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Financial Literacy

7 Ways to Transfer Money Abroad from Nigeria

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Most Nigerians are used to receiving money from abroad. We all have loved ones, friends or business partners who send money to us for different reasons. The World Bank had in fact projected that up to $22 billion will flow into Nigeria in 2017 through Diaspora remittances.

In the same vein, there are people in this country who need to send money to friends or relatives living abroad.

The process of sending money abroad is known as Outbound Money Transfer (OMT). OMT is a person to person international money transfer from Nigeria to countries around the world.

In recent times the volume of outbound money transfers in Nigeria is increasing thanks in most to technology which has caused a rapid increase in local and international transactions.
Listed below are 7 ways through which money can be transferred abroad from Nigeria;

Western Union Money Transfer

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Western Union remains a credible and popular choice for sending Money from Nigeria to other countries. There are presently 5,000 Western Union outlets in the country, working in partnership with commercial banks and Microfinance banks.

Requirements for sending payments:

  • Sender’s name, phone number and address.
  • The receiver’s name and country.
  • Amount in Naira.
  • Acceptable means of identification (any one of International Passport, Driver’s license, Permanent Voters card, National Identity Card, BVN).
  • Account holder with bank
  • Test question and answer where applicable
  • A maximum limit of USD1,000 or Naira equivalent per customer per quarter, as stipulated by the Central Bank of Nigeria.
  • Your application will have to be accompanied with information regarding the receiver’s location and possibly his/her bank details as well as a verifiable means of identification as well as the cash to be transferred.
  • The outlet will assist in converting the Naira sum into the corresponding destination currency at prevailing Forex exchange rates. In addition, the sender will bear the costs of sending the money abroad i.e the costs of the transaction. This cost will also include a surcharge for Value Added Tax.

Note: You cannot send funds through Western union as a company. The CBN policy states that the outbound service is strictly on “a person to person basis”. No business transactions are allowed.

Money Gram

Money Gram is one of the foremost global payment platforms that is present in over 200 nations in the world and operates from over 300,000 locations. The new CBN directive for outbound money transactions allows Money Gram partner with several Nigerian banks, to enable the sending of money from Nigeria to other countries.
The process of transferring money through Money Gram is similar to that of Western Union.

Domiciliary Account

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A domiciliary account ‘dom account’ is an account that permits the operator to hold money in other currencies, other than the Naira. It is mainly used by Nigerian businesses and individuals for the transfer of funds direct to foreign receiving accounts for the settlement of business transactions and other purposes.

A domiciliary account is particularly useful when large sums of money are to be transferred abroad.

Opening a Domiciliary account is similar to that of a current or savings account and requires the following; completed account opening form, valid means of identification, BVN, two references, recent utility bill and passport photograph.

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At its most basic, sending money abroad using one’s domiciliary account will involve presenting the recipient’s bank details including the account name, account number, name of the bank and branch name, Swift Code, Routing Number, as well as the sum of the money to be transferred, which will be converted into the destination currency at prevailing forex exchange rates..

After these procedures have been observed, the transaction is consummated. The sender will receive an SMS notification, usually within a 48-72 hour period, informing that the originating (sender’s) account has been debited and the recipient’s account has been credited.

Paypal

PayPal is one of the largest global online payment platforms employed by merchants and individuals for the payment of goods and services across the world. It is presently used by close to 100 million people on a regular basis. For years, Paypal had shut Nigeria out due to our notoriety for internet-related fraud, but lifted these restrictions as fraud techniques improved as well as Nigeria’s notion as the largest economy in Africa.

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Opening a Paypal account is very simple; all you need do is go to the website – www.paypal.com/ng and sign up.

Note: if for example you transfer say $20 to anyone abroad, you will be debited in Naira at the applicable exchange rate and alerted by your local bank.

Skrill

Skrill is an e-commerce business that allows payments and money transfers to be made through the internet, with a focus on low-cost international money transfers.
In Nigeria, Skrill offers an alternative means is another means of transferring money abroad. It works just like Paypal, allowing you to send and receive funds.
With Skrill, you can send money to an email address. If the recipient has a Skrill account, the money is automatically credited to their account. Otherwise, the recipient is notified to open a Skrill account to receive the money you sent. The money is returned to you if the receiver does not accept the transfer within 14 days.
www.skrill.com

Note: When you transfer money through Skrill, the money is received in the currency of the recipient’s account. Skrill offers accounts in over 40 of the leading currencies of the world.

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Payoneer

Payoneer is a financial services company that provides online money transfer and digital payment services present in over 200 countries worldwide. Payoneer account holders can send and receive funds into their bank account, Payoneer e-wallet, or onto a re-loadable prepaid MasterCard debit card that can be used online or at points-of-sale.

In Nigeria, to start using Payoneer services, you will need a Payoneer Mastercard, which is a universal credit card for paying and buying online. This card is free of charge.

Steps to apply for Payoneer Mastercard in Nigeria

Log onto www.payoneer.com
Fill your details – full name, address and your preferred means of identification
Set password, secret question and answer, your preferred means of identification (drivers license or international passport) and provide the details of the ID as required.
Click the ORDER button.

Note: The card will be sent to the shipping address you filled in the application process within a few weeks or months.

Neteller

Neteller is one of the world’s largest independent money transfer businesses used in over 200 countries, Nigeria inclusive. It is an electronic currency for online payments. Money in a Neteller account can be used to pay merchants, send to customers or pay at any retailer that accepts Master card using the Neteller prepaid card that is part of the account.

To get the Neteller card you will need to visit their website at www.neteller.com and sign up.

If you know additional means of transferring money abroad from Nigeria, please share in the comments below.

1 Comment

1 Comment

  1. Neil Harvey

    March 6, 2020 at 12:20 pm

    Open a First Kudi account via the app and get the Verve payent card after KYC
    You can now convert paid-in Naira into Bitcoin or Gemini USD stablecoin
    Bitcoin in your mobile Kudi wallet wherever you go in the world
    Open a Coinbase account / or Gemini exchange account
    Convert Bitcoin / Gemini USD stablecoin into your local currency
    Pay it into the reelvant bank account for spending
    Spend any extra left on the First Kudi app with your Verve card when you return home
    >>
    The only drawbank is that the Verve card cannot be used outside Africa/Nigeria as far as I know.

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Personal Finance

10 Business mistakes to avoid post-COVID-19

With the emergence of lockdown and social distancing, businesses are now incorporating innovative working arrangements.

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The "new normal" in business and economy

Not only did COVID-19 spread globally, it also stopped all activities in almost every sphere of human endeavour.

Apart from the fact that the pandemic affected many lives, it also brought about a great disruption in the business sector.

SMEs and large enterprises have experienced various forms of contractions, and this has led to business closure for some. Many companies thrived on an existing modus operandi and were not prepared for the impacts of the pandemic. However, with the emergence of lockdown and social distancing, businesses are now incorporating innovative working arrangements like remote working, online services as well as regular variation in shifts.

READ MORE: 3 major ways COVID-19 will affect Banks’ 2020 profits

While the pandemic is still being brought under control, a new order of business operations has been established and going forward, businesses must carefully plan and think out ways to thrive.

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While planning on how to navigate the whole situation carefully, it is advisable to take note of certain mistakes that could hinder their progress.

This article provides for you ten (10) mistakes you should avoid making in your business post-COVID-19.

READ ALSO: Rewane outlines sectors to drive economy in 2020 

1. Not having an online presence

The pandemic brought a halt to movement and large gatherings, and this stopped many businesses that existed mainly on physical interactions to stop and pack up. Business owners must learn that it is a huge travesty to plan their strategy without having an online presence; in fact, they would be missing a lot. They must strategically think of going digital and maximize the opportunities that come from interacting with over 4.5 billion people.

2. Limiting the business vision

The pandemic has pushed heads of enterprises to a position of mere survival. Plans and decisions are being made just for the moment without considering the long term existence of the business. Every business started off with a mission, a set of objectives to achieve and needs to meet. Regardless of the economic transition, it is important to hold those goals in mind while constantly seeking ways to attain them.

3. Poor marketing strategy

With the emphasis placed on marketing, especially on digital marketing lately, and the importance it holds for any business, it is not only a mistake for an establishment to limit its marketing strategies but a business taboo as well. Many products and services have emerged during the pandemic which poses competition to already existing providers. It is a necessity to brush up the marketing game in order to gain relevance in the business sector and source for more leads as well.

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4. Building on hope

Optimism is good, but planning is better. We are moving into an era of intense technological integration which has influenced various business operations. E-commerce, as well as remote working, has become a norm and businesses will have to move with the flow. There are quite a number of entrepreneurs who are waiting for the tides to calm so they can paddle their boats. The trick is in planning while waiting. It is okay to place one’s bet on hope but mapping out plans for sustenance is more advantageous.

5. Unplanned redundancy

It will seem like the way out for most enterprises to lay off some of their workers in order to survive the disastrous financial situation they may experience. However, one key factor in adopting this strategy is to carefully examine the effect it might have on the growth of the business. Over time, there might be a need to hire new workers which will incur a cost in recruiting and training new employees. Low man-power influences productivity. As such, measures must be put in place to make up for the labour pool that will be cut off.

6. Pouring new wine in old wineskins

Innovation has been on the rise on account of the pandemic. New commercial and industrial techniques are sprouting paving the way for longevity. Holding onto old and familiar methods that are no longer effective could constitute a big mistake for any business. Entrepreneurs and managers have to embrace the reality that comes with post-COVID-19 with a sense of focus.

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7. Ill-suited rigidity

Flexibility is one of the keys to thriving after the transition. Understand that the pandemic has affected the world economically and otherwise. Hence, it is crucial to adapt to the changes by inculcating new plans, being versatile and multifaceted rather than being inappropriately unbending.

8. Neglecting creativity

Neglecting the power of creativity is a costly mistake every business should avoid making. The post-COVID-19 period will be a salient time to be creative and innovative. Establishments should be on the lookout for how to meet the needs of consumers, ways to improve their services in order to stay in vogue. Teachers are resorting to virtual classrooms; traders are integrating e-commerce; companies are investing in work-from-home technology. It is all about creativity.

READ ALSO: The “new normal” in business and economy

9. Ineffective communication

With much regards given to remote work and other emerging working arrangements, it is important to devise means to ensure effective discharge of duties by members of any business. The ineffective flow of communication can retard the growth of businesses which is one of the mistakes to avert. When workers understand that it takes collective effort to ensure the continuity of the business, it becomes easy for them to efficiently invest their energy.

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10. Poor assessment

Disregarding the place of systematic evaluation of the performance of any enterprise is one of the business mistakes to avoid post-COVID-19. There should be a feasible assessment carried out to ascertain where the business stands in terms of labour force, expenditures, cash flow and returns on investment.

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Conclusively, there is no green light as to whether a post-COVID-19 will exist or not. However, as the virus lingers, each business owner must adjust to make sure they do not make the above-mentioned mistakes or other possible business mistakes that may not have been mentioned in this article.

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Financial Literacy

Five things to consider before securing a loan

It is important to consider these five tips before securing a loan.

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Financial security is when you know you do not have to worry about the basic needs of life. It also involves having the courage to comfortably withstand any emergency life throws your way.

The outbreak of COVID-19 was unexpected. Apart from the health implications it caused, the global economy has suffered greatly.

The outbreak of the virus resulted in job losses and business closure. The situation is so worse that even stable sources of income are no longer guaranteed.

As a result, many people have had to reduce their expenses, and the need to seek loans to enable sustainability or survival is on the rise.

While many may consider taking loans to meet their current needs, here are five (5) tips on what to consider before taking that step.

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1. The lender

With different financial institutions willing to offer loans, it is crucial to find the right lender. At a critical time, such as this, securing a loan can come at significant risk and cost. It is, therefore, essential to get it from a source that will provide acceptable terms. It could be from a friend, family, community fund or a microfinance bank. Ensure you secure the loan from a lender willing to give you the best possible conditions and a well laid out repayment plan.

2. Do Your Homework

Research is key. Do your homework and be well informed about it. Ensure you have a realistic means of repayment. Look at the viability of the loan and ensure that you have a realistic chance of paying back on its due date.

3. Work Out Your Payment Plan

Many focus on planning on how to spend a loan and determining how much they need to secure. While this is essential, it is equally important to plan on how you will repay a loan. It would be best if you decide whether you will be paying on a weekly or monthly basis. These factors will guide you in choosing a loan with favourable payment terms to avoid unplanned costs.

4. Credit History

Having a good sense of your credit history is also very important. Know your cash flow and be sure of your income and expenses. Know the precision in terms of what you can get and when you can get it, so as to draw up an excellent and reasonable payback strategy.

5. Terms and Conditions

Ensure you read the fine print and understand the various terms and conditions of a loan before signing any legally binding documents, including a personal loan agreement. In some instances, you may find it difficult to understand certain things regarding the loan you are about to secure. Try as much as possible to clarify all doubts before taking the final decision.

Financial strain may not be the sole purpose of taking a loan. However, whatever the reason may be, it is crucial to consider these five tips before securing one.

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Personal Finance

10 things to adopt in your business to adjust to the new normal

As scary as the thought might be, the new normal might last for a very long time.

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Nairametrics Financial literacy, invest intelligently, portfolio diversification, treasury bills, Your next of kin, or not?, Investing in uncertain times, Things to accomplish during COVID-19 lockdown

Towards the end of 2019, many businesses wrote their plans, strategies and goals for 2020 and were ready to dominate the market. However, the year did not start as many thought it would. The COVID-19 pandemic brought about new ways of doing things, which is now known as the ‘new normal’.

As scary as the thought might be, the new normal might last for a very long time. Therefore, businesses need to find a balance between what worked in the past and what needs to be done to adjust to the new normal. While some businesses were forced to shut down, many businesses had to change their strategy in order to adjust to the new normal.

Any business can survive the pandemic and adjust to the new normal just by pivoting to a new business strategy. As a business owner, you have to think about growth and look for methods you can adopt in your business to adjust to the new normal and remain relevant. Keep reading to discover ten (10) things you can adopt in your business to adjust to the new normal.

1. Accept the changes 

The first and most important thing to do for your business to adjust to the new normal is to accept the changes and embrace the new normal. Waiting for things to go back to normal before you continue your business is the wrong move because things might never go back to the way they were.

2. Think Technology 

Innovation and the use of technology in businesses have been on the rise, before the pandemic. Technology is the future of the business world. The latest trend since the pandemic started is to replace manpower with technology. With this, the business continues without endangering the lives of the employees.

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3. Change your business model

Reinvent your business, align your business strategies with society’s changing needs and develop a low-cost business model that would help you to stay in business while delivering your best.

4. Involve your employees

The business world has reached a level where you have to involve your employees in the decision-making process. This gives them a sense of responsibility and makes them more involved in the growth of the organisation. Involving your employees will help the business to adjust well and experience growth.

5. Focus on your customers 

Listen to your customers. Make an effort to meet their increasing demand and take advantage of their changing attitudes and behaviour. You can do this by conducting a survey and requesting feedback. This is the best time to conduct market research and get all the information you need. This way, you would know if you are on the right track.

6. Stay connected

Transitioning from the current state (Covid-19) to recovery state (Post Covid-19) requires staying connected to the outside world. The question; ‘what is working or not working for other businesses?’ should be asked as often as possible.

7. Adopt a mobile strategy

Since the beginning of the pandemic, the majority switched to remote working, which might have brought about a reduction or lack of communication for some businesses. Business owners should work on their communication system during this period by employing a mobile strategy to get employees up and running.

8. Focus on advertisement and marketing

To cut costs, many businesses are cutting their advertising and marketing budgets, so any business that focuses on advertising and marketing will get all the attention it needs now.

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9. Collaboration, flexibility and accountability

The best time for flexibility, collaboration and accountability in business is now. Adopting systems such as informal interactions and remote work would help build a flexible, accountable and better workforce. Not only will this make your employees happy, but it will also give your business the exposure it needs.

10. Risk management systems

Businesses should take advantage of this opportunity to set up a risk management system. The pandemic is enough enlightenment for businesses to know that they should put measures in place to identify, assess, monitor and mitigate the impact of risk on their business in future.

If your business has been affected by the pandemic, you can get back on your feet and begin to break new grounds. All you have to do is adjust your business to the new normal by thinking differently and being strategic in all dealings.

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