Business
X-raying emerging trends and innovations in the Nigerian remittance market
![MG_logo[1]](https://i0.wp.com/sahara.test/wp-content/uploads/2016/01/MG_logo1.png){kind=logo}
![Phone(1)[1]](https://i0.wp.com/sahara.test/wp-content/uploads/2016/01/Phone11.jpg)
One of the novel fallouts of the twenty-first century is the increasing significance of remittances as a composite of household disposable income. Remittances represent household income from foreign economies arising mainly from the temporary or permanent movement of people to those economies. Remittances include cash and non-cash items that flow through formal channels, such as across electronic wire, or through informal channels, such as money or goods carried across borders. International experience suggests that remittance flows have important implications for macroeconomic and financial stability. As such, accurate compilation and recording of remittance flows as well as new trends and innovations in remittance corridors are crucial for understanding the behavior of the remittance market.
Remittances contribute to economic growth and to the livelihoods of people worldwide. Money sent home by migrants constitutes the second largest financial inflow to many developing countries, exceeding international aid.
According to the World Bank figures for 2011, total revenue for the Global Funds Transfer segment was $300.2 million in the fourth quarter of 2011, up 8 percent from $276.7 million in the fourth quarter of 2010. The segment reported operating income of $33.4 million and an operating margin of 11.1 percent in the fourth quarter of 2011. Adjusted operating margin was 14.0 percent in the quarter, up from 11.9 percent in the prior year’s quarter. Q3 2015 Earnings result by MoneyGram International, one of the two global heavyweights in the money transfer operations sector, puts its revenue growth at 67%, with annualized revenue figure for the period at $160million. Western Union’s profile too is equally impressive.
Remittances have a distributive impact on households as income and consumption
patterns are affected. The vast majority of remittances are used to provide for the basic needs of households regardless of the country, with siblings and parents the most likely recipients. Generally, the major uses of remittances in Nigeria include housing, consumption and education financing, with spikes generally observed in remittance flows during back to school and pre-Christmas periods.
The favourable impact of globalization on the movement of skilled immigrants as well as the large advances made in the use of technology accompanied the beginning of the
twenty-first century. Against this background, the size of the Nigerian Diaspora community worldwide increased, precipitating significant increases in remittance flows into the country. Wikipedia estimates that 20m Nigerians reside outside the country with majority in the UK and US while the British Foreign office states that the population of the Nigerian community in the UK is between 800,000-3million.
According to the World Bank, the Nigerian remittance market is worth well over $10 billion. Besides the size, the market has enormous opportunity and growth prospects.
MoneyGram International and Western Union are two foremost MTOs that have deepened their dominance of the local remittance market largely through their sharp lookout for trends and innovations in product development as a strategy of delivering customer delight. Of particular note is increased economies of scale of the two major operators attributable to their worldwide expansion in the number of agent locations as well as the introduction of electronic money transfer system. This has created a significant reduction in costs of transfer and improvement with regard to ease of transferring funds, thereby attracting more and more customers into the net.
In its nearly twenty years of operations in Nigeria, MoneyGram has proved to be a real leader in the strategy of securing first mover advantage in deploying innovative products to broaden its market appeal and customer base. The latest of such is its new Cash-to-account service offering which, again, is the first in the Nigerian remittance market.
For a society like Nigeria where the role of remittance in solving personal and family financial needs is highly acknowledged and where also the rate at which personal and family issues requiring financial interventions come up is astoundingly rapid, a product like cash-to-account money transfer is a welcome development.
This new service offering allows remittances to be received directly into the receiver’s personal bank accounts anywhere in the country and same accessed any day or time just like any other deposits.
Unlike the standard money transfer service, the new MoneyGram Cash To Account (C2AC) does not require the receiver to physically visit any agent location for identification and other formalities before he or she can access transfers.
Picture a scenario in which a family member has a life-threatening occurrence on a Saturday that requires financial intervention same day and to solve the matter, you need to access fund transferred to you by a family member abroad. In the pre-cash-to-account era, the earliest you could access such fund would be on Monday and havoc might already have been done.
The birth of the cash-to-account offering means right in the comfort of your home or through any other means of accessing your regular bank account that you are comfortable with, you can access and spend funds transferred to you in Nigeria from any part of the world anytime.
Investigation shows that the transaction process (starting with actual transfer abroad and the fund landing in the receiver’s account in Nigeria) can be concluded within 10 minutes.
A customer sending money to Nigeria from the US, UK, Germany, Italy and many other countries of the world can indicate at the point of send whether he / she wants the remittance to be collected in cash ( over-the-counter) in Nigeria or be sent to hit a bank account in Nigeria. All that is needed, in addition to the standard sender details (Sender’s first and last names and telephone number), is that the sender will be required to supply recipients name (first and last), their 10 digit numeric NUBAN account number, their bank name and the purpose of the transaction
Once transaction is successfully completed, receiver’s account is credited in Nigeria instantly and, on receipt, the local bank alerts him/her via email/SMS notification just as it happens in the regular banking transactions. The receiver does nothing as his/her account is directly credited. No form to fill; no visit to agent for identification; no payment of any landing cost.
With near or real-time connections, the receiver has access to the funds whenever he/she wants. Funds are available to receivers 24/7, 365 days in the year and they can easily retrieve money transfers from their accounts at night, during public holidays and on weekends using any of the e-transfer channels, ATM, POS and other available withdrawal platforms.
Speed, convenience and ease of mind are in-built features of this new innovation. Fund is guaranteed to be securely deposited directly into receiver’s account with the risk of fraud and other malpractices hitherto associated with fund transfer receivership in the country eliminated.
Befittingly, the new cash to account offering has been pioneered in the Nigerian market by MoneyGram International which is the only MTO with a fully functional regional office in the country. It may be argued that establishing its West African hub in Lagos has helped the brand to be better able to understand the needs of the local market and also offer quicker and better marketing and operational support. Such understanding of market needs and dynamics is required more from other market players for the nation’s remittance market to remain abreast of global trends and innovations.
NNPCL and Corruption’s Final Throes
By Pius Olasanmi
In the twilight of the Obasanjo administration, when Nigerians were still capable of being outraged, when Turn Around Maintenance (TAM) of refineries was a buzzword that still held some mysticism to bamboozle citizens, during a conversation, a certain man said something profound. The man said, “As a businessman, if I were the owner of these refineries, knowing that they are three decades old, I would take the last money I have, hire bulldozers, raze them to the ground, and obtain loans to build new ones.”
When we pressed him further on why he would engage in such waste, he explained that repairing the refineries is the real waste. He explained that even if the TAM were honestly carried out, a thirty-year-old refinery would never compete favourably with a new one that would integrate contemporary technology. Operating at its best, such a refinery would never be comparatively more efficient. It is therefore pointless to have spent another one naira on the refineries at that point.
A few months later, I had a conversation with a then-lawmaker on an entirely different matter. I mentioned that the National Assembly has failed by not crafting legislation that would criminalise and punish public office holders who foist wrong decisions on the country. The logic: a public office holder need not steal to be punished, wrong decisions should attract penalties for an office holder who opts for the worst of all options when there are less injurious ones.
These established premises speak to the ongoing nauseating efforts at revisionism by those who wrecked the Nigerian National Petroleum Company Limited (NNPCL) and its previous iteration, the Nigerian National Petroleum Corporation (NNPC). Notably, this campaign to rewrite history is traceable to Engineer Mele Kolo Kyari, the disgraced immediate past Chief Executive Officer of NNPCL and his hirelings. They have suffocated the news and the public opinion space with even more lies than they spun while in office.
The Saint Kyari campaign is anchored on convincing Nigerians that the Port Harcourt, Warri and Kaduna Refineries were fully functional when he was booted out of office. So brazen is the campaign that one of its talking heads challenged the group chief executive officer (GCEO), Engr. Bayo Ojulari, to “inform Nigerians categorically what happened to the functioning refineries he inherited from his predecessor, Engr. Mele Kyari.” The effrontery.
We have not forgotten so soon the charade that followed the baffling claim that Nigeria has spent $2.8 billion on the repair of the refineries, while they are not churning out even a single litre of refined product among them. Saint Kyari and his goons played all manner of tricks, all of which embarrassed President Bola Tinubu, who had counted on ticking off the return to productivity of the refineries as part of his achievements, only to realise that he was deceived into celebrating phantoms. Tragic.
Lest we forget, 200 trucks were arranged as props in a well-directed video clip to celebrate the re-streaming of the Port Harcourt Refinery. The disappointment. Nigerians were to learn from several reports that the Port Harcourt refinery was not producing and was instead using old, stored petroleum products to load trucks. Worse still, the Kyari crew was passing off sanction-tainted Russian-sourced crude oil refined in Malta as locally refined products. More insult was piled on the assault on our collective sensibility with the lies that the Port Harcourt Refinery exported semi-finished products. Brazen.
Meanwhile, Kyari and his hirelings called those who pointed out or protested these glaring scams all manner of names. They hid behind industry technicalities and jargon to create the impression that those of us who knew Nigerians were being robbed did not understand what we were saying. The point remains that a $2.8 billion investment can potentially build a refinery with a capacity of around 100,000 barrels per day (bpd). Of course, the actual capacity of such a refinery will depend on various factors, including the complexity of the refinery, the technology used, and the location. That is the amount that Kyari’s regime at the NNPCL took and did not give Nigerians refined products.
Fast forward to Kyari’s sack and the appointment of Engineer Bayo Ojulari, who has demonstrated that things can indeed be done differently. Kyari’s exit was expectedly followed by the Economic and Financial Crimes Commission (EFCC) going after him and his associates. The extent of the theft is better understood against the backdrop of N80 billion being found in the bank account of one of his associates. They went on the run.
Perhaps because the EFCC was biding its time on securing international warrants for the arrests of these characters on the lam, they have become emboldened. They have decided to fight back and rewrite the story of their participation in the greatest fraud against Nigerians. Engineer Ojulari’s renewed mindset, which is entrenching a semblance of the transparency Nigerians demand, became their natural target. The demons that once roamed around the corporation came out with malevolence. They started spinning stories of corruption to tarnish the incumbent who refused to hide their crimes. The objective: bring Ojulari down. But alas, he is winning the war as it stands.
His innocence is proven, and it is glaring that those who want him out are mere charlatans who can no longer ply their corrupt wares because of the impact of the new reforms. Corruption in the NNPCL is in its final throes. The fake news being unleashed against the incumbent leadership is akin to corruption’s last kicks as reforms in the sector strangulate it and its practitioners. The reforms must take place in the NNPCL, whether the industry demons like it or not.
As a parting shot, Kyari and his associates would do well to prepare their defence. In addition to accounting for the $2.8 billion they laundered in the name of repairing the moribund refineries, they must also answer for the poor decision to fix that which is irretrievably broken. Awarding contracts for Turn Around Maintenance of 59-year-old refineries that a right-thinking person had suggested should be demolished almost twenty years ago, when they were only 30 years old, is criminal. Trying to deceive Nigerians that the fake repairs worked is treason.
Olasanmi is a public affairs analyst writing from Lagos.
GRANDIS 5STAR LUXURY APARTMENT & SUITES SET TO REDEFINE LIVING IN VICTORIA ISLAND
Set to Rise elegantly against the Lagos skyline, is the Grandis 5Star Luxury Apartment & Suites. According to Adejuwon Ademola, The General Manager of the Development company, it is more than just a residential building
“it’s a lifestyle statement. Standing 17 floors high in the heart of Victoria Island, this revolutionary masterpiece of modern architecture will offer a panoramic 360° view of Eko Atlantic, Victoria Island, and Ikoyi, transforming every apartment into an exclusive penthouse experience for the world’s most discerning elite.”
Developed by Dumarco Construction Limited, a globally acclaimed company with decades of delivering complex, high-value projects in the highly regulated petroleum, oil, and gas industries, Grandis 5Star brings unmatched international safety standards, uncompromising quality, and timeless elegance into Nigeria’s luxury property market.
> “When you live in Grandis, you’re not just buying a home—you’re investing in peace of mind, world-class safety, and an effortless luxury experience that will remain pristine for decades,” says Adejuwon A. Ademola, General Manager of Dumarco Construction Limited.
The Gold Standard in Safety and Quality
Dumarco’s roots in the oil and gas sector mean the company operates to some of the strictest safety protocols in the world. Every stage—from conceptualization, design, construction, to long-term maintenance—follows internationally accepted procedures and quality assurance measures. Cutting corners is simply not in Dumarco’s vocabulary.
> “In the oil and gas industry, there’s no room for compromise. We’ve brought that same discipline and zero-tolerance for mediocrity into property development,” says Ademola. “That’s why Grandis will be one of the safest and most enduring residential developments in Nigeria.”
To ensure transparency and prevent (project complacency), Dumarco deliberately separates the developer, contractor, and consultant roles, engaging only the most competent professionals in each respective field. Dumarco’s project team includes globally recognized contractors such as Julius Berger, Cappa & D’Alberto, and Elalan, Migliore Construczione & Tecniche (MC&T) and their partners VENCO IMTIAZ CONTRACTING COMPANY (VICC) based in Dubai, UAE, Business Contracting Limited, alongside leading consultants like Morgan Omanitan & Abe, LAMBERT, and James Cubitt.
Grandis – Investments, appreciation, returns and profitability
Our selection process for the location of the project alone was pains-taking and completely thorough scientific process. Top professional companies were employed to conduct a scientific data acquisition and analytical survey of the entire Victoria Island, Ikoyi, Lekki and Eko Atlantic before a project site is selected. Analyzing and acquiring areas developmental charts and trends, studying and gathering historical and present sale prices, rental charge and occupancy rates over a 50 year period from every individual street before the selection of the location of any of our developments especially true for the Grandis Project
He adds,
“Our clients and residents can be rest assured that the location of Grandis has been scientifically proven through all existing data to provide our clients with a 100% occupancy rate, highest developmental location, highest rental income and investment returns. ”
The Grandis Experience
Located minutes away from international corporate headquarters, embassies, and landmarks such as Eko Hotel, Radisson Blu, and the Radisson Red, Grandis offers unmatched convenience for professionals, diplomats, and high-net-worth individuals. Every residence is designed for both indulgence and efficiency, with high-grade finishes, smart-home systems, and private amenities that ensure seamless living.
From sunrise over the Atlantic to the glittering Lagos night skyline, residents will enjoy uninterrupted luxury, supported by discreet and highly trained staff, advanced security systems, and a design that prioritizes comfort and privacy.
> “We designed Grandis for people who want everything—security, elegance, convenience, and the assurance that their home will look as spectacular in 20 years as it does on day one,” Ademola notes.
A Legacy That Lasts
With its combination of visionary architecture, peerless safety, and meticulous maintenance planning, Grandis is built to remain iconic for generations. Thanks to Dumarco’s meticulous approach, the building’s service charges are expected to remain low while its value and appeal continue to appreciate over time.
In a market often marred by shortcuts and substandard practices, Mr Ademola says
Grandis stands as a beacon of what luxury living should be—safe, spectacular, and built to last.
“Grandis 5Star Luxury Apartment & Suites — Where safety meets sophistication, and every detail is designed for a life well-lived.”
He added
Website -www.dumarcoltd.com
Project website – www.26idowutaylor.com
Email [email protected]
Tel / WhatsApp +234 9077777883
GM – Adejuwon A. Ademola
celebrity radar - gossips
Nationwide Talent, One Broadcaster: Tinubu Picks Pedro, Bello, Din, Mohammed to Lead NTA
-
society5 months agoRamadan Relief: Matawalle Distributes Over ₦1 Billion to Support 2.5 Million Zamfara Residents
-
Politics2 months agoNigeria Is Not His Estate: Wike’s 2,000‑Hectare Scandal Must Shake Us Awake
-
society4 months agoBroken Promises and Broken Backs: The ₦70,000 Minimum Wage Law and the Betrayal of Nigerian Workers
-
society3 months agoOGUN INVESTS OVER ₦2.25 BILLION TO BOOST AQUACULTURE
You must be logged in to post a comment Login