Every year, expatriates send money to Nigeria in billions. They were using financial services, especially in Africa, Asia, and Latin America. About 231 million people lived outside their birth country in 2013, according to the United Nations, and migrants from developed countries sent home $414 billion in the same year, according to the World Bank. By 2016, this figure was estimated to reach $540 billion.
Due to the economic crisis caused by the COVID-19 pandemic and shutdown, global remittances are expected to drop by roughly 20% in 2020. The predicted drop, which would be the steepest in modern history, is mainly due to a decline in migrant workers’ salaries and jobs, who are more vulnerable to job loss and income loss during an economic downturn in their host country. Remittances to low and middle-income countries (LMICs) are expected to drop 19.7% to $445 billion, robbing many poor households of a critical source of income.
Money transfer to Nigeria and the rest of the world are projected to decline across the World Bank Group’s regions, with Europe and Central Asia (27.5%), Sub-Saharan Africa (23.1%), South Asia (22.1%), the Middle East and Africa (19.6%). East Asia and the Pacific (19.3%) leading the way (13 percent).
How Online Money Transfer Works In Different Part Of The World So Quickly?
The outdated tradition of wiring money meets the new technology of electronic funds transfer, or EFT, of online money transfer to Nigeria and around the world. You probably use EFT regularly; it’s a fully electronic method of moving funds from one bank account to another. Data is traded, but not paper currency. Money is moved from your deposit account to the store’s bank account when you use your debit card at a money transfer service provider. Direct deposit payroll transfers funds from your employer’s bank account to yours. EFT includes all of these transfers, as well as online money transfers.
However, online money transfer is not the same as electronic funds transfer (EFT); this is not a way to pay your bills over the Internet. Online money transfer is the modern-day equivalent of wire transfer: you can send money to someone else instantly by transmitting money (or the data that represents money) from you to them. Sending money to Nigeria online can be done for a small fee from a safe, Web-based service from any device with Internet access, usually requiring nothing more than contact information — such as a cell phone number or an e-mail address — for the sending and receiving parties tied to a bank account. It is unnecessary to visit a money-wiring office, telegraph station, or even a high street bank in The UK.