Naira to Pounds - How to Buy Pounds Sterling (GBP) lower than Black market in Nigeria

Outline

In this article, we will discuss:

1. Introduction of the concept
2. A little about the Pounds Sterling currency
3. Ways to buy pounds from Nigeria
4. Method 1: Bureau de change (BDC)
5. Method 2: Banks
6. Method 3: Peer-to-peer communities/friends and family
7. Method 4: An Introduction to my recommended Unique method and how to get access to it

Feel free to jump into any part of the article.

Introduction

To buy pounds sterling in Nigeria will require you to exchange your naira at very high rates. This can be a big challenge considering that there are lots of expenses to be made when planning a trip out of Nigeria, especially for relocation(Japa).

About the Pounds Sterling

In case you didn't know, the pounds sterling is the official currency of the United Kingdom – England, Scotland, and Wales. The official symbol is £ while the sign is GBP.

If you need to buy pounds for your trip to the United Kingdom, I found a great way you can do this at very good exchange rates.

By using this method, you will get pounds at an exchange rate higher than that of the Central Bank of Nigeria (CBN) or Bank rate. However, the rate will be lower than the black market exchange rates you will get when you approach the BDC operators on the street to help you.

You can get as much as N40 - N70 less than the Blackmarket exchange rate using this method.

For Illustration,

Using the Black market 1000 GBP at N850 = N850,000

Using my method 1000 GBP at N808 = N808,000

You can see quick exchange for popular currency pairs like 100 dollars in pounds or you can use our easy exchnage rate calculator to convert over 140 currencies.

Before we go into my method, let me describe all the other ways to buy pounds in Nigeria

Ways to buy pounds in Nigeria

Method 1: Bureau De Change (BDC)

Go to the BDC operators at street corners a.k.a Aboki, a.k.a Black market. These guys will give you the black market rates on the street and give you pounds in cash. 

You can approach them on the street to ask about the current rate but you need to be careful.

Please note that the CBN no longer sells foreign currencies to BDC in Nigeria since July 2021 hence you need to be careful not to receive fake currencies.

 Here are a few tips to bear in mind when dealing with BDC operators.

1. Know the currency you are buying. If you are buying the pounds sterling, you may want to find out what it looks like and what versions of the currency are still valid. A google search can give you this information. You also need to search for news on currencies that are being changed.
2.  Try to use only trusted or recommended people. This is so important because there will be times when you will encounter issues. When I first exchanged dollars with naira years ago to pay into my USD account, I had no idea what the dollars looked like or if I was getting fake currencies. I relied on the fact that someone at my bank recommended that person to me. This saved me a lot of headaches when I had to return some of the dollar notes for some reason.
3. Find a safe place for your exchange. You see, in July 2022, the CBN threatened to arrest people caught buying dollars with Naira. It might be helpful to do your exchange in a private place.

Where to find BDC Operators

In every state in Nigeria, there are several locations where you can find these black market operators.

If you are in Lagos, they can be found near the international airport, Ikeja, Surulere, Lagos Island, etc. 

An easy trick is to go into any bank near you and ask where you can exchange your currencies. The bankers usually work with them and they will direct you to where you can find them.

Method 2: Banks

Another way to buy pounds is to approach your bank and request it.

You can tell them you want to send it to a friend and if they have, they will probably sell it to you.

Currently, banks are having a hard time obtaining pounds and other foreign currencies from the Central bank. If you are not buying the pounds for international school fees, export, or travel allowance, you will most likely not get any pounds.

A few months ago, I had to go through the form M process and I can tell you one thing, it is so slow due to the demand from Nigerians trying to study abroad but the exchange rate is worth the wait.

About the CBN form M

This is an initiative by the CBN to provide cheap foreign exchange through form M which makes it possible to buy the pounds sterling and other hard currencies at exchange rates that are very close to the CBN official rates. 

With the form M, the Bank applies to the CBN and obtains some pounds Sterling on your behalf and then adds a little markup to the rate. For instance, if the CBN gives the Bank at the rate of N500 to 1 Pound, the Bank will add a little markup and give it to you for about N565 to 1 GBP. Read more here

How to Access the CBN form M

1. Visit the link at https://www.trade.gov.ng/ and complete the form online and also upload the required documents.
2. Visit your bank with the hard copies of the documents submitted for them to approve the transaction. The bank will give you their rate then you fund your account before they approve.
3. Sit back and wait for processing. You can track your progress here at the trade.gov link. You can see the full guidelines at the Nigerian Customs Service website here: https://customs.gov.ng/?page_id=3145

To matters worse, the CBN announced in February 2022 that by the end of 2022, it plans to stop providing foreign currencies to banks in this manner.

Business / Personal Travel Allowance ( BTA/PTA)

This is a sum of money you get for your expenses in foreign currencies when you are about to travel. If you need some pounds, the bank will give you at very low rates, close to the CBN rates.

Things to note about the BTA/PTA

1. There is a limit to how much cash you can carry when you travel. Check the country’s travel guides before you decide on how much BTA to request from your bank
2. The bank can provide it into your foreign currency account in addition to cash. This is the easiest option
3. You have to show an airplane return ticket to show that you are returning to Nigeria
4. You will have to return unspent BTA if for some reason you do not go on the trip

Method 3. Online Peer to peer communities/friends and family

You can get pounds in Nigeria from other not-so-obvious sources but they are not always available and can be very risky.

1. Social media. Lots of online exchangers are on Facebook groups and Instagram. Search on any of those platforms for the currency you want to exchange. From the result, you can reach them and carry out your exchange
2. Online communities. You can also find online communities on websites like Ngrates, Nairaland, Jiji.ng, etc where merchants are advertising their currency exchange business. Just make sure you are careful with such services
3. P2p apps like Kyshi. The app allows you to buy or sell pounds in a p2p manner. When you register and verify your account, you will be able to trade your naira for pounds. The app shows you available sellers and their rates for you to choose from. You can only have a wallet in the country you live in. For instance, if you live in Nigeria, the app will not let you create a wallet in pounds.
4. Friends and family returning from the UK. You can get some Pounds from people returning from the UK who want to spend in Nigeria. These people may not want the hassle of going to a BDC to change their money. You can find them through referrals from your contract, friends, and family.

Method 4: My recommended method of getting pounds in Nigeria

Before I go into this 4th method, let me inform you that with this method, you will not be getting the pounds in cash. It will go to your Pounds bank account. The good thing about it is that there is never a scarcity of any currency you want to buy.

If you are ready to access this 4th method click the instant access button below

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