Remittance inflows made up 83% of the federal budget capital for Nigeria in 2018. The sub-Saharan country with around 200 million people had a $25.08 billion remittance inflow. Migrants wire money to Nigeria to support their families and friends. Remittances from Nigerian Americans accounted for $7.2 billion and will rise even more. The reality of remittances to Nigeria is widespread and wide-ranging.
Banks and IMTOs have long held the supremacy in services which help to transfer money to Nigeria from the US. These financial institutions offer their customers cross-border money transfer services at premium prices and little value. The users of these services have to decide based on speed, security, and affordability. But what do online money transfer services like FAZRemit help its users to achieve?
Checking the Corridors
Banks are the oldest financial institutions that help in cross-border transactions. Migrants have reduced bank wires because of the 2-3 week delay in remittances and the processing fees. Banks markup foreign exchange rates according to which they charge these services. This gives limited value to the users and people who need speedy transfers turn to IMTOs.
International Money Transfer Operators make faster remittances possible with branch-to-branch transfers. This means that people who use these services need to drop cash at collection branches in the US. The service helps to wire money to Nigeria within 2-3 working days. The receiver of the remittance needs to be physically present to collect the money from the IMTO’s branch. Just stating the process causes a lot of red flags to go up.
Disadvantages of using a wire transfer to Nigeria with cash
Using cash as a means of money transfer to Nigeria from the US creates a unique problem. Because of no accountability, these transactions do not help the economy. These transactions do not help reduce the problem, it aggravates it.
There are several reports which cite unaccountable wire transfers being used for illicit transactions. These illicit transactions can derail the economic growth of the country. Unaccounted money circulation leads to inflation. This would increase the price of household items and create more problems for household economies.
What can we do to reduce cash transactions?
FAZRemit and safe wire transfer to Nigeria
FAZRemit is an online money transfer service that is creating remittances easy and accountable. The platform ensures its customers fast, safe and affordable money transfer to Nigeria from the US.
Online transactions remit money instantly, just as easy as it is to register on FAZRemit. We do KYC checks during the registration to the platform. The service safeguards the money of the customer and the customer himself from illicit activities. Since we do the transactions through bank accounts, the transactions get accounted for. This money inflow also helps the government to better asses the economy and growth structures. FAZRemit’s partnerships with over 20 banks in Nigeria help customers be a part of the economy.
FAZRemit offers these services at 1.7% of the remittance amount. This is the lowest processing fee charged by any platform in this corridor.
Join FAZRemit to wire money to Nigeria from the US. Make legitimate, safe and affordable transactions to your friends and families who need it the most.