Nigeria is one among those countries which are expected to emerge as an economic hub of Africa. It is a populated country and termed as a “mixed economy emerging market”. It has reached the lower middle-income status with abundant natural resources, well-developed financial, legal, communications, transport sectors. Thanks to the Nigerian Stock Exchange, it is the second largest stock exchange in Africa. The one thing that needs attention here is population.
In Nigeria, the people living below the poverty line are 33.1% of the total population. In fact, a report says, Nigeria has the highest rate of extreme poverty globally. This is because many locals depend upon farming which has rotten in the past few years. Low productivity and national insecurities are big reasons. And so, people have the only option available to them, migration. People migrate to countries like the USA and send money from Nigeria to USA through transaction services. Yet, this is for those who still have some economic stability. But, what about the ones who struggle to afford a living. This is where the USA comes into the picture.
The need to involve…
During the second World-war, the USA had to enter the war-zone. So, many civilians entered military services. This is because labour demand for war industries generated a vast opportunity for the youth to earn. And so, post WW2, the USA was a better condition in the world economy. By 1890, the USA gained the status of “World’s most productive economy”. The Bretton Woods agreement in 1944 declared the dollar as the global currency. Earlier, trades involved gold exchange. This agreement allowed other countries to trade with the dollar rather than gold.
Later, due to many industrial sets up, there was a void for job applicants. So, many youths planned to move to the USA thereby helping strengthen their economy. With the salary earned, people from the poverty-hit states sent in remittances home. Since the USA is the highest job producer in today, with a good standard of living, it is the global leader. And even today, the USA is the largest job providing ocean for youths. With bigger companies offering better jobs, USA has become the premium choice for all. And so, thousands of Nigerians migrate to USA for better living. And most of them have to support their families in their native countries. Therefore they are searching for – how to transfer money from USA to Nigeria?
But the one thing that skipped our minds is, the USA has a strong industrial base, and Nigeria has abundant manpower. So, what this information has to do with the current scenario? Simple integration of the two points will do wonders, which means, if US-based companies, especially manufacturing plants, set up in Nigeria? There are a bunch of reasons why this is one of the apt reasons for transfer money USA to Nigeria.
Business opportunities in Nigeria
Cheap Land availability
As most of the land here is drought prone, the residents are willing to sell off their land at cheaper rates. So, land availability becomes easy. So, for giant manufacturing plants, land purchase is not an issue.
Being among populated region with a high number of people under the poverty line, Nigeria is the place with cheap labour. So, for bigger companies, a few employable skills, profits can be achieved.
Owing to the soaring economy, the government of Nigeria has made proposals to attract big companies for investing in their country. In return, the government is willing to provide them with all the necessary facilities.
The present scenario
Nigeria has consistently been ranked as one of the top three destinations for foreign direct investment (FDI) in Africa over the past decade until 2014, with Nigeria’s FDI stock reaching 98.73 billion in 2016, a 3% increase from 2015. While most of the investment is directed at the oil & gas sector, FDI flows are diversifying. This gives investors a strong reason to choose Nigeria.
Cheap petroleum supplies
As Nigeria is situated closer to the Atlantic Ocean and reports suggest that this country has dense petroleum supply. The fuels will be cheaper and readily available.
Cheap internal Transportation
As fuels are cheap here, internal transportation will be cheap. Thus, heavy transports will cost a minimal amount.
Access to major continent and countries
As this country is closer to an oceanic belt, transportation via ocean to continents like America, Europe, Australia and Asia, along with Gulf countries will be cheap.
These are the major reasons why one needs to invest in Nigeria.
Sources to transfer money from USA to Nigeria
Now the next question that arises in one’s mind is that how to transfer money from USA to Nigeria? Here is an idea that gives us an instance of how one can send money from USA to Nigeria.
After getting a job abroad, migrants send in a fraction of their salary back home. This is remittance. Remittance funds support the families of the migrants and help social causes. For example, undertaking development projects like the award of scholarship to students, provision of free medicare, the building of schools, health centres, town unions, rural electrification projects, and road construction. Remittance is the largest source of income in some countries, after FDI. Now, these funds can be used by the government to strengthen the public sector.
Since 2005, Nigeria has been considered to be among the “Next Eleven” – the countries identified by Goldman Sachs investment bank as having a high potential of becoming, along with the BRICS – the world’s largest economies. Therefore, investment banks should be sporty to provide funds to companies willing to set up their branch in Nigeria. Companies must initiate to set up plants in Nigeria for the points mentioned above.
International organizations should provide commercial funding to Nigeria. Thus, this initial assistance will help the present government improve commercial as well as educational grounds. Thus, these points duly answer how to transfer money from USA to Nigeria for business investment. The conclusion is that it is profitable to take a chance to invest in Nigeria. It will be cheaper as compared to working with expensive nations.