26 Sep 2022
Do you know that according to the World Bank data, more than 1 billion people depend upon remittances to manage their households and other needs? Due to insufficient employment opportunities in their countries of origin, several people yearly migrate to developed countries to seek better earnings than what they have in their home country.
In this regard, Nigeria is no exception whose 1.7 million people live and work in other countries, and support their families when they send money to Nigeria from abroad.
As an overseas worker, you must always be concerned about a secure and quick money transfer and the way international transactions are processed. Here, you can pretty much everything about what is a global money transfer and how long will it take to transfer money to Nigeria from abroad.
Well, to put it simply, a global money transfer refers to sending money from overseas to family and friends back home. Money transfers can be done in several different ways. Including but not limited to:
Currently, most people in foreign countries are increasingly using money transfer services to instantly send money overseas.
Over the last two decades, foreign migrant workers have increasingly sent a more significant share of their earnings. This is due to many benefits associated with sending money this way.
These include lower costs, convenience, speed and peace of mind for both the sender and recipient of the funds. Amazingly, that's more than three times what it was in 2000 which was only about US$152 billion annually.
Annual remittances are expected to cross $630 billion by the end of 2022. Nigeria has recorded $5.16 billion remittance in 2022’s first quarter (Q1’22). These stats are evidence that each money transfer to Nigeria from abroad keeps adding value to its people’s life and the country’s economy, overall.
Let’s find out the best answers to common concerns of a majority of the people about money transfers such as:
Keep reading to land with the best money transfer solution.
Nigeria has the largest money transfer market in Africa due to many factors, including its large diaspora population. The World Bank states that the year 2021 recorded approximately US$4.29 billion transferred to Nigeria. Showing a Year-on-Year (YoY) growth of 20.3%, these remittances have reached US$5.16 billion until Q1-2022.
Today, over 50 providers holding licenses are providing various types of money transfer facilities in Nigeria. These include banks, mobile money operators and non-bank businesses.
The formal money transfer industry is dominated by three players - FirstBank, GTB and Zenith bank which account for over 60 per cent of the market share. According to reports, FirstBank continues to be the largest wire transfer operator in Nigeria accounting for more than 30 per cent of all transactions processed across all channels with over 6 million customers served at their branches alone.
This dominance is largely due to their early adoption of internet banking and mobile banking services that allow direct transfers into users' accounts through different channels.
Mobile money providers like Orange Money (formerly known as Equitel) enforce no transaction fee when sending money from one mobile money account to another. This is a very important factor for those who have friends or relatives on the other side of the Lagos-Ibadan expressway.
The global average cost of sending remittances from G7 countries stood at 6.32 per cent. According to the World Bank, it’s about 9.85 per cent while Nigeria has one of the lowest costs in Africa with an average cost of around 3.5 per cent.
How about finding a service that charges extremely low fees to send money to Nigeria online from abroad? Don’t be amazed, you can get the best exchange rates and the lowest fees on sending money home using ACE Money Transfer, which is one of the most trusted remittance service providers for expatriates.
As it can be difficult and expensive using conventional means, remittance volume growth will be driven by increasing demand from Nigerian Diaspora. It has been growing at an average annual rate of 5 per cent over the last five years reaching about 17 million people; many of whom remit funds back home.
When you make a bank transfer, you want to be able to plan ahead and know how long it will take for the recipient to see your money in their account. If you use faster payment methods for sending money, you should receive the payment immediately. However, it can take up to two hours before you receive the payment.
Most banks offer tracking facilities for these types of payment, to enable you to monitor the progress of your payment as it moves between organisations. This facility isn't available for all banks, so you should check with your own bank whether it offers this facility.
The majority of successful Faster Payments made between customers are credited to accounts within seconds. So in most cases, you will not have to wait very long before the funds reach their account. Every Faster Payment that is created is assigned a unique transaction reference number.
In the world of finance people often find themselves dealing with confusing terms. The terms include 'credit card balance,' 'interest rate,' and 'payment plan.' But one term that nearly everyone has had to deal with at some point in their life is the term "transfer time."
Transfer time refers to the length of time it takes for money transfer from one account to another. For example, if you transfer money from your checking account to your savings account, how long will it take? If you transfer money overseas, how long will it take now that more countries have joined the Eurozone?
The transfer time will depend on the bank and the type of account you're transferring to. Money Transfer will usually take one business day. Although, sometimes, it can take up to three business days. While transferring money, the senders will need to send money via wire transfer, depending on the sending service.
Nigerian diasporas need not worry anymore. One of the leading remittance service providers, ACE Money Transfer, is always there to help. The company offers the most reliable, swift, secure, and convenient way to make an online money transfer to Nigeria whenever needed. Nigerian expats in the UK and other countries can send money to their families with the best exchange rates using ACE's services.
You must have found this article helpful! If you have any concerns, you can contact the proactive and responsive customer support team of ACE Money Transfer.