14 Feb 2024
Remittance plays a very important role in building a country economically. For developing countries like Nigeria, remittance is also a significant part of annual GDP. It was difficult to handle remittances in the past because of typical and old money transfer methods. But now, since the advent of the digital remittance industry, it has become very easy to send money to Nigeria from every part of the world.
According to the research, there has been an increase of 0.7 billion U.S. dollars in personal remittances received in Nigeria, which is a 3.59 percent increase compared to the previous year. The total amount of personal remittances received in 2022 amounted to 20.13 billion U.S. dollars.
There has been a streak of increasing remittance for Nigeria. This article covers the remittance trends and reasons that helped the increase in remittance for the country.
The above statistics show that there has been a significant increase in Nigeria's remittance inflows. There could be many reasons for the increase, some of which are given below.
In the old days, the remittance industry was not much developed. People used bank transfers and typical methods to transfer money to their loved ones. Since the advent of the remittance industry, many digital platforms have stepped into the field, which has increased the flow of remittance to a great extent. People have a wide option of service providers to choose from when it comes to sending money to their loved ones.
Since digital platforms have entered the remittance industry, the competition among service provider companies has increased. Digital platforms provide better facilities and many opportunities, making it easier to send money online to Nigeria. Due to this, other companies and banks must also improve their services to stay in the market.
The risk of losing money to cyber attacks prevented people from sending money to Nigeria in the past through digital platforms. But now, with the advent of secure digital remittance and online platforms, the security of funds is also improving. Money transfers to foreign countries are very easy nowadays because of two-step and biometric security locks and verifications. Apart from that, online money transfer platforms like ACE provide facilities for tracking your funds that build people's confidence in sending money to their home countries.
The use of technology has also facilitated money transfers to a large extent. In the past, people used to go to banks because of their busy schedules, costing too much of their time. With the help of digital technological devices, people are saved from physically voting for a money transfer service provider. They can do instant money transfers to Nigeria using their mobile phones. They do not have to go out for it anymore. All required for a money transfer is having an account with an online money transfer service provider platform and active internet.
Remittance inflows help a lot in the economic growth and development of the country. This is more true for developing countries like Nigeria, where a significant part of GDP depends upon remittance. For this purpose, the government tends to take the incentives that are in favor of remittance growth. They make remittance inflows tax-free or put very little tax on the amount being sent. It motivates people to transfer money to their home countries without thinking twice.
The developed countries are also generous enough to provide good employment opportunities to people from underdeveloped countries. Hardworking people from developing countries search for more developed countries to move abroad, which may help with their careers and education. Once they are sure, they travel abroad and work hard for their loved ones. Eventually, they send money to their loved ones so that they can make their lives better. The increase in employment of people from foreign countries has also increased the level of remittance to a noticeable extent.
ACE Money Transfer has been at the top of the list of all the remittance service providers. It has so many facilities and conveniences for its customers that they cannot resist money transfers. ACE provides money transfer packages that offer a chance to win big cash and other prizes. It also provides its users luxuries like tracking finds. ACE money transfers are always smooth, quick, easy, and convenient. They offer the best exchange rates and minimum transfer fees as compared to others in the remittance market.
Since ACE customer satisfaction is a priority, it has motivated millions worldwide to transfer money to their home countries. For this reason, ACE Money Transfer has played a vital role in facilitating cash inflows to developing countries and has always been referred to as the ease maker.
Wrapping up, this blog deeply dives into current remittance trends in Nigeria, which shows a consecutive increase in cash inflows for the country. The reason is obvious: People make money transfer to Nigeria more often. Undoubtedly, all the factors are equally important for increasing the country's remittance market, but the most important factor that works for developing countries like Nigeria is the online money transfer platforms. They have done wonders to increase the remittance percentage for developing countries by making the money transfer process convenient, simple, easy and safe.
The personal remittances received in Nigeria increased by 0.7 billion U.S. dollars, which is a 3.59 percent increase since the previous year. The total amount of personal remittances received in 2022 amounted to 20.13 billion U.S. dollars. Personal remittances comprise personal transfers and compensation of employees.
Remittances significantly impact economic growth in Nigeria through investment in private and human capital, with a pass-through effect on private consumption. Also, remittances have the capacity to reduce poverty through a multiplier effect.
Remittances can improve the well-being of family members left behind in Nigeria and boost the growth rates of receiving economies. They can also create a culture of dependency, lowering labor force participation in the country, promoting conspicuous consumption, and accelerating environmental degradation.
Remittance is one of the important sources of revenue for a country and plays a vital role in its economic growth and development. There are two types of remittance: Inward Remittance and Outward Remittance.
Remittances are primarily money that migrants send home to support their families. They alleviate poverty, improve nutritional outcomes, and are associated with increased birth weight and higher enrollment rates for children in disadvantaged households.
Reference
https://www.brookings.edu/articles/how-to-keep-remittances-flowing/
