Money Order in Nigeria: How to Send and Receive Money Safely Without a Bank Account

Last updated: May 2026 · 12 min read

I remember the first time someone asked me to get a money order.

I was confused. Is it like a bank draft? Is it like cash? Do I need an account? Where do I buy one?

The person explaining assumed I already knew. I did not. I nodded along and figured it out later through trial and error.

That experience taught me that money orders are simple once you understand them. They are perfect for people who do not have bank accounts or prefer not to use digital transfers.

This guide will walk you through everything you need to know about money orders in Nigeria. How to buy them. How to cash them. When to use them. And when to avoid them.

Before we dive in, make sure your personal finances are in order. How to Save Money Fast on a Low Income should be your first read.

You can also explore related topics like how to get out of debt fast and frugal living tips to make the most of every naira you send or receive.

– How Money Orders Work in Nigeria

The process is simple. Let me break it down.

How to buy a money order

Go to any post office or approved financial institution. Banks like First Bank and UBA sell money orders. Some supermarkets and retail stores also sell them.

Tell the clerk how much you want. Pay that amount plus a small service fee. The clerk will print or fill out the money order. You fill in the recipient's name and your name. Keep your receipt.

What you need to buy a money order

You need cash to pay for the money order plus the fee. A valid ID is sometimes required. You need the recipient's full name.

How much does a money order cost?

The fee is usually low. For a ₦10,000 money order, the fee might be ₦200 to ₦500. For larger amounts, the fee increases slightly. According to NerdWallet, money order fees typically range from 1% to 3% of the amount.

How to cash a money order

Take the money order to a bank, post office, or cashing agent. Endorse the back (sign it). Show your ID. Receive your cash.

That is it.

I once sent a money order to my cousin in a small town where there were no banks. He cashed it at the local post office in under ten minutes. No bank account needed.

If you are building a side hustle in Nigeria, you may want to receive payments through money orders. It is a reliable option for clients who prefer non-digital payment methods.

– Where to Buy Money Orders in Nigeria

Here are your options.

Post offices

The Nigerian Postal Service (NIPOST) sells money orders at locations nationwide. This is often the cheapest option. Fees are low. Agents are available even in small towns.

Banks

First Bank, UBA, GTBank, and others sell money orders. Bank fees may be slightly higher than post offices. But banks have longer hours and more locations in cities.

Retail stores

Some supermarkets and shops sell money orders as a service. Fees vary. Always ask before purchasing.

Western Union and MoneyGram

These companies also offer money order-like services. But their fees are usually higher than post offices or banks.

I have used both post offices and banks. For smaller amounts (under ₦50,000), the post office is fine. For larger amounts, I prefer banks because they have better tracking and customer service.

If you are receiving money from abroad, also read our MoneyGram guide to understand your options.

– Money Order Fees (Real Numbers)

Let me give you realistic estimates.

For amounts under ₦10,000

Expect to pay ₦200 to ₦300 in fees.

For amounts between ₦10,000 and ₦50,000

Expect to pay ₦300 to ₦700 in fees.

For amounts between ₦50,000 and ₦100,000

Expect to pay ₦700 to ₦1,500 in fees.

For amounts over ₦100,000

Consider a bank draft instead. Fees above ₦100,000 can be high.

If you are sending money regularly, the fees can add up. Use the how to save $1,000 fast method to offset these costs.

– Disadvantages of Money Orders

Be aware of these limitations.

Fees – Money orders are not free. For large amounts, fees can be significant.

Maximum limits – Most money orders have a maximum amount. You may need multiple money orders for large payments.

Physical paper – You must mail or deliver the money order in person. Digital transfers are faster.

Risk of loss – Even though you can track money orders, losing one is still a hassle.

Cashing can be difficult – Some banks refuse to cash money orders for non-customers. Post offices have limits.

For large amounts (over ₦200,000), a bank transfer or bank draft is usually better.

For more practical advice, explore our Side Hustle Stack and Low Income Budget Example articles.

– Alternatives to Money Orders in Nigeria

Here are other options.

Bank drafts

Better for large amounts. Fees are similar to money orders. You usually need a bank account to purchase one.

Bank transfers

Faster and often free. You need a bank account and the recipient needs a bank account.

Mobile transfers (O pay, Palmpay, Paga)

Very fast. Low fees. You need a smartphone and a funded account.

Cash

Simple but risky. No fees. But no protection if lost or stolen.

Western Union and MoneyGram

Good for sending money from abroad. Higher fees than money orders for domestic use.

According to Techpoint Africa, digital payment methods are growing fast in Nigeria, but money orders remain relevant for rural areas and people without bank accounts.

If you are building a side hustle in Nigeria, understanding all payment methods helps you serve more clients.

– When Should You Use a Money Order?

Here is my practical advice.

Use a money order when

You do not have a bank account. The recipient does not have a bank account. You are paying a landlord or business that prefers cash but you want a receipt. You are sending money to someone in a rural area with no banks. You want a traceable payment without a digital trail.

Do not use a money order when

You need to send money urgently (digital transfers are faster). The amount is over ₦100,000 (fees become high). You have a bank account (transfers are cheaper). You are sending money internationally (use MoneyGram or Western Union instead).

I use money orders for rent and for sending money to family in small towns. For everything else, I use bank transfers or mobile apps.

When your money arrives, use the how to save $1,000 fast method to grow what you receive.

For more personal finance education, visit our Financial Freedom Meaning article and Frugal Living Tips 2026.

Sources and Further Reading