BY BAMIDELE FAMOOFO
Deposit Money Banks in the country are working in partnership with the Central Bank of Nigeria to increase dollar inflow into the economy through remittances.
The target is to meet the projection for $34.89billion made by PriceWaterHouseCoopers (PWC) in 2023.
Dollar inflows to the economy support naira stability and import of raw materials needed to boost production and support real sector growth.
Over time, diaspora remittances have remained major sources of stable external financing for Nigeria. Countries have continued to harness these benefits despite the global fall in remittance flows in the last one year due to Covid-19 pandemic.
To keep the dollar flows coming, the Central Bank of Nigeria and commercial banks work closely to constantly improve Nigeria’s remittance infrastructure, ease the process of international money transfer and simplify the experience for senders and recipients.
For these stakeholders, the efficiency of remittance services, especially as provided through commercial banks’ and International Money Transfer Operators’ (IMTOs’) partnerships are critical to boosting dollar liquidity in the economy.
In this regard, the CBN had urged banks to develop products and investment vehicles, geared towards attracting funds from Nigerians in the diaspora.
In compliance with this directive, many commercial banks, including FirstBank, United Bank for Africa, Access Bank, Fidelity Bank, Zenith Bank, Guaranty Trust Bank, Ecobank, among others are using their wide network to boost foreign capital flows to the economy.
According to CBN Governor, Godwin Emefiele, the new measure would help to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerians in the diaspora.
The international money transfer is a fast and secure electronic payment service that allows money transfer across African countries and beyond.
Although the operational guideline for each IMTOs differs, the objective remains to provide seamless and affordable money transfer service to beneficiaries.
Already, many commercial banks have energized their branches and networks locally and internationally to attract dollar inflows under the “Naira for Dollar” policy of the apex bank and by partnering with IMTOs.
Many of the banks have partnered with MoneyGram, Western Union, Ria Money transfer, World Remit, Flutter Wave, AFTAB (Ace Money Transfer), Cash Pot, Colony Capital (Fincode), Swift Payment, Naira Gram, SmallWorld, Sendwave and Omnex to enable them serve more people in the remittance market.
For instance, UBA partnership with top IMTOs ensures convenience in sending and receiving money from anywhere in the world. Through the bank’s remittance partners, customers can receive money directly into their UBA account or pick up cash at any of its branches nationwide.
UBA has also created money transfer services that allow customers to deposit, transfer and withdraw cash in local currencies across 20 African countries.
Group Managing Director/CEO UBA, Kennedy Uzoka, said the bank supports the ongoing ‘Naira for Dollar’ policy which gives N5 rebate for every $1 sent by Nigerians in diaspora.
“Already, many commercial banks have energized their branches and networks locally and internationally to attract dollar inflows under the ‘Naira for Dollar” policy of the apex bank and by partnering with IMTOs
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FirstBank is equally supporting dollar inflow policies. The bank enabled its over 750 branches across the country to enable people to receive money sent by loved ones abroad.
Deputy Managing Director of FirstBank, Gbenga Shobo said FirstBank has partnered with many of the IMTOs and other money transfer firms to ensure its customers receive funds from abroad seamlessly.
“We consider these IMTOs essential to ensure FirstBank customers are at an advantage to receive money from their loved ones and business associates, anywhere they are, across the world,” he said.
Head, Consumer Banking, Ecobank Nigeria, Korede Demola-Adeniyi said the bank is also taking spots meant to boost dollar availability in the economy.
This, she said, was in line with the CBN’s directive and fully aligns with efforts to encourage the inflow of diaspora remittances into the country.
She said the CBN Naira 4 Dollar scheme is an unprecedented incentive for senders and recipients of international money transfers.
Country Manager, Nigeria and Ghana, at WorldRemit, Gbenga Okejimi, said the company was excited by the fact that it can continue to enable the transfer of remittances to more people across Nigeria.
For WorldRemit, the initial transaction is subject to a maximum of $2,000, while the maximum limit per transaction is $7,500, the total of which must not exceed $50,000 every six months. There are no charges to the beneficiaries.
For instance, with an Africash account and non- non-account holders can send and receive money in local currency from all its branches across Africa.
Also, the customer just needs to fill Africash form, provide Bank Verification Number, open savings/current account with the bank. For non-account holders, a valid means of Identification is required while the receiver should have the Personal Identification Number (PIN) code provided by the sender to collect funds.
Emefiele said that CBN’s policy on the administration of remittance flows is aimed at increasing the transparency of remittance inflows, reducing rent-seeking activities, and providing Nigerians in the diaspora with cheaper and more convenient ways of sending remittances to Nigeria.
