By Jeph Ajobaju, Chief Copy Editor
FirstBank, the pioneer of global funds transfer in Nigeria, has increased its network of International Money Transfer Operators (IMTOs) to ease customers’ access to money remitted from about 100 countries worldwide in a safe and secure manner.
The network expands diaspora remittance inflow, which amounted to $65.34 billion in three years to 2000 to boost economic activities in Nigeria.
Latest data from the World Bank shows that Nigerians living abroad remitted $17.21 billion in 2020, $23.81 billion (2019), and $24.31 billion (2018). An average $21.77 billion remittance in the three years.
Diaspora remittance accounted for 4 four per cent of Nigeria’s Gross Domestic Product (GDP) in 2020, according to the World Bank.
The United Nations Department of Economic and Social Affairs (UNDESA) estimates Nigeria’s diaspora population at 1.7 million as of 2020 – meaning that average remittance per Nigerian diaspora was $38,428.15 in the three years.
FirstBank’s facilitation
FirstBank is facilitating this inflow with over 750 branches across the country, where customers can receive money from the nearest FirstBank branch closest to them.
The bank says it has, over the years, been in partnership with Western Union, MoneyGram, Ria, Transfast, and WorldRemit.
It also partners with other IMTOs which include Wari, Smallworld, Sendwave, Flutherwave, Funtech, Thunes, and Venture Garden Group to promote remittance inflow to put Nigerians and residents at an advantage in receiving money from their families, friends, and loved ones across the world.
Beneficiaries can receive remittance in United States dollars in any of its over 750 branches spread across the country.
Customers without a domiciliary account can have a dollar account automatically created for their remittances. They can also receive inflow directly into their account through Western Union.
FirstBank has also launched its own remittance platform named First Global Transfer to promote funds transfer across its subsidiaries in Africa.
These subsidiaries include
· FBNBank DRC
· FBNBank Ghana
· FBNBank Gambia
· FBNBank Guinea
· FBNBank Sierra-Leone
· FBNBank Senegal
“At FirstBank, expanding our network of International Money Transfer Operators is in recognition of the significant roles diaspora remittances play in driving economic growth such as helping recipients meet basic needs, fund cash and non-cash investments, finance education, foster new businesses and debt servicing,” said FirstBank Deputy Managing Director Gbenga Shobo.
“We are excited about these partnerships, as it is essential to ensure our customers are at an advantage to receive money from their loved ones and business associates, anywhere they are, across the world.”
FirstBank pioneered international funds transfer and remittances over 25 years ago and has been at the forefront of promoting cross border payments in the country, having started the journey with Western Union Money Transfer.
The bank’s wealth of experience and operation in over 750 locations nationwide gives it the edge in the market.
Pwc highlights importance of diaspora remittance to Nigeria’s economy
The United Nation estimates that there are 1.24 million migrants from Nigeria in the diaspora as of 2017.
PwC adds that this figure is likely to be higher in 2018 and 2019 with the recent trend in migration from the country.
Almost half of Nigerian adults say they are willing to leave the country in the next five years, according to a 2018 survey conducted by the Pew Research Centre.
Nigeria accounts for over a third of migrant remittance flows to Africa, with PwC estimating that these flows amounted to $22 billion in 2017 and $23.63 billion in 2018, representing 6.1 per cent of Nigeria’s GDP.
Migrant remittances translated to 83 per cent of government budget in 2018 and 11 times Foreign Direct Inflow (FDI) in the same period.
Nigeria’s remittance inflows was also 7.4 times larger than the $3.4 billion net official development assistance (foreign aid) received in 2017
PwC estimates that migrant remittances to Nigeria could grow to $25.5 billion in 2019, $29.8 billion (2021), and $34.8 billion (2023)
Over a 15-year period, PwC expects total remittance flows to Nigeria to grow by almost double in size from $18.37 billion in 2009 to $34.89 billion in 2023.
The growth in remittances is subject to global economic forces, which could spur or hinder growth of remittance flows,
Other factors that will drive remittance flows include growth in emigration rate, economic conditions of the resident countries and the economic fundamentals in the Nigerian economy.
Nigeria ranks second in African diaspora remittances
The 2021 Nigeria Diaspora Remittance Report & Survey released by Agusto Consulting shows over $21 billion annual inflows from diaspora remittances, making Nigeria the second-largest recipient of remittances in Africa after Egypt.
It reiterates that diaspora remittances become a major mainstay of Nigeria’s economy. At the macro level, they represent the second-largest source of foreign exchange inflow into the country, second only to crude oil earnings.
The survey estimates and defines remittances to Nigeria in terms of value, transmission channels, and seasonal patterns among others.
While the primary focus of the survey was on remittances, it also covered pertinent issues around migration and its impact on diaspora remittances.
The report also initiated coverage on the major MTOs in Nigeria. This coverage includes the views of respondents.
The following insights were extensively discussed in the report:
· An overview of the Global and African Diaspora Remittance Market
· An economic overview of the Nigerian Diaspora Remittance Market
· A deep dive into key findings derived from interactions with the survey respondents
ü Preferred Remittance Channels (both formal and informal)
ü Remittance Frequency
ü Reasons for sending money into Nigeria
· Focus Group Discussions with respondents in Canada, the United Kingdom, and the US
· Profile of the major Money Transfer Operators
· The impact of Covid-19 on the remittances and evolutions in consumer
Benefits of the report
· A deep understanding of the Nigerian remittance market
· Volume/Value of remittances into Nigeria (2016-2022f)
· Key growth drivers for our forecasts
· Risks to our forecasts
· Insights to enable banks and MTOs make informed decisions on key trends, pricing, and consumer behaviour
· Understand the impact of remittances on the Nigerian economy
· An overview of major MTOs in Nigeria
· Key strategies, strengths and weaknesses of major MTOs in Nigeria
About FirstBank
FirstBank is the premier bank in West Africa and has been the leading financial inclusion services provider in Nigeria for more than 127 years.
It boasts over 750 business locations and over 120,000 Banking Agents spread across 99 per cent of the 774 councils in Nigeria, providing comprehensive retail and corporate financial services to more than 30 million customers.
It has international presence through its subsidiaries – FBN Bank (UK) Limited in London and Paris, FBNBank in the Republic of Congo, Ghana, The Gambia, Guinea, Sierra-Leone and Senegal, as well as a Representative Office in Beijing.
FirstBank promotes digital payment and has issued over 10 million cards, the first bank to achieve such a milestone in Nigeria.
Its cashless transaction drive has garnered 12 million people on its USSD Quick Banking Service through its *894# code and over 4.5 million on its FirstMobile platform.
Since its establishment in 1894, FirstBank has built relationships with customers focusing on good corporate governance, strong liquidity, optimised risk management, and leadership.
It has for years led the financing of private investment in infrastructure in the Nigerian economy by playing key roles in government privatisation and commercialisation schemes.
It supports investors wishing to explore the vast business opportunities in Nigeria, as a competitive world-class brand and a credible financial partner.
Folake Ani-Mumuney, FirstBank Group Head (Marketing & Corporate Communications), lists other accolades won by the bank to include:
· “Most Valuable Bank Brand in Nigeria” six times in a row (2011 – 2016) by The Banker Magazine of the Financial Times Group.
· “Best Retail Bank in Nigeria” for seven consecutive years (2011 – 2017) by the Asian Banker International Excellence in Retail Financial Services Awards.
· “Best Bank in Nigeria” by Global Finance for 15 years.
“Our brand purpose is always to put customers, partners and stakeholders at the heart of our business, even as we standardise customer experience and excellence in financial solutions across sub-Saharan Africa, in consonance with our brand vision ‘To be the partner of the first choice in building your future,’” she stresses.
“Our brand promise is always to deliver the ultimate ‘gold standard’ of value and excellence. This commitment is anchored on our inherent values of passion, partnership and people, to position You First in every respect.”
