The United States of America is called second home by one of the largest Nigerian Diaspora in the world. They are also regarded as the most educated ethnic group in the US. The Nigerian-born population in the country rose to 221,000 in an American survey of 2018. The total diaspora in America adds up to just under 400,000 when accounting the children.
The Nigerian Diaspora continues to contribute to the development of their home communities back in Nigeria. Yet they lack a large scale formal structure to properly make use of resources. They are a great source of economic and social development for Nigeria due to large inbound remittances forming a large part of their GDP.
Current Trend of Remittances to Nigeria from USA
The 2018 end quarter report from the world bank shows $24.3 billion being remitted to Nigeria from diaspora worldwide. The remittances to Nigeria from USA alone are $4.5 billion according to 2018 reports.
The harsh reality is that they pay anywhere from 7% – 8% as fees for the service. Fees for money transfer to Nigeria from US through banks may be as high as 10%.
This creates a massive loss of actual money for both senders and receivers.
Money transfer to Nigeria from USA may take 2 weeks to be updated. It is imperative to create a fast and inexpensive corridor to send money to Nigeria from USA. Reason being, Nigeria is considered a high-risk zone. Because of the unavailability of proper technical infrastructure and data repository, financial companies hesitate to do business in the country. Why?
Because in case any compliance issue is reported, the institutions need to pay a hefty fine. Just to give a number, in the past decade, large institutions have paid over US$25 billion as penalty. Therefore, those who do provide services in such areas, charge very high transaction charges.
However, online money transfer services like FAZRemit ensures thorough customer verification. Consequently, the risk is minimised through automatic risk score generation. This cuts down the overall operational cost as well. Thus, customers get the cheapest way to send money to Nigeria securely and safely.
What is on the horizon for Remittances to Nigeria from USA?
The technological and financial structure in Nigeria has stabilized with development. They show promises of future growth with 56% of Nigerians already having access to the internet.
Further statistics show that 87% of Nigerians use smartphones. Various efforts have been engaged to deploy mobile money services in Nigeria. Nigerians are finally using mobile money due to cheap and advanced telecommunication systems. Africa’s largest economy is on its way to becoming truly cashless.
Mobile banking improves financial inclusion for people in rural regions. It also affects immigration flows, poverty rates, and most importantly remittances.
What Are the Factors Driving Change?
The huge potential a mobile money market has in Nigeria is clear. Reasons include increasing mobile and internet penetration, finite physical banking reach, and a population touching 200 million. Despite these factors, Mobile money services were slow to reach the masses or be accepted.
That was until development really hit its stride. The Nigerians within the country are moving into a cashless economy. The popularity of smartphones and the absence of banks in rural areas has brought this to the forefront.
High costs of the Remittance service providers reduce the benefits of diaspora. Moreover, the De-risking action of banks leads to the closure of bank accounts of remittance service providers. This has led to a vacuum for better services like FAZRemit’s mobile money transfer.
Social changes and economic changes go hand in hand. Statistics show an increase in unemployment rates in 2019. It is important that the diaspora send money to Nigeria from USA in order to enhance society. Now it is more important to get remittances done in the fastest, safest and cheapest way possible.
How is Government Helping?
Money Transfer to Nigeria from USA has never been easier or faster.
Sending money to Nigeria online through mobile is the most cost-effective option. There has been an increase in this form when compared to any other form to send money to Nigeria from US.
Facilitation of safe transactions is a reality with the implementation of the Electronic Certificate of Capital Importation (eCCI) by the Nigerian banks. They also Keep in check illegal and illicit transactions into the country. Nigeria has also become a member of the International Association of Money Transfer Networks with economic development in the agenda.
The telecommunications sector is collaborating with finance to include mobile banking and e-payment apps. The government is thus encouraging services like FAZRemit’s Mobile Money Service to supplement remittances to Nigeria from USA.
Stay ahead to benefit – The Motto
In 2019 it is easy and fast to send money to Nigeria with the help of technology.
It is important to read all about service providers and their services. Not doing so leads to problems like
- High level of international transaction fees
- Tracking problems
- Fraudulent services
- Loss of valuable money and time for both the customers and service providers
This is where FAZRemit helps its customers stay safe with more than 25 banks registered on its online platform. This gives customers opportunities seldom provided by others. Your remittances to Nigeria from USA stay safe, not to mention easy, fast and affordable.
Banks may charge up to 10% of total transaction cost as service fees. While using FAZRemit customers can send money to Nigeria from USA at 1.7%. A huge difference and benefit!
The maximum transaction amount is $10,000 a month. In case one wants to send more money through the platform, he or she needs to fill a compliance form. So, basically, there is no limit!
Add to it the reach of Mobile Money services and money transfer from USA to Nigeria becomes very simple.
FAZRemit’s Mobile Money Service makes sure to provide a faster, affordable, and most importantly, safer transactions. This ensures that every single transaction goes from one verified customer in the United States to another verified individual in Nigeria.
The future of sending money from USA to Nigeria looks bright with the help of easy safe and fast services like FAZRemit. So, register now!