A recent report by the Central Bank of Nigeria shows that the value of diaspora remittances to Nigeria for 2016 was about $35bn, a marked increase over the figure of $21bn recorded for 2015.
Over the past several years diaspora remittances have constituted the second largest source of foreign exchange for Nigeria, after crude oil sales. And for a country whose economy is in recession, struggling with a severe scarcity of foreign exchange to finance imports, it is understandable that there should be an increased interest in the precious forex generated by Nigerians living overseas.
The federal government, a few months ago, licensed additional 32 International Money Transfer Organizations (IMTOs), bringing the total number currently in operations to 35. The Minister of Finance also recently announced plans to roll out a $300m Diaspora Bond in March this year.
Diaspora remittance is a two-way affair that involves a sender of the funds, and the receiver. Usually the sender resides and works overseas, and he or she sends money back home to friends and family members. Such funds may be used for several purposes: from meeting normal, everyday expenses, to paying for education, healthcare services, as capital for starting a new business or for executing major projects.
Osiah Gare, a Nigerian who resides in South Africa, has been remitting money back home to Nigeria every month for over a decade. He described it as one of the ways by which he keeps connected with the members of his family that he left behind.
He said: “For the past twelve years I have been using Western Union to send money back home to pay for my aged mother’s medications, for my family’s upkeep and also for my personal projects. I know that the money helps to keep them out of trouble and saves them from financial embarrassment.
“Western Union has always been considered my safest and fastest means of remitting money. At least coming from the time when we had to send relatives with cash and they would not deliver the money but instead give us plenty of stories, Western Union has been a saving grace”, Gare added.
Gare is one of the hundreds of thousands of diaspora Nigerians who patronize money transfer services offered by companies like Western Union. By dealing with such a reputable international company, with strong global footprints and a track record of quality service delivery, he is at least rest assured that any money he sends back home will be delivered promptly and safely. And he has a twelve-year experience to back that up.
The World Bank migration and remittance brief states that Nigeria is the largest remittance market in Africa and 5th in the world. More than 195 countries and territories sent money into Nigeria, and 160 received money from Nigeria in 2015, reflecting the extraordinary global connections brought about by the rise in migration of Nigerians to many parts of the world.
As the undisputed market leader in the IMTO space in Nigeria, Western Union plays a key role in delivering value, not just to its individual customers, but also to the larger Nigerian economy, first by helping to strengthen the government’s policy of financial inclusion, and then by gradually easing out the options of inefficient and informal processes of sending money through travelers, purchases, etc. More Nigerians abroad are requesting their family and friends at home to open bank accounts, mobile money wallets and get their remittances directly instead of through third parties that might fail to deliver.
Aida Diarra, Western Union’s Vice-President for Africa said: “The Nigerian spirit of hard work and resilience can be found around the world across all economic spheres. Western Union recognizes that, at the start and end of every transaction are two people, and they rely on each other, just as much they rely on us to move their money reliably.
It is this dual belonging that remains at the heart of our innovation to make it easy for Nigerians to send or receive money.
“We have come a long way in Nigeria with the expansion of the network. Today, we have well over 5,200 locations in this country. When you compare that with the size of the country and its 170 million inhabitants, you see that the opportunity is much bigger.
The way we are engaging customers in Nigeria is by diversifying the portfolio of services and channels. That is how, today, in Nigeria alone, you can receive your transaction in an electronic wallet, directly in an account, or you can even log on to the Western Union website to put your money into an account. That is what helps us to continue to service our customers in a very huge and diverse market like Nigeria”, Diarra added.
Western Union has operated in Nigeria for over twenty years, and considers the country as one of the most connected in the world when it comes to sending and receiving money. From a single location with the First Bank of Nigeria in the heart of Lagos in 1996, Western Union has expanded its walk-in location count to over 5,200, with a presence in every one of Nigeria’s 36 states and the Federal Capital Territory (Abuja).
