The world commemorates the 16th of June as International Day of Family Remittances since 2015. The International Fund for Agricultural Development (IDAF) proclaimed it in February 2015. The United Nations adopted it as recently as June 2018. The day aims to shine a light on the massive contribution of the migrant workers to their families and their country of origin.
Remittance refers to the money sent home by migrant workers to an individual or their family in their home country. It is not for gaining goods or services per se. The recipient households spend the economic gains of family remittances for the most basic human needs. This includes education, health upkeep, and household expenses. It would also serve the purpose of upliftment of the society and enables formal economic stability.
What is at stake?
The commemoration tries to celebrate the impact of remittances on the developing world. Remittances make up a huge part of the GDP of all developing countries. India was the benefactor of the largest remittance inflow in the world in 2018. The low – medium developing countries in the African continent also saw high remittance inflows. Nigeria, the sub-Saharan country with the highest population saw a remittance inflow of $24.08 billion in 2018. That made up 83% of Nigeria’s federal capital budget for the year according to the PwC report. Online Money Transfer Services like FAZRemit opens up corridors for greater remittance inflows.
The celebration also aims at encouraging such remittances and providing migrants with a value for their transactions. The wide-ranging impact of these funds is present everywhere, from infrastructure to education to a stable economy. Remittances have increased ever since 2000 and still only make up 1% of the global GDP. But the value it holds for the household dependent on them is not quantifiable. Services like FAZRemit helps to send money online to Nigeria at the most affordable rates. We offer the Nigerian Diaspora the best value for their remittances.
What is the Global Remittance Scenario?
Migrants go through banks or IMTOs to transfer money to their families back home. Along with strict ID checks they also have to pay high processing fees and wait for days before the transaction goes through.
Banks sending money to Nigeria and other African countries do not provide the customers with value. They often give unfair currency exchange rates for these high-risk countries and transfers take weeks. The IMTOs follow suit with these banks and charge a percentage as processing fees. It leaves the migrants having to pay a premium with the charges often reaching double figures.
The average cost to send $200 globally is 7.1% while for Sub-Saharan countries, it is 9.4%. This, in fact, provides the migrants with no value for their hard earned money. And the recipient households bear losses for the inefficient transfer methods.
While remittances grow, it is the job of the institutions handling them to reduce the transfer costs. FAZRemit does their bit in reducing the cost of remittances. It offers the lowest transaction fees for remittances to Nigeria, Ghana, and Kenya from the US. The platform offers services for migrants to send money online to Nigeria at just 1.7% handling fees.
Why does Nigeria Need More Family Remittances?
The developing nation of Nigeria was oil dependent, but the economy has shifted since the oil crisis. The government has diversified the economy for future economic stability. It is in this transition phase that remittances play an even more important role for the Nigerian society. The families of migrants and the Nigerian citizens are facing a lot of hardships right now.
Unemployment rates are the highest, with 16 million people unemployed. Child Labor is increasing and adversely affecting the holistic growth of the younger generation. It plunges the future of the country into doing manual labor when they should be in schools. About 20 million child laborers are present in Nigeria as of 2018. Food safety and food security are invisible and are a humanitarian crisis in many parts of the country.
The economic instability and social turmoil the country finds itself in is heart-breaking. And it is the Diasporas who are helping the country the most.
Where does FAZRemit fit in?
FAZRemit offers the Nigerian Diaspora in the United States with online money transfer services to Nigeria. We ensure safe, fast and affordable transactions into Nigeria. Affordability is key for the platform.
Registering to FAZRemit is easy. Automated KYC document checks allow for far greater security of transactions and the user’s money. Instant online money transfers to Nigeria provide your loved ones with an easy solution to any economic hardship they face. FAZRemit also prides itself in ensuring the lowest processing fees for remittances to your families. The fee of 1.7% is the lowest in the market and provides an insane value for the customer.
We firmly believe that the money saved in these processing fees can help those in real need. It would also help to grow the country of Nigeria into one of the developed democracies in the world. With food safety, future employment options and the abolishment of Child labor, the country can move forward.
Join FAZRemit today to invest in this noble idea by saving money to send more money. Use this platform this International Day for Family Remittances to send money to Nigeria online from US. Help your families and your country to prosper.