Nigerian Banks, Others to Earn $1.19bn Remittance fee in 2019

• Nigerian Banks, Others to Earn $1.19bn Remittance fee in 2019

A global consulting firm, PricewaterhouseCoopers (PwC) has predicted that Nigerian banks, mobile money operators and other financial companies aiding cross border financial transactions may earn $1.19 billion from remittance fee by the end of 2019.

In its report titled, ‘Strength from abroad: The economic power of Nigeria’s Diaspora’ PwC had predicted that payments from Nigerians in the Diaspora could increase to $25.5 billion this year, hence the possibility of a total of $1.19 billion remittance fee for payment firms.

The report further projected that, depending on major economic determinants in this regard such as; growth in migration, economic conditions of residing countries and economic fundamentals in Nigeria by 2021, remittances to the country would rise further to $29.8 billion and $34.8 billion by 2023.

As if in confirmation to the prediction by PwC, the World Bank had revealed in a report that, for every $200 sent to Nigeria, an additional $19 is paid as remittance fee; thus making Nigeria the most expensive country to send money to from the Diaspora.

PwC analysts also revealed that in 2018, Nigeria and Egypt led the African continent as countries with the most inflow of remittance; with Nigeria topping the list in 2017.

The consulting firm believes; a rise in oil prices which enhanced economic activities in all oil producing countries, worldwide economic growth particularly in OECD nations, amongst others, are factors that may have boosted the increase in remittance.

“Sub-Saharan Africa remains the most expensive place to send money to, where the average cost is 9.4 per cent, about 25 per cent higher there than in the rest of world. However, these costs have been decreasing over the last 10 years partly because of the rise of mobile money technology.” The report said.

A chief Economist and analyst at PwC, however, disclosed that payments through money transfer operators and post offices were twice more expensive than payments through mobile money. He further said that payments through commercial banks are three times more expensive than payments through mobile money; making mobile money the cheapest route to make payments.

The global consulting firm is hopeful that payments would increase as more countries in Sub-Saharan Africa embrace mobile money technology.