{"id":283,"date":"2025-09-02T16:50:02","date_gmt":"2025-09-02T15:50:02","guid":{"rendered":"https:\/\/blog.yolat.com\/?p=283"},"modified":"2025-09-02T16:50:03","modified_gmt":"2025-09-02T15:50:03","slug":"sending-cad-to-naira-heres-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/yolat.com\/blog\/sending-cad-to-naira-heres-what-you-need-to-know\/","title":{"rendered":"Sending CAD to Naira? Here\u2019s What You Need to Know"},"content":{"rendered":"\n

In the last decade, many Nigerians have migrated to Canada. A study conducted by the African Polling Institute (API)<\/a> in 2020 reported that Nigerians emigrate to Canada for better career opportunities and to further their education, among other reasons. This migration has also increased the flow of remittances, making conversions like Canadian dollar to naira (CAD to naira) a common part of everyday financial transactions for Nigerian families.<\/p>\n\n\n\n


Immigration, Refugees and Citizenship Canada (IRCC)<\/a> granted 18,640 international student visas to Nigerians, and the Permanent Residents (PRs) granted grew to 20,380 from 17,465 in 2023.

When people move abroad, they sometimes leave family and responsibilities behind in Nigeria. The World Bank<\/a> reports that remittances to Nigeria remain a vital source of foreign exchange and a key contributor to the nation’s GDP.<\/p>\n\n\n\n

The Cost of Cross-Border Transactions<\/h2>\n\n\n\n

For all its personal and economic significance, the process of transferring funds between Canada and Nigeria can be costly and slow. According to the World Bank’s ‘Remittance Prices Worldwide’ database, Sub-Saharan Africa remains the most expensive region to send money to. Consequently, average costs were 7.9% in Q4 2023, more than double the UN’s Sustainable Development Goal target of 3%.<\/p>\n\n\n\n

This guide aims to equip readers with the knowledge to understand how the economic interactions of the CAD and Naira affect transfer capabilities. It will help you preserve the value of every dollar you send home.<\/p>\n\n\n\n

Mid Market Rate Versus Retail Rate.<\/h3>\n\n\n\n

When making a CAD to NGN <\/a>transaction, do you wonder why you never get the actual exchange rate you see listed online?<\/p>\n\n\n\n

This happens because the rate you see on a quick Google search, in fact, differs from the one your bank or a money transfer service offers. The rate you see is the mid-market rate, and the rate you are offered is the retail rate.<\/p>\n\n\n\n

What is the mid-market Rate?<\/h2>\n\n\n\n

The mid-market rate is the inter-bank rate that reflects a currency’s real-time value without any markup. Traditional banks and large financial institutions use this constantly fluctuating rate when trading huge sums of money among themselves. It is, quite simply, the midpoint between the buying (bid) and selling (ask) prices of two currencies on the global currency markets.<\/p>\n\n\n\n

The Retail Rate<\/h2>\n\n\n\n

The retail rate is the mid-market rate with an added markup or margin. This markup covers the operational cost of buying currency and is how banks and money transfer services make a profit. Businesses cannot offer the mid-market rate to individuals or businesses. This means a “no foreign transaction fee” policy doesn’t guarantee you get the mid-market rate.

There is no uniform markup across the board, as the specific margin varies from one service provider to another. Each service provider sets its own pricing strategy. This means a “no foreign transaction fee” policy does not guarantee you the mid-market rate.

There is no uniform markup across the board as the specific margin varies from one service provider to another because they each set their own pricing strategy.<\/p>\n\n\n\n

What Factors Affect CAD to Naira Exchange Rate?<\/h2>\n\n\n\n

Demand and Supply<\/h3>\n\n\n\n

The forces of demand and supply determine the exchange rate between any two currencies, just as they do for regular goods and services. For example, an increase in the demand for CAD affects the supply of NGN in the foreign exchange market, and vice versa.<\/p>\n\n\n\n

This surge in demand can happen because of business between the two countries, remittances, or international students exchanging currencies to pay for tuition. Consequently, these market forces cause the CAD to NGN exchange rate to fluctuate.<\/p>\n\n\n\n