fastest, and Most Secure Way
The solution is ensuring your Nigerian employees have access to USD accounts with ACH (Automated Clearing House) account details.
What is ACH?
ACH is the US banking network used for direct deposits and electronic transfers — the same system used for domestic US payroll. ACH transfers are:
- Cheap: Often free or under $1 per transfer
- Fast: 1–2 business days
- Secure: Bank-level encryption and fraud protection
- Reliable: Used for billions of transactions annually in the US
Why ACH Matters for Paying Nigerian Employees
When your Nigerian employees have a USD account with ACH routing and account numbers, you can pay them just like US-based employees:
- Add their ACH details to your payroll system
- Process payments through ACH direct deposit
- Funds arrive in their USD account within 1–2 days
This eliminates expensive international wire transfers entirely and significantly reduces fees.
Setting Up USD Payments for Employees from Nigeria
Ensure Employees Have USD Accounts with ACH Details
Your Nigerian employees need a USD account that provides:
- A US routing number (9 digits)
- A US account number
- ACH receiving capability
Traditional Nigerian banks don’t offer these features. Employees need a global USD banking solution designed for international remote workers — such as nsave.
The nsave Solution: Complete USD Banking for People from Nigeria
nsave provides Nigerian employees and freelancers with everything they need to receive USD payments efficiently.
USD Account with ACH Details
- US routing and account numbers for direct deposit
- Receive ACH transfers from any US employer or client for free
- Hold funds in USD without forced conversion
NGN Conversion When Needed
When your employees want to access local currency, nsave offers:
- Just $1 flat fee to convert USD to NGN
- Market-leading exchange rates
- Direct transfer to Nigerian bank accounts at major banks (GTBank, Zenith Bank, Access Bank, First Bank, and more)
Example savings: A Nigerian employee receiving $2,000/month saves roughly $100–200 monthly compared to traditional payment methods — that’s $1,200–2,400 annually kept in their pocket instead of lost to fees.
Frequently Asked Questions
Q: How long does an ACH payment take to reach the USD account?
A: ACH transfers typically take 1–2 business days, regardless of where the account holder lives.
Q: Can employees convert their USD to NGN easily?
A: Yes, they can convert USD to NGN for just $1 and transfer directly to their Nigerian bank account at competitive rates.
Q: What’s the minimum amount I can send via ACH?
A: Usually, there’s no minimum for ACH transfers, making them suitable for any payment amount. Check with your payroll provider for specific policies.
Q: Do I need a US company to pay via ACH?
A: Having a US bank account simplifies ACH payments, but some international payroll platforms allow non-US companies to process ACH payments to USD accounts with US banking details.
Q: What information do I need from my Nigerian employees?
A: You need their US routing number (9 digits), US account number, full legal name, and confirmation that the account can receive ACH deposits.
Q: What are the next steps to onboard employees?
A: We offer two solutions — your employees can onboard seamlessly on their own, or you can reach out to the nsave team for guidance and resources to support your team’s setup.
Conclusion: Maximize Earnings for Your Nigerian Team
Paying employees from Nigeria in USD doesn’t have to be expensive or complicated. By ensuring your team has access to USD accounts with ACH details, you can process payments as efficiently as domestic payroll — while helping them keep more of what they earn.
Traditional wire transfers and payment platforms add layers of unnecessary cost. ACH direct deposit to a global USD account like nsave is the cheapest, fastest, and most secure solution.
With nsave, your Nigerian employees get:
- Free ACH receiving for direct deposit
- USD account with US banking details
- $1 flat fee conversion to NGN when needed
- Best available exchange rates
- Direct transfers to any local Nigerian bank
This approach saves your team hundreds or even thousands of dollars annually. Money they’ve earned and deserve to keep. Whether you’re paying freelancers, contractors, or full-time employees from Nigeria, ACH-enabled USD accounts are the smart solution for international payroll.
Get started with nsave for your Nigerian team
Ready to streamline your payroll and maximize your team’s earnings? nsave helps international employers pay people from Nigeria efficiently while ensuring they keep more of their hard-earned money.
