The Nigerian Diaspora is one of the biggest among the sub-Saharan countries in Africa. Money transfer to Nigeria from the United States has increased in recent years as well. A growing trend has seen them send money to Nigeria online
The United States of America has a total of 326,000 Nigerian first-generation Immigrants. This makes up 18.9% of the total African Immigrants in the US. More than 32% of Nigerians have an undergraduate degree and earn more than a normal American household.
According to a Newglobal Report, 33% of Nigerians plan to migrate in the next 5 years.
This will increase remittances to Nigeria even more in the coming years. Remittance services are therefore even more important than ever before.
So how do Remittances reach Nigeria? Do they use online services or use other means in order to transfer money to Nigeria?
Outdated and Cumbersome Past
International bank transfers are normal bank transfers but done across borders. Exchange rates of currency from the source of origin and termination of a transaction remain the only variable.
Banks charge a transaction fee for these across border transactions. These fees include exchange rates as well as processing fees. Banks providing money transfer to Nigeria from US charge around 10% as fees. It differs from bank to bank but can never go below 8%. This is a huge loss to both the sender and the receiver of remittances.
Bank-backed remittances take anywhere from maybe 2- 3 days to reach the destination. This is a loss of valuable time and can hamper immediate need of money.
Money Transfer Operators
The other option for Remittances is privately working Money Transfer Operators. They require a license from both the source and the destination to remit money legally. They also charge 2 – 9 % for transactions and may take a few days. The entire service is hassle filled and could cost more depending on the service provider.
The Nigerian Government also went on a banning spree of these operators in 2016. They cited some unwholesome activities of unlicensed money operators for the harsh step. This affected Money Transfer To Nigeria from USA and other countries causing unrest among the diaspora.
Online Money Transfer And the Future
The remittance structure to Nigeria seemed doomed until recently. The diaspora can now make use of services provided by service providers like FAZRemit to send money to Nigeria online.
When compared to MTOs and bank transfers, they offer a significant upgrade. Lower transaction fees and faster transactions prove their bedrock. The ease of use and secure transactions make them the best way to remit money online.
FAZRemit charges a transaction fee of 1.7% which is one of the lowest among online money transfer service providers. They also adhere to strict security checks for each transaction. KYC document checking and compliance forms can help the diaspora to securely send money to their loved ones.
The Move to Online Transactions
As noted earlier, almost 32% of Nigerians in the US have an undergraduate degree. Meaning they are prime candidates to use FAZRemit and other online providers for money transfer to Nigeria from US.
The change is on the horizon with 42% of Nigerians already having access to the internet. Moreover, 33% access it via their smartphones. Mobile Money transactions like those provided by FAZRemit prove to be on the rise.
Online transactions through FAZRemit have advantages like
- Fast and easy payments
- Ability to track your payments
- Secure Transfers between parties
- Easy to Use Interfaces
FAZRemit – The Best Platform to Send Money to Nigeria Online
According to a report by allAFrica, Remittance has increased from 14.1 billion in 2005 to $35 billion in 2016.
That’s a 148% increase that forms a major part of the Nigerian GDP. Money Transfer to Nigeria from US rose to $7.2 billion in 2017.
Remittance money forms a major party of the country’s GDP. This money is being used to diversify the oil-centric economy. Creation of jobs, raising standards of living and economic stability is on the agenda for the government. The Nigerian diaspora is a part of Nigeria’s growing mainstream economy through the remittance volumes.
This is an opportunity for money transfer services to improve and provide their best services for the customers. On this note, FAZRemit takes the cherry with instant and convenient money transfer to Nigeria from USA at the cheapest available rates.
Using FAZRemit assures you
- Lightening-fast Money Transfer to Nigeria
- 100% Security Guaranteed
- 25 Strong Registered Bank Network
- Cheapest International Money Transfer rates
- Round-the-clock Chat & Email Support
With FAZRemit you can be sure to transfer money within a single day or less. The Know Your Customer security procedures help to maintain secure transactions. FAZRemit has come to the forefront for industry leading low cost transfers. Send money to Nigeria online today at ease with no concerns.
To avail the services of FAZRemit, simply register on FAZRemit.