Chapter 5: Contracts, deposits and getting paid from abroad

Not legal, tax or financial advice. The payment information in this chapter comes from sources checked in October 2026 (listed in the appendix). Most of it comes from third-party comparison articles and provider blogs, some of which have a commercial interest. Fees, limits and availability change often. Everything marked [VERIFY] must be confirmed on the provider's own website, or with your bank, lawyer or accountant, before you rely on it.

You've found a client, agreed a scope and priced the work. Now comes the part that worries many Nigerian designers most: protecting yourself and getting the money into your hands. This chapter covers three things:

1. The contract that protects both you and the client
2. The deposit and milestone structure that keeps you from working far ahead of payment
3. The practical options for receiving foreign currency in Nigeria, and for paying for your tools

Part 1: Why contracts matter more across borders

When you and your client are in different countries, chasing an unpaid invoice through the courts is usually slow, expensive and uncertain. That means prevention is your main protection. A clear contract:

• Sets shared expectations about scope, timelines, revisions and payment
• Gives you a written reference point if there's a disagreement
• Signals professionalism, which helps with the trust gap (Chapter 2)
• Protects the client too: many serious clients prefer a designer who uses a contract

Template 2 is a starting point built for international brand work. Have a qualified lawyer review and adapt it before use.

Key clauses explained

Currency (clauses 2.1–2.2). State the currency of the fee and the invoices, and who bears exchange-rate differences. Quoting in the client's currency (Chapter 4) usually means the client pays a fixed amount in their own money.

Transfer and payment fees (2.3). International payments can lose money along the way: sending fees, intermediary bank charges and receiving fees. Decide who pays. Common options:

• The client pays all sending and intermediary fees so that you receive the full invoiced amount.
• Each party pays its own side's fees.
• You absorb receiving fees up to a stated amount and build that into your price.

Whichever you choose, write it down. "Fees" disputes are common and easy to prevent.

Payment method (2.4). Name the method, but keep some flexibility ("or another method agreed in writing"), because payment options change.

Deposit (3). Work starts only when the deposit arrives. The deposit is typically non-refundable because it secures your time. Check how this works under the governing law you choose. [VERIFY with your lawyer.]

Milestones (4). Staged payments keep you from being too far ahead of what you've been paid. Final files are released only after the final payment.

Late payment (4.1). What happens if an invoice isn't paid on time: reminders, a pause in work and, where lawful, a late fee or interest.

Revisions (5). A set number of concepts and revision rounds, a definition of "a round", and the price of extra rounds. This clause protects you from endless changes.

Changes to scope (6). New requests get a written quote before work starts.

Intellectual property (8). Ownership of the final work passes to the client only after full payment. This is your strongest protection. Until they've paid, they don't own the work and shouldn't use it. The clause also covers unused concepts, source files, third-party licences (fonts, stock) and your right to show the work in your portfolio.

Cancellation and kill fee (11). If the client cancels midway, you keep the deposit and are paid for work completed.

Force majeure (13). Covers events outside either party's control. Mentioning power and internet outages "beyond backup measures" is honest, but it also means you must actually have reasonable backups (Chapter 6).

Governing law and disputes (14). Which country's law applies and how disputes are handled. This is a legal decision with real consequences. [VERIFY with a lawyer.] Some clients will insist on their own country's law. A lawyer can tell you what that means for you.

Step-by-step: preparing your contract

1. Read Template 2 fully.
2. Choose your options in clauses 2.3, 3, 4, 5, 8, 11 and 14.
3. Have a lawyer review it. Ask specifically about deposits, IP transfer, governing law and enforceability against foreign clients.
4. Save a master version. For each client, copy it and fill in Schedule A (scope) from your proposal.
5. Send it as a PDF for e-signature, or as a document both parties sign. [VERIFY that the e-signature tool you use is acceptable for your needs.]
6. Start work only after both signature and deposit.

HYPOTHETICAL worked example: when the contract helps

Invented scenario for illustration.

Ada is working on a brand identity for a client in Canada. After two revision rounds (the contract allowed two), the client asks for "a few more tweaks", which turns into a full new direction. Ada replies politely:

"Happy to explore a new direction. Our agreement includes two revision rounds, which we've now completed. A new direction would be Additional Work under clause 6. I can quote it as [scope] for [amount]. Shall I send that over?"

Because the contract was clear, the conversation stays professional. The client can choose to approve the extra cost or go ahead with the current design. Without the clause, Ada would be negotiating from a weak position.

Part 2: Deposits and milestones

The principle: you should never be far ahead of payment.

EXAMPLE structures

Illustrative only. Choose what suits your project size and risk.

• Small project: 50% deposit, 50% before final files.
• Medium project: 50% deposit, 25% at concept approval, 25% before final files.
• Large project: 40% deposit, then three milestone payments of 20%.
• Retainer: paid monthly in advance.
• Agency work: often according to the agency's own terms. Negotiate a deposit for new relationships where possible.

Step-by-step: running payments on a project

1. Contract signed → send the deposit invoice (Template 7).
2. Deposit arrives → send a receipt (Template 8) → start work.
3. Each milestone reached → send that milestone's invoice → continue when paid (or according to your agreed terms).
4. Final work approved → send the final invoice → release final files only after payment.
5. Final payment received → receipt + IP transfer confirmation → handover (Template 9).

Polite payment reminders

• Due date: "Hi [Name], a quick reminder that invoice [#] for [amount] is due today. Details are on the invoice. Thanks!"
• 7 days late: "Hi [Name], following up on invoice [#], now 7 days overdue. Could you let me know when to expect payment?"
• 14+ days late: "Hi [Name], invoice [#] is now [X] days overdue. Under our agreement, I'll pause work on [project] until it's settled. I'm happy to talk if anything has come up."

Part 3: Receiving foreign payments in Nigeria (as reported, October 2026)

This is the topic with the most outdated advice online. Below is what the sources listed in the appendix reported in October 2026. Fees change. Confirm everything on the provider's own site before relying on it. [VERIFY]

Option 1: Virtual foreign-currency accounts (e.g. Grey, Cleva, Raenest)

These fintech services give you foreign account details (for example, US account details) that a client can pay by bank transfer. You can then hold the money or convert it to naira and withdraw it to your Nigerian bank.

Reported details [VERIFY]:

• Grey: USD, GBP and EUR receiving accounts. Reported fees: 0.8% deposit fee (minimum $2, maximum $10), 1% USD-to-naira conversion fee (capped at $6), ₦35 per naira withdrawal, and 3.8% to fund its virtual card. The GBP and EUR accounts may suit UK and European clients.
• Cleva: US account details. Cleva reports $0 on eligible Upwork deposits in 2026, plus zero conversion and naira-withdrawal fees. Note: these are Cleva's own claims.
• Raenest: reported to offer four free deposits a month, then $1 per deposit, with zero conversion and naira-withdrawal fees.
• Geegpay / Raenest: one source (Grey's blog) describes Geegpay as "now Raenest". Another (brands.ng) still lists Geegpay separately, with a 0.8% deposit fee capped at $15. The sources conflict. Confirm the current brand and pricing.

Sources also report differences in which payment "rails" each provider supports (for example ACH, FedNow and wire transfers). [VERIFY which rails your provider supports and make sure your client can use one of them.]

Option 2: Payoneer

Payoneer is the long-established option, deeply integrated with marketplaces such as Upwork and Fiverr. One source reported that Upwork renewed its Payoneer partnership in May 2026.

Reported costs vary by source [VERIFY]:

• Grey's blog reports about 1% for receiving payments from clients, an exchange-rate markup of about 2%, and $2–3 per withdrawal to Nigerian banks.
• Paid Across estimated around 3% all-in.
• The sources disagree on the annual-fee threshold: one says $29.95 a year if you receive less than $2,000 over 12 months; another says the threshold is $6,000 a year. Check Payoneer's current terms.

Option 3: PayPal via Paga

For years, Nigerians could use PayPal to send money but not to receive it in a practical way. According to Paga's January 2026 announcement, Nigerians can now link PayPal to Paga to receive payments and withdraw to naira. PayPal's Nigeria help page says new Nigerian customers must link their partner bank to start receiving money.

Cost: Paid Across estimated the combined cost at roughly 6–7% or more, making it the most expensive common option they compared. [VERIFY]

Note: older articles, including Grey's blog, still say Nigerian personal PayPal accounts are send-only. That looks out of date after the Paga change, but check the current position yourself.

When to use it: mainly when a client insists on PayPal. If you use it, build the higher cost into your price or agree in the contract that the client covers fees.

Option 4: Wise, and its limits for Nigerians

Wise is often recommended by people outside Nigeria, so you need to know its limits. Grey's blog reports that Wise suspended USD transfers to Nigeria in November 2022, re-enabled naira payouts in September 2024 for GBP-to-naira only, and that the Wise card is not available to Nigerian residents. Don't plan on using Wise to receive USD. [VERIFY]

One source (brands.ng) notes Wise can still offer good exchange rates on some one-off transfers. If a UK client wants to send GBP that converts to naira, check whether that route currently applies.

Comparison summary (reported Oct 2026, all [VERIFY])

Option	Best suited to (per sources)	Main caution
Virtual USD/GBP/EUR accounts (Grey, Cleva, Raenest)	Direct clients paying by bank transfer	Fees and supported rails differ; some figures are providers' own claims
Payoneer	Marketplace payouts	Higher reported total cost; conflicting annual-fee thresholds
PayPal via Paga	Clients who insist on PayPal	Highest reported cost (~6–7%+)
Wise	Limited (GBP→NGN only, per sources)	Not a USD receiving option for Nigerians

A sensible default setup

[Assumption: the author's view, not a sourced fact]

• One virtual foreign-currency account as your main option for direct clients
• Payoneer if you also work through marketplaces
• PayPal via Paga only as a fallback when a client insists

Choosing a route for each client

Use these questions when a new client asks "How do I pay you?":

1. Where is the client, and what currency will they pay in? USD, GBP and EUR may need different routes.
2. How will they send it? A business bank transfer, a marketplace payout or PayPal?
3. Which of your routes supports that? Check the provider's current documentation [VERIFY].
4. Who pays the fees? Confirm this matches your contract (clause 2.3).
5. Has this route been tested? If not, test it with a small amount first, or use a route you've already tested.

Put the answer on your invoice (Template 7) as clear, step-by-step instructions. Clients rarely mind paying a professional in Nigeria. What they do mind is confusing instructions or having to ask twice.

Step-by-step: setting up and testing your payment route

1. Choose your main provider after checking current fees on its official site.
2. Complete identity verification well before you need it; it can take time.
3. Test with a small payment from a friend or family member abroad before using it with a client.
4. Record how long the payment took and exactly what arrived after fees.
5. Write clear payment instructions for your invoice template (Template 7).
6. Choose a backup provider in case your main one has problems.
7. Re-check fees every few months.

HYPOTHETICAL worked example: what actually arrives

Invented numbers to illustrate why tracking matters. Not real fees for any provider.

A client pays an invoice of EXAMPLE $1,000. Along the way:

• The client's bank charges a sending fee (paid by the client, as agreed in the contract)
• Your provider charges an EXAMPLE receiving fee of $8
• When you convert, you pay an EXAMPLE conversion fee and the exchange rate on the day

You record on your receipt (Template 8): invoiced $1,000, received $992, plus the conversion details. Over several projects, this record shows you your real effective cost and whether your fee clause and pricing are doing their job.

Part 4: Paying for your tools (naira card limits)

International software subscriptions (design tools, fonts, cloud storage) need a way to pay in foreign currency. Between 2022 and 2025 many Nigerian banks cut or suspended international transactions on naira cards. As reported by Nairametrics in September 2026, banks have since raised limits [VERIFY with your bank]:

Bank	Reported international limit on naira cards (Sept 2026)
GTBank	$40,000 per quarter
FirstBank	$10,000 per quarter (POS and online)
Zenith Bank	$50,000 per year
UBA	$20,000 POS / $10,000 online
Access Bank	$50,000 per year; $300 per day at ATMs (per its FAQ)

These limits have changed many times and may change again. Some designers use a fintech virtual dollar card instead. Check its funding fees (Grey reportedly charges 3.8% to fund its card) [VERIFY].

Part 5: Records and tax

Keep a simple record of:

• Every invoice (number, client, amount, currency, date)
• Every payment received (date, amount received, fees)
• Every conversion to naira (date, rate, amount)
• Business expenses (Chapter 4)

Nigeria's tax rules for individuals and freelancers have been changing. [VERIFY: speak to a qualified tax professional about your obligations on foreign income.] Good records make that conversation easier and cheaper.

Common contract and payment mistakes

1. Starting before the deposit arrives "because the client seems nice". Most payment disputes begin here.
2. Vague scope. "Branding" means different things to different people. Use Schedule A.
3. No fee clause. Without one, international transfer fees often come out of your fee.
4. Sending files before final payment. Once files are sent, your leverage is gone, whatever the contract says.
5. Using an untested payment route for a first client payment.
6. Informal payment requests, like asking a client to send money to a friend's account. This damages trust and can create legal and tax problems. Use accounts in your own name or your business's name.
7. No records. Without them, tax, pricing reviews and disputes all become harder.

Checklist: contracts and payments

• Contract template adapted, with options chosen
• Lawyer review booked or completed
• Deposit and milestone structure decided
• Payment reminder messages ready
• Main receiving provider chosen after checking current official fees [VERIFY]
• Identity verification completed
• Small test payment done
• Backup provider identified
• Bank card limits checked [VERIFY]
• Records spreadsheet set up
• Tax conversation scheduled [VERIFY]

End-of-chapter exercises

Exercise 5.1: Contract options. Go through Template 2 and write your choice for each option clause. Note your questions for the lawyer.

Exercise 5.2: Provider check. For two or three providers, visit their official sites and record their current fees for your likely use. Compare them with the figures in this chapter and note any differences, with the date.

Exercise 5.3: Test payment. Arrange a small test payment from abroad. Record the time taken and the amount received.

Exercise 5.4: Payment instructions. Write clear payment instructions for your invoice, including the fee clause wording.

Exercise 5.5: Reminder scripts. Adapt the three payment reminders to your own voice.

Exercise 5.6: Records. Set up your records spreadsheet and enter your last three payments (any currency).