Nigerian people especially the youths travel to faraway lands with the dream of living a normal life. They provide money for the family living in Nigeria by working in these foreign lands. This Nigerians who lived in other countries depend upon money transfer services to send money to their loved ones. Hence people wire money to Nigeria to transfer money for their loved ones and for funding their developments.
In short, both the government and people use the remittance revenue for social causes. Therefore, after foreign direct investment, remittance has become one of the largest sources of financial inflow in Nigeria.
Early Cross-border Money Transfer – The History
There was a time in human history where people exchanged goods instead of money. During the Mesopotamian and Harappan civilization, people developed the concept of trading. Hence, they conducted trade through the exchange of gold, silver, ivory, precious stones, spices, musk, camphor, sandalwood, wine, tea, salt, wool, silk, muslin under the barter trade. Later there were metal coins and currency exchange, followed by International Banking in the 15th century. After the discovery of the US dollar in the 17th century, followed by some advancement, they discovered the Wire Transfer method for electronic fund transfer.
When the International Banks eased the banking scenario and had gained enormous popularity. As a result, the SWIFT system (Society for Worldwide Interbank Financial Telecommunication) came into existence. It strengthens international payments. And now, with the ease of internet services, we have services that have made online money transfer possible. These ‘wire money to Nigeria’ services come at a fraction of the cost that most money transfer operators and banks were charging. Today, there are digital currencies like Bitcoins, Ethereum, and other cryptocurrencies. These are changing the perspective of cross-border money transfer.
Many youth’s, who search for a better lifestyle, often keep the USA as their first choice. Moreover, the fastest growing economies, China and India have the highest share in the global remittance market. So, Nigeria is on the right path…
USA – The Global Leader of Remitters
During the second World-war, the USA had to enter the war-zone. Therefore, many civilians entered to military services and labor demand of war industries generated a vast opportunity for the youth to earn. And so, post WW2, the USA was a better condition in the world, in terms of economy. By 1890, the USA gained the status of “World’s most productive economy”. As per Bretton Woods agreement in 1944, the dollar was declared as the global currency. And in the current scenario, all the trades were dealt with the gold exchange. This agreement made people prefer dollar as a form of investment rather than gold.
Later on, due to many industrial sets up, there was a void for job applicants. Hence youngsters planned to move to the USA thereby helping strengthen their economy. And with the salary earned, people from the poverty-hit states sent remittances to their homelands. Since the USA is the highest job producer in today’s time with a high standard of living, the USA is the global leader when it comes to the number of remittance sending immigrants. But, why is it that Nigerian’s are the driving force for escalating the remittance trend?
Wire Money Nigeria – The Trend
As the primary occupation in Nigeria is farming and agriculture, which was not in good condition, people belonging from working-age found opportunities in the US. The global economic growth is one factor responsible for higher inflow of remittance to Nigeria.
And since, Nigeria is rich in oil reserves, the soaring price in oil has helped Nigeria get more funds. Although there were a few setbacks in 2016, now Nigeria has adopted different measures to attract remittance inflows that will contribute to economic development. These factors are responsible for escalating the remittance to Nigeria, and the growth of people who send money to Nigeria online is increasing day by day.
Business Investment in Nigeria…
Investing in US-based businesses that have connections with Nigeria is a great source of profit. Nigeria is also the most populous country in Africa with approximately 200 million people (estimated to be 480 million by 2050). It is a nation of the youth – over 36% Nigerians are between the ages of 15-35 years. Nigeria enjoys a dynamic private sector, which has assured greater responsibilities under the new economic environment with free flow of investment into Nigeria.
The government has liberalized Exchange control regulations. They ensure a free flow of international finance and Foreign Direct Investment guarantying unrestricted movement of investment capital. Nigeria also boasts a well-developed banking and financial sector with easy access to working capital and other credit facilities. There is an abundance of skilled labor at a fraction of cost compared to developed economies, resulting in very low production costs; among the lowest in Africa.
So, in a rapidly growing population, businessmen see very high demand and opportunity to make a profit. At the same time, wiring money to Nigeria for investment will not only serve the investors but would also help the natives to achieve a better standard of life. Maybe, this is what Nigeria actually needs, and a lot!
The Present Nigerian Economy
Nigeria is implementing rapid development in its physical and industrial infrastructure, in terms of transportation, communications, electricity and water supply. They have started a structural transformation from a mono-product economy to a diversified, industrialized economy. After a long time, it seems that Nigeria is now prepared to live in a stable political environment. And a vast amount of resources are at their disposal. These include minerals, agricultural and human resources. Nigeria also offers the market in sub-Saharan Africa. The Nigerian market potential also stretches into the growing West African sub-region.
The government has created a favorable climate for business, investors and industrial ventures. They have ensured that administrative and bureaucratic procedures are streamlined and modernized with policies and programs that guarantee a free market economy. There are hundreds of problems in the Nigerian economy but the government seems to make the changes in the right direction. And this is what the businessmen and investors need!
So any person looking forward to doing business in Nigeria can gain more profits. And as a result of people nowadays generally invest money in the businesses that wire money to Nigeria. Despite certain problems like varying transmission fees, exchange rate margins and other forms of problems people still prefer investments in Nigeria because of the exclusive profits they reap from the country and its wealth of oil.
To facilitate this, there are money transfer services that provide a platform to instantly send money to Nigeria online at the lowest transaction rate. To avail the services, register on FAZRemit today!