Exporting Services to Nigeria From India: EDF, Invoicing and Payment Guide

To export services to Nigeria from India, invoice in a currency your bank and client can both handle — usually US dollars — get paid into your Indian AD bank, and list each invoice on your monthly EDF with "Nigeria" in the Part 2B country column. The point that needs the most planning is timing: build payment terms and follow-up around the 9-month realisation window from each invoice date, because cross-border payments can take longer than you expect.

Key takeaways

• Nigerian invoices go on the same monthly EDF as your other exports — one row each, due 30 days from the end of the invoice month.
• Most Indian exporters invoice Nigerian clients in USD or another major currency; check with your bank before agreeing to anything else.
• Your client may deduct tax on payments to foreign service providers. Check with your CA whether a tax treaty between India and Nigeria applies to your case.
• If the payment comes from an entity other than your client, fill the EDF's third-party fields and keep the supporting documents.

Choosing the invoice currency

The currency decision shapes everything after it — how your client pays, what your bank can process and what you realise in rupees.

Whatever you agree, put it in the contract, invoice in that currency, and record the same currency and amount in your EDF row.

What the invoice should show

• Your Indian legal name, address, GSTIN and PAN.
• The client's legal name and Nigerian address, plus any tax identification number they want shown.
• Invoice number and date, currency, amount and payment terms.
• A specific service description and contract or PO reference.
• If you export under LUT: "Supply meant for export under LUT without payment of IGST".
• Your bank details, including SWIFT code, exactly as your bank provides them.

Ask the client at onboarding whether its finance team needs anything else on invoices to process payment. Getting this right first time removes a common source of delay.

Payment routes and timing

Most Nigerian clients pay Indian suppliers by international bank transfer (SWIFT) in USD. The payment may pass through correspondent or intermediary banks, which can deduct charges. Your Indian bank receives it, assigns a purpose code and issues a FIRA, FIRC or advice. That bank is normally your AD bank for the EDF.

Timing is where Nigerian receivables can differ from, say, a UK client on 30-day terms. Your client may need time to arrange foreign currency, complete internal approvals, or deal with its bank's documentation. None of this changes your obligation: the full value of each services invoice must be realised within 9 months from the invoice date (12 months for rupee invoices). Your AD bank can extend that period on a reasoned request.

Practical steps:

• Agree realistic terms — and consider an advance for new clients.
• Ask the client to quote your invoice number in the payment details.
• Track each invoice's 9-month date in your EDF register.
• Chase in writing from about the 90-day mark if unpaid, and keep the replies.
• Ask for an extension before the deadline if a genuine delay is clear. Our realisation extension request letter sets out what to include.

Withholding tax and the treaty question

Nigerian clients may be required to deduct withholding tax on certain payments to foreign service providers. Whether it applies to your service, and at what rate, depends on Nigerian rules. We aren't quoting rates because they depend on the service and can change.

Whether a DTAA between India and Nigeria is in force and what it covers is a question for your CA — don't assume treaty relief is available until they've checked.

For your EDF, withholding means you receive less than the invoice value. Show the invoice amount and the NRV you expect to realise, note the withholding in remarks, and keep the client's withholding certificate. Ask your CA whether you can claim credit for the tax in India.

Third-party payers

Some Nigerian businesses pay foreign suppliers through a related company — a group entity or a parent outside Nigeria. If the payer differs from the client you invoiced, fill fields 1.15 (third party) and 1.16 (relationship) on the EDF, and keep documents that explain the arrangement, such as a payment instruction from your client. Our guide to third-party payments in the EDF covers what banks typically want to see.

Worked example: a Chennai software firm with two Lagos clients

Coromandel Code Works Pvt Ltd builds and supports software for clients in West Africa. In December 2026 it raises:

Both go on Coromandel's December EDF, alongside its UK and Kenyan invoices, due 30 January 2027. For invoice 310, fields 1.15 and 1.16 name the Mauritius parent and its relationship to the client; Coromandel keeps the client's written payment instruction on file. Invoice 310 exceeds ₹10 lakh, so when it's paid Coromandel sends its bank the invoice, FIRA, payment instruction and matching instructions.

The logistics client pays invoice 311 after 140 days, with withholding deducted. Coromandel notes the shortfall, keeps the withholding certificate, and includes the invoice in its quarterly realisation declaration. Both invoices' 9-month dates fall in September 2027, and both are realised well before then.

For a comparison with another African market, see our guide to exporting services to Kenya.

GST in brief

An export of services to a Nigerian client is a zero-rated supply when the Section 2(6) IGST Act conditions are met — including payment in convertible foreign exchange, or in rupees where RBI permits. Most exporters invoice under LUT without IGST. The EDF doesn't change your GST or income-tax obligations.

This is general information, not legal or tax advice. Nigerian tax rules and any treaty position should be confirmed with qualified advisers.

Frequently asked questions

Should I invoice Nigerian clients in naira or dollars?

Most Indian exporters invoice in USD, which Indian banks handle routinely. If a client asks to pay in naira, check with your bank first whether it can receive and process it. Whatever you agree, use the same currency on the invoice and the EDF.

Is there a DTAA between India and Nigeria?

Ask your CA to confirm whether a treaty is in force and what it covers before relying on any treaty benefit. Until then, plan on the basis that your client may withhold tax under Nigerian rules.

What if my Nigerian client takes more than 9 months to pay?

Write to your AD bank before the 9 months run out, explaining the delay and attaching your follow-up correspondence. The bank can extend the realisation period on a reasoned request.

Can a Nigerian client's overseas parent pay my invoice?

Yes, but declare it properly. Fill the third-party fields (1.15 and 1.16) on the EDF and keep documents showing why the parent is paying, such as a payment instruction from your client.

Do Nigerian invoices need a separate EDF?

No. One EDF per month covers all your service exports to one or more recipients. Nigerian invoices are rows in Part 2B with Nigeria in the country column.

Bottom line

Nigerian clients fit into your monthly EDF like any other — invoice in a workable currency, list each invoice, and plan carefully around payment timing, withholding and third-party payers. Prepare the form in the free EDF form generator.