Send Money To Nigeria
Almost 57 years after it gained its independence, Nigeria still faces challenges in bridging both ethnic and religious divisions. Separatist aspirations continue to grow with several states in the north imposing Islamic law. Thousands of Christians have been forced to flee these regions.
Nigeria’s large population, coupled with its large economy is the reasons it has been christened the “Giant of Africa”. It is Africa’s most populous nation and seventh in the world with approximately 184 million inhabitants. The country is divided into a predominantly Muslim north and a predominantly Christian south.
In 2015, Nigeria had an economy worth over 400 billion pounds which was ranked as the 20th largest in the world. The World Bank considers it to be an emerging market.
Popular money transfer services that send to
The naira (NGN) is Nigeria’s official currency and only legal tender. One Naira is divided into 100 kobo. The naira has been used in Nigeria since 1 January 1973 when it replaced the Nigerian pound. As long as the Naira has existed, Nigeria has been continuously beset by rampant inflation, with the Central Bank of Nigeria implementing a number of measures in an attempt to stabilise the currency.
One NGN is the equivalent of 0.0025 British pounds and 0.0031 US dollars. If you are travelling from the UK to Nigeria, you need to convert your pounds into naira. The banks and exchange bureaus there can also exchange for you but sometimes the costs can be quite exorbitant. There are also many ATM machines, so your card can come handy. Also be prepared to do a lot of mental arithmetic as virtually all prices are quoted in naira.
Send Money with Bank Deposit
International money transfer malpractises have been a thorn in the flesh for Nigerian authorities for a long time. Despite numerous pieces of legislation, the government has not managed to stay on top of the game. There is still a thriving foreign currency black market competing with the mainstream market.
Less than a year ago, the Central Bank of Nigeria shocked many when it suddenly changed the guidelines for money transfer operators. All but three licences of money transfer companies were revoked. The decision had been preceded by a warning that advised Nigerians abroad to be careful about dealing with some unlicenced international operators. The move effectively blocked many channels that Nigerians use to send money internationally.
Under Nigerian law, no person or institution is allowed to provide international money transfer services without a licence from the Central Bank of Nigeria (CBN).
Money transfer operators who wish to engage foreign partners must obtain a letter of no objection from the CBN.
Money transfer operators are not allowed to:
1) Act as dealers in gold or any other precious metal
2) Engage in taking deposits or lending money
3) Maintain savings accounts on behalf of customers
4) Engage in institutional money transfers
5) Establish letters of credit.
Money transfer service operators are also not allowed to close their main offices temporarily without the consent of the CBN.
The limit for an outbound money transfer is $2,000 or its equivalent.
Send Money Through Cash Pickup
No one wants to spend too much to send money to a loved one. With sufficient information, sending money from the UK to Nigeria or Nigeria to the UK does not have to be an expensive affair.
Many banks in the UK offer the service to remit funds to Nigeria. But in most cases, there are fees involved and the exchange rates offered are, in most cases, lower than the market rate.
If you are sending money to or from Nigeria through bank deposits, look out for the following:
1) Exchange rate
Almost all providers manipulate rates to earn a profit. Take time to compare the rate offered to what is offered in the mid-market.
2) Transfer fees
In almost all cases, there is a fee involved. Find out if it’s a percentage of the amount transferred or a flat fee. A percentage based fee can be very costly when sending a substantial amount.
3) Transfer limits
In most cases, the amount you wish to spend determines your leverage. Large amounts get better exchange rates while smaller amounts attract some fees.
Money Transfer Regulations
Nigeria has a very big number of people in the diaspora. This means that international funds transfer is a big business in the country. At the same time, it is very easy to fall victim to scams when using money transfer services in Nigeria.With many cash pickup options in Nigeria, this is one of the most viable methods of transferring cash. For example Western Union has more than 50 locations in Lagos alone.
It is very convenient especially the fact that money reaches the recipient almost immediately. That being the case, a Nigerian parent in the UK can pay a child’s school fees on the school’s opening day through cash pickup. Without cash pickups, one would probably have to do it weeks in advance in order for the money to arrive in good time.
The simplicity of the process is another great advantage of cash pickups. There are no account opening processes involved and one does not to fill too many forms.