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
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 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.
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.
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 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.
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 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.
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.
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 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.
7 Ways to pay for your higher education
Hoping to gain more knowledge and certifications for career advancement and personal developments, these are ways to get funds.
Obtaining higher learning has been an ambition for so many people. Higher education can lead to many benefits, including a prosperous career and financial security. In the 21st century, education plays an even more significant role in other aspects of our life. Attaining a higher education can increase your opportunities and improve your overall quality of life.
There are several reasons that can hinder you from attaining higher education. One of them is a lack of financial support. Lack of financial support has been an impediment for some people in acquiring higher learning. The unavailability of finance is considered one of the biggest hurdles in education as some of the courses and the schools are quite expensive.
However, for anyone determined to gain more knowledge and certifications for career advancement and personal developments, there are ways to get funded. Here are ways to go about it.
Be on the sentinel for scholarship openings
There is still a way to make your dream come through, especially for anyone that has no financial means to further their education. Getting a scholarship is the best way to go about it. Studies show that there are over 500 Nigeria scholarship opportunities for undergraduates, Masters, and PhD for students in Nigeria to study at home or abroad. Though scholarship as a form of financial aid is awarded to only eligible students and applicants. There are various types of scholarships and ways in which they are awarded by various organizations and individuals. Some of the common types of scholarships are merited-based scholarships, sports scholarships, and specific scholarships.
Go for Student Loan
Going for a student loan is another way to pay for your tuition. it is designed to aid students to pay for their education. This loan differs from other kinds of loans in the sense that the interest rate is relatively lower, and the repayment schedule is much more flexible. Funding education should not be a colossal task and students should have a range of options available for accessing quick loans in Nigeria. The first thing to do is to be on the lookout for platforms granting loans for school fees and ensure that you meet all their requirements. Some of the banks are Access Bank student loan, GTbank student loan, Firstbank Firstedu loan, and Federal Government Education loan,
Set up a Crowdfunding Account
Crowdfunding is another way to seek financial support. You set a crowdfunding account up, then seek help from your family and friends to support you. You can also start a campaign to raise donations on your account. In Nigeria education is the easiest way for someone within the middle and lower class to have a better life and although the cost of education is high, especially for someone that wants to move to abroad to study.
With crowdfunding, friends, family members, church members, and strangers could support with donations to go to school. The common crowdfunding platforms include GoFundMe, IndieGoGo, Donate ng, MicroVentures, CircleUp, and NaijaFund.
Make use of Employer Training Opportunities
The success of any business, whether in the private or public sectors, lies mainly in the quality of its human resources. research confirmed that training of manpower is a major prerequisite for any organization that wants to achieve maximum productivity through the efficient and effective performance of the employee. In some organizations, there are some opportunities open to staff who wish to further their studies either at masters or postgraduate level but do not have money to do that. Organizations see this as the best way of upskilling their workers.
They invest in their education too, after which they come and work for them again. However, if you are opportune to be in such an organization it is imperative that you make use of the opportunity.
Combining your Work and Education
While you study, you can also work by taking up part-time jobs and internships to save up funds for your education. Studying while you work is one of the most encouraging sources of financial aid, as you do not have to struggle to get scholarships or grants and do not have to pay back student loans. When looking for a job in school, you should try to find a job that is flexible and does not require you to work late hours, and above all offers a decent wage.
Also, It is an added advantage if your job allows you to learn about a field you are interested in or studying in school. Some of the jobs you can do while in school include Appling for a paid internship in your field, drive for Uber or bolt, Tutor in a subject you excel in, and apply for a Freelancing job.
Start a Business
You can start a business while you study, this can be done online to enable you to study will or physically. You can start small and be very economical about the business. Remember that the aim is to make money as fast as possible to finance your studies. So, therefore, try to start a business that will bring in quick cash for you in the short term. some of the business to go into are Web Designer, Graphic Designer, Freelance Writer, and Online Advertising, Specialist
Save Towards Paying for your Tuition
If you have a steady 8 -5 job that pays you every month, you can plan to save for your higher education. A budget is another way to enable you to stick to your savings goal. You can decide to save a specific amount of money every month for a particular period.
In conclusion, gaining higher learning is very important especially for anyone that is aiming for a higher position, self-development, and career advancement. Though funding can be a major barrier to actualizing that goal, with the funding options listed above that aim can be achievable.
How interest rates impact your wallet
It is imperative to understand how interest rates impact our wallets.
In the financial world, the interest rate plays a huge role in any financial transaction. Interest rate is the proportion of money a borrower pays for an asset or any form of debt. It is the return or interest paid to the financial service provider.
In Nigeria, interest rates are by financial institutions and the Monetary Policy Committee (MPC) assigned by the federal government to keep interest rates at a moderate and stable price level for proper economic growth.
When it comes to interest rates, either increasing rates or declining rates, the economy gets influenced in many ways. Rates of interest ascertain economic performance. Lower interest rates are a sign of a slow or poor economy as interest rates are changed to enable cash flow.
Higher interest rates are, in turn, viewed as an indicator of a healthy economy with favorable cash flow. Interest rates can slow down or improve an economy. It is necessary to examine the various aspects of our financial life influenced in different rate scenarios to understand how interest rates impact our wallets;
Some ways interest rate can impact your finance are:
Many factors influence how an individual saves, but a decline in interest rates tends to discourage saving because the reward is affected. A higher interest rate makes it attractive to save money as it enhances increased return. Thus, a change in interest rates influences an individual saving, which is an essential part of financial planning.
How you will be affected by a change in interest rate depends on if you are inclined to borrowing or investing. Because the interest placed on loans will be less, lower interest rates offer more opportunities to borrow or acquire cheaper loans, which means it favours the borrowers. People are discouraged from getting loans to invest in their businesses because a higher interest rate translates to a higher borrowing cost.
Lower interest rates allow companies to acquire less costly loans that impact the price of the goods they sell. As far as expenses are concerned, people will have more funds to spend on goods and services.
Interest rates can have an impact on the income people earn by affecting economic growth. Slow economic growth will influence the level of income earned. With substantially less income, people will have less cash to survive on.
When setting financial goals and making meaningful decisions regarding one’s finances, understanding the impact interest rates have on one’s life can help.
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