In recent years, Nigeria has faced mounting economic challenges that have pushed millions of its citizens to the brink of financial despair.
The compounding effects of global economic pressures, reforms, and systemic issues within Nigeria’s economic structure have culminated in hardship for the citizens. As the country struggles to find its footing, the impact on every Nigerian has been immense and far-reaching.
One of the reforms embarked upon by the current administration was the removal of fuel subsidies, a move commended by the World Bank and the International Monetary Fund (IMF). Prior to this time, the Nigerian government not only subsidised fuel but also did the same in other sectors, namely education, health, and electricity. While noble in intent, these subsidies have strained Nigeria’s public expenditures.
The Managing Director of NNPC Limited, Mele Kyari, noted that petrol consumption had increased to over 103 million litres daily, with at least 58 million litres being smuggled out of the country. This means that smugglers and other West African countries benefited more from the fuel subsidy than Nigerians, hence the decision to remove it.
Like many developing countries, Nigeria’s cost of living is heavily linked to energy prices. Consequently, this subsidy removal quickly increased transportation, electricity, and food prices.
Inflation and Economic Challenges
As of April 2024, Nigeria’s inflation rate reached historic levels, soaring to 33.69%. This economic crisis has been exacerbated by the dwindling value of the country’s currency, with soaring food prices being a major driver. However, there may be a glimmer of hope on the horizon. Recent projections from PricewaterhouseCoopers (PwC) predict an easing of inflation by year-end, with a forecasted decline to 29.5%.
To fight inflation, the Central Bank of Nigeria (CBN) raised interest rates. In simpler terms, when interest rates rise, anyone or entity lending money will charge more interest. The policy was implemented to make borrowing more expensive, encourage savings, slow down consumer spending and reduce inflationary pressures in the economy. However, higher interest rates mean Nigerians have less disposable income and must cut back on spending; this affects not only consumers but also businesses, which cut back on equipment or employees, thus slowing productivity in the country.
Remittances and Their Role
With decreased productivity, young, middle-class, and highly skilled Nigerians leave the country to seek better opportunities abroad.
However, this migration is not without its positives, one of which is that it has led to the influx of remittances. Remittances refer to money transfers from Nigerians abroad to their families or individuals within the country, which has helped bolster Nigeria’s foreign exchange market amidst currency devaluation.
With a population of 224 million and an extensive international diaspora, Nigeria has one of the world’s largest remittance markets. According to the World Bank, Nigeria received $19.5 billion in remittances during 2023, representing 35% of the transfer to sub-Saharan Africa.
In the first quarter of 2024, the country recorded $282.61 million as total direct foreign exchange remittances, a significant portion of which can be attributed to the efficient services provided by the United Bank of Africa (UBA).
UBA’s Remittance Services
The United Bank of Africa (UBA) has been a strong player in the remittance segment. They have partnered with top international money transfer operators and created an Africa money transfer service to ensure customers can conveniently send and receive funds worldwide.
With their remittance services, customers can receive money directly to their UBA account or collect and send cash at any UBA branch nationwide. They have partnerships with Western Union, MoneyGram, WorldRemit, Ria Money Transfer, ACE Money Transfer, and many more.
UBA also developed its remittance flagship product, AfriCash, to make transfers easier for its customers. This transfer service allows account and non-account holders to receive money from all African UBA locations.
UBA’s Role in Economic Stability
A country where productivity slows is one moving towards chaos. As they say, “When economies crash, it happens slowly, then all of a sudden, it collapses.” This is why financial institutions are tasked with quickly arresting this downward trend by providing facilities to aid these businesses. One of the financial institutions demonstrating significant resilience in these dire times is the United Bank of Africa (UBA), steadfast in its strategic intent of always prioritising its customers and Nigerians.
UBA, in its own unique and innovative way, is cushioning the effect of this financial meltdown and reforms on its customers, putting smiles on their faces in the process through initiatives like the UBA Supersavers draw. This initiative has provided financial relief as well as brought joy and hope to many, as proof of UBA’s commitment to the well-being of its customers.
The UBA SuperSavers and Legacy Draw
The UBA SuperSavers draw is not just a financial incentive but a testament to UBA’s commitment to promoting a savings culture among Nigerians. For customers to qualify, they must open and save at least ₦5,000 to participate in their UBA Savings Account draw.
Despite the economic turmoil, UBA Supersavers Draw continues to create millionaires and provide educational grants, rents, scholarship grants, and shopping vouchers, encouraging a responsible and sustainable approach to personal finance.
UBA’s Group Head, Retail & Digital Banking, Shamsideen Fashola, perfectly captured the goal of supersavers when he said, “Our customers are at the heart of everything we do, which is why, amid the current financial terrain, high cost of living, and reduced income, we will keep rewarding them every month. The Super Savers Draw is not just a time to reward our savers; it’s a celebration of our strong bond with you.”
“The Super Savers Draw is just one of the ways we are making and innovating our products to meet the changing needs of our customers. At UBA, we are always exploring new means to bring value and make banking more rewarding to those that choose us”
As UBA marks its 75th anniversary, they are launching their biggest celebration yet: the UBA Legacy Promo. The UBA Legacy Promo, set to run for six months starting July 2024, marks a significant milestone in the bank’s 75th anniversary celebrations. This campaign will distribute over N200 million in cash prizes and other rewards to UBA’s diverse customer base.
Open to Bumper, Savings, Kiddies & Teens, and NextGen account holders, the promo promises to reward customer loyalty on an unprecedented scale. A total of 300 lucky customers stand to win substantial cash prizes: 75 will receive the grand prize of N1 million each, another 75 will win N500,000 each, 75 more will claim N250,000 each, 75 Kiddies, Teens, and NextGen customers will receive N200,000 in scholarship rewards and N180,000 in pocket money rewards respectively, just as many more customers will win N10,000 monthly cash prizes and a final group of 75 will each take home N100,000.
Speaking about the initiative, UBA’s Group Head, Marketing and Corporate Communications, Alero Ladipo, stated, “This promo is our way of saying thank you to the customers who have been with us through the decades. It’s not just about the prizes; it’s about celebrating the legacy of trust and partnership we’ve built together. We’re excited to give back to those who have made UBA what it is today”
UBA’s Global Presence and Recognition
Headquartered in Lagos, UBA has subsidiaries in 20 African countries and offices in London, Paris, and New York. UBA’s dedication to its people, who are the customers, is unmatched as it seeks to put smiles on their faces, from raffle draws to excellent premium services.
It is no wonder the bank won the highly coveted Bank of the Year Africa 2023 at The Bankers Awards 2023, organised by The Banker Magazine – a publication of the Financial Times of London, the world’s leading business newspaper. This recognition is a testament to UBA’s unwavering commitment to its customers, making them feel valued and appreciated.