10 Financial Things to Do Before Relocating Out Of Nigeria

Introduction.

Relocating to a new country is a big step, and while it’s exciting to think about new opportunities and experiences, it can also feel overwhelming. One of the most important things to get right before making this move is your finances.

Without proper planning, unexpected costs and financial mishaps could easily derail your plans or make the transition stressful.

I’ll walk you through 10 essential financial steps to take before leaving Nigeria. These tips are practical, actionable, and designed to help you avoid pitfalls. Let’s dive in.

Financial Things to Do Before Relocating Out Of Nigeria

1. Budget for the Relocation

Moving abroad isn’t cheap. It’s crucial to create a detailed budget that accounts for everything: visa fees, airfare, accommodation (temporary and long-term), transportation, and any moving services you might need. Research costs specific to your destination and add a buffer for unforeseen expenses.

Pro Tip: Online tools like Numbeo can give you an idea of living costs in different cities worldwide.

2. Open a Foreign Bank Account

Having a local bank account in your destination country makes life so much easier. It helps you receive payments, pay bills, and avoid excessive currency conversion fees.

Some banks in Nigeria, like GTBank and Zenith Bank, offer domiciliary accounts that you can link to foreign accounts for seamless transfers.

3. Understand Exchange Rates

The value of the naira fluctuates, so timing your currency exchange is critical. Use platforms like XE or apps like Wise to monitor rates and transfer money at the best possible time.

Consider converting a portion of your savings into a stable currency like USD or EUR before relocating.

4. Pay Off Debts or Create a Plan

Leaving Nigeria with unpaid debts can create unnecessary stress. If possible, settle loans, credit card bills, or other obligations before your move. If full repayment isn’t an option, discuss a payment plan with your lender to avoid complications.

5. Research Tax Obligations

Tax laws vary by country, so find out how your new home handles foreign income. Will you need to pay taxes back in Nigeria?

What about taxes in your destination country? Hiring a tax consultant can save you from potential legal issues or double taxation.

6. Get Health Insurance

Healthcare costs can be high in many countries, especially for newcomers without insurance. Research health insurance options and get coverage that starts the moment you land. Some countries require proof of insurance as part of their visa application process.

7. Sell or Secure Your Assets in Nigeria

Do you plan to sell your car, property, or other assets? If not, consider how to manage them remotely.

For example, if you own a home, decide whether to rent it out or leave it in trusted hands. Selling certain assets could provide extra funds for your move.

8. Save an Emergency Fund

An emergency fund is non-negotiable. It acts as a safety net for unexpected expenses like medical emergencies, job loss, or travel back home. Aim for at least 3-6 months’ worth of living expenses in a liquid, easily accessible account.

9. Sort Out Your Pension

If you’ve been contributing to a Nigerian pension fund, reach out to your Pension Fund Administrator (PFA) to discuss your options.

Some countries have agreements that allow you to transfer pensions, while in others, you might need to leave your contributions in Nigeria until retirement.

10. Learn the Financial System in Your Destination

Take time to understand how the financial system works in your new country. What’s the average cost of living?

How do taxes, savings, and investments work? Knowing these details helps you hit the ground running and make informed decisions.

FAQs

1. Can I transfer my Nigerian pension abroad?

Not directly, but you can leave your contributions with your PFA and access them when eligible. Check if your destination has agreements for pension transfers.

2. Should I keep my Nigerian bank account open?

Yes, it’s often wise to keep a Nigerian account for transactions back home. Just ensure it’s manageable and tied to your domiciliary account for easy foreign transactions.

3. What happens to my BVN?

Your BVN (Bank Verification Number) remains valid, and you’ll need it to maintain any active accounts in Nigeria.

Conclusion

Relocating from Nigeria is a life-changing decision that requires careful planning. Your finances are the foundation of a smooth transition, so taking these steps seriously can save you a lot of headaches.

What’s the first financial step you’ll take as you prepare for your move?