How to choose an escrow service in Nigeria

A proper escrow service keeps the buyer's money in an account that isn't its own spending money, usually with a bank. It tells the seller when the money has really arrived, not before. It gives the buyer an agreed number of days to check what they bought, then pays the seller once the buyer confirms, or once that time runs out.¹

It also tells you the fee before anyone pays, has a written way of handling disputes, and sends refunds back to the account the money came from. If a service can't explain any one of those clearly, keep looking.

In Nigeria, holding other people's money needs the right licence, and most payment licences don't allow it. Payment solution service providers, switches and super agents can move money but aren't allowed to keep it.^{2 3} Banks, payment service banks and mobile money operators are the kinds of licence that can.

The Central Bank publishes the names of every licensed payment service provider, sorted by type of licence.⁴ Ask the escrow service for its exact company name and licence, then find it on that list yourself. If it says the money sits with a partner bank, ask which bank, and check that the bank is real too. Look the company up on the CAC's public search while you're at it, and make sure the registered name matches the one on the website.

A real escrow company will answer these quickly and in writing. A fake one will get vague, or try to hurry you.

• Which licence do you hold, and under what company name?
• Which bank holds the money, and is it kept apart from your own?
• What's the fee, who pays it, and will we both see it before anyone pays?
• How long is the inspection period, and who decides it?
• What happens if we disagree, and who makes the call?
• If the deal falls through, how is the buyer refunded, and how long does it take?
• Can I read your terms before I sign up?

Be most careful when the other side picks the escrow service for you, especially one you've never heard of.⁵ Fake escrow sites tend to be only weeks old, take payment into a person's account, list no phone number or regulator, and copy the look of a known brand. Sellers get a smart “payment secured” email, and the money was never there.⁶

Never act on an email. Type the escrow site's address in yourself, sign in, and look for the money there. Our guide to how escrow works goes through a whole deal step by step.

Most escrow services charge a percentage of the price, and some add a flat fee or cap it. Compare the total you'll pay on your actual price, not the headline rate, and agree who pays it before the buyer sends anything. Splitting it equally is common and feels fair to both sides.

On Prow: Prow never holds deal money. A licensed escrow partner holds it, the fee is split equally between buyer and seller, and both see it before the buyer pays. Prow only tells the partner to release the money once the buyer confirms they have everything. Escrow is being set up now; until it's switched on, no money moves through Prow.

• You chose the escrow service, or you know it well.
• You found its licence on the CBN's list yourself.
• You know which bank holds the money.
• The fee, the inspection period and the dispute process are in writing.
• Refunds go back to the account the money came from.
• You never act on an email. You check the escrow account yourself.