People send money to Nigeria through illegal service providers due to a lack of knowledge about their high fee as an intermediary channel. Considering the significance of remittances to Pakistan’s financial independence, the country must tackle problems that obstruct remittance inflows. Apart from the above reasons, illegal recruitment agencies play a significant role in limiting remittance inflow. These organizations stifle worker immigration from Nigeria by charging an “intermediary fee” that can be up to 20 times the monthly wage of the worker.
Several problems must be addressed in order to increase remittance inflows. The rise of illicit recruitment agencies is one example. Nigeria can achieve bilateral cooperation by developing good relationships with the destination country. Staff would have better job prospects without the possibility of being abused as a result of this.
Nigeria’s ability to maintain economic development and welfare has been reliant on online money transfers to Nigeria after 2015 or earlier. As a result, any problems that obstruct this must be addressed immediately.
What Are The Factors Inhibiting International Money Transfers To Developing Countries?
High transaction costs to money transfers to Nigeria are barriers to inflow and outflow in the remittance industry. This is why the United Nations has set a goal of reducing service fees from their current level of 7% to 3% by 2030.
The speed of payment, the strength of the network’s security through which the funds are transferred, the remittance service provider’s reliability, and the flexibility of modes of transfer are all important considerations to consider when transferring money. The general failure of most money transfer providers to meet these conditions contributes to the country’s reduced remittance inflows.
Why People Migrate From Developing Nations To Developed Countries?
Thousands of people cross borders each year to work in other countries. People migrate for a variety of reasons, but the plurality of migrant workers are forced to leave their home countries due to poverty and a lack of jobs. There are approximately 96 million migrant workers in the world, 28 million of whom are from African and the Pacific.
Remittance inflows to developing countries have increased significantly in response to the rise in the number of foreign workers—estimated at $435 billion in 2014. Remittances were more than substantially higher than official development assistance in 2013 and surpassed foreign investment in many nations. Among these workers, the majority of workers from Nigeria send money to Nigeria online to support families back in their home countries.