WorldRemit, a digital cross-border payments business, has announced that its customers in Nigeria can now receive remittances in foreign currency (USD) through its cash pick up provider.
WorldRemit enables Nigerians in over 50 countries around the world to support their family and friends in Nigeria.
The efforts from the CBN and WorldRemit, show a collaborative approach to supporting remittance flows to Nigeria
READ: CBN expects $24bn annual diaspora remittances – Emefiele
In a bid to ensure increased liquidity in the foreign exchange market, CBN decided to allow international money transfers to be paid in foreign currency.
The bank explained that the new regulation is part of its efforts to liberalize, simplify and improve the receipt and administration of diaspora remittances to Nigeria.
Following the announcement of the Central Bank of Nigeria (CBN), WorldRemit moved to quickly adapt the new requirements, so that it is the first digital service to offer its customers worldwide the option of USD cash pickup in Nigeria.
READ: Foreign investment inflow into banking sector falls by 95% in Q2 2020
What they are saying
Commenting on the developement, Mr Gbenga Okejimi, Country Manager, Nigeria and Ghana, at WorldRemit submitted that: “We are very happy to announce that customers can continue to send money to Nigeria seamlessly using WorldRemit. We have added a new option to send USD for cash pick up to approximately 3,500 cash payment points around the country. This will make international payments more convenient for Nigerians during this holiday season, when we typically see an increase in transfers.”
Mr Okejimi further emphasized that WorldRemit customers can continue to send money transfers quickly and securely to Nigeria via multiple payout methods such as bank accounts, cash pick up and airtime top-up.
READ: Nigeria needs $3trillion in 30 years to reduce infrastructure deficit – Osinbajo
Considering that there are more than 15 million Nigerians living abroad, flow of remittances is very crucial as remittances bring much-needed cash directly to millions of families and are also one of the continent’s main sources of foreign currency.
The Economist noted that in 2018 officially recorded remittances were worth $46bn in sub-Saharan Africa, far more than foreign direct investment of $32bn that year.
READ: CBN injects fresh $51.8m into FX Markets
Recently, President Muhammadu Buhari (PMB) also confirmed the growing importance of remittances to the growth and development of Nigerian economy based on 2019 figures released by the World Bank.
PMB noted that “$25billion annual remittance by Nigerians in the diaspora was more than 80 per cent of the country’s annual budget and formed about six per cent of the Gross Domestic Product (GDP).”
Thus, the efforts from the CBN and WorldRemit, show a collaborative approach to supporting remittance flow to Nigeria.
READ: First Bank partners with WorldRemit for digital money transfers to Nigeria
What you should know
- Nairametrics recently reported that WorldRemit has partnered with The Nest to empower entrepreneurs in Nigeria, Kenya, Ghana, and Zimbabwe. According to the statement, the partnership is to build scalable business models across Africa via the WorldRemit Entrepreneurs Program.
- In its quest to go beyond digitalizing payment methods across the globe, strengthen its renewed commitment to creating opportunities, and facilitate development in Africa, WorldRemit, will now equip African entrepreneurs with effective skill sets and tools to build, innovate, and scale their businesses.
- Country Manager (Nigeria and Ghana), WorldRemit, Gbenga Okejimi, explained that the partnership came right in time for impact, as many small businesses had taken a hit in the course of the tumultuous year.
READ: WorldRemit partners Fidelity Bank for instant money transfers