Who is this for?
This content is designed for participants in Anti Entropy's SparkWell fiscal sponsorship program. While some context will be specific to SparkWell and may need more context, we've made these resources public because they may, nevertheless, be useful to others who may be founding or building an organization.
Payments to Nigerian vendors and partners often take longer than other international transfers. Stricter compliance scrutiny on the receiving side, especially for transfers above $10,000, results in delays of several weeks. Preparing the right documentation upfront is the most effective way to keep payments moving.
This article was created in May 2026 and will likely be partially out of date as things change. This article provides general operational guidance and is not legal, tax, or financial advice. Nigerian banking, foreign exchange, and anti-money laundering regulations change frequently. Confirm current requirements with the receiving bank and a qualified professional before relying on this information.
What to expect
- Processing times of two to five weeks are not unusual for the first payment, particularly for transfers above $10,000.
- Holds typically occur at the receiving Nigerian bank, not the sending bank. Once funds leave Mercury, downstream visibility is limited.
- The receiving bank may request additional compliance documentation mid-transfer before releasing funds.
- Bank-to-bank communication with Nigerian banks is often slow. Having the local recipient call the receiving bank's customer care line is usually faster than email.
What the recipient should prepare in advance
Ask the local recipient to gather these before the transfer is initiated:
- Invoice addressed to the sending organization, matching the payment amount and purpose.
- MOU or partnership agreement documenting the relationship between sender and recipient.
- Proof of engagement such as project documentation, scope of work, or prior correspondence.
- SCUML certificate. Special Control Unit Against Money Laundering registration, issued by the EFCC. Required for Nigerian nonprofits and many other Designated Non-Financial Businesses to maintain bank accounts and clear international transfers. Registration is free.
- Vendor legitimacy documents such as CAC registration, tax ID, and board resolution, where applicable.
Have the recipient notify their bank in advance that funds are inbound and share the invoice. Some banks will pre-position the file, which speeds clearance.
What to do on the sending side
- Match names exactly. Use the recipient organization's legal name exactly as it appears on their bank account and SCUML/CAC documents. Any discrepancy, even slight differences, can trigger a hold.
- Confirm USD acceptance. Nigerian rules on USD versus NGN settlement are evolving. Ask the recipient to confirm with their bank before initiating.
- Document purpose clearly in the wire memo and on the supporting invoice.
- Build in extra time. Avoid scheduling time-sensitive disbursements (payroll, supply purchases) on a tight Nigerian payment timeline.
If a payment gets stuck
- Ask Bookkeeping for the transaction receipts; when using Mercury Bank, we can give the Mercury receipt and the SWIFT receipt.
- Have the local recipient call (not email) the receiving bank's customer care line and ask what additional documentation is needed.
- Common late-stage requests include MOUs, proof of engagement, and SCUML clearance. Have these ready to send as soon as possible
Nigerian banking and FX rules change frequently. The Central Bank of Nigeria's March 2026 circular on diaspora remittances, effective May 1, 2026, requires International Money Transfer Operators to settle in naira through Authorized Dealer Banks. Confirm current rules with the recipient's bank before initiating large or recurring transfers.
Related external resources
SCUML official portal (EFCC)
Verify a SCUML certificate
Central Bank of Nigeria