By Chinenye Anuforo
Nigeria’s consumers are calling for greater innovation from money transfer providers to support their remittance needs, according to Western Union’s inaugural Global Money Transfer Index.
Eighty-nine percent of consumers who receive remittances in Nigeria want services integrated into a ‘super app’ with which they can manage all personal finance needs. Seventy-nine percent want platforms with local-language capabilities.
The Global Money Transfer Index asks consumers how, when and why they use international money transfer capabilities today, as well as their expectations for tomorrow. The results bolster Western Union’s ‘Evolve 25’ strategy to combine high-value, accessible retail and digital financial services for all.
“Nigeria’s Government and Central Bank’s efforts in developing the necessary infrastructure has boosted connectivity and inclusivity.
As a result, consumers have become attuned to the opportunities and flexibility innovations can bring,” said Mohamed Touhami El Ouazzani, Regional Vice President, Africa at Western Union.
“We expect this to continue, underscored by a strong emphasis on speed, convenience and reliability.”
The Index reflects Nigeria’s fast-paced economy, as the country’s government continues to implement its National Digital Economy Policy and Strategy. Evidence of its influence may be why 61% of consumers who receive money prefer using digital methods from start-to-end today. Speed of transfer here is key and ranks as the most important factor considered by consumers when deciding which provider to select for collecting transfers. When asked about the future, the balance starts to shift, with more receivers (53%) desiring choice between receiving money in-person or digitally.
In 2022, Nigeria’s inbound remittance flows were estimated to be $21 billion, making the nation the biggest receiving market in Africa, and ninth largest globally. At present, 63% of consumers in the country receive money at least once a month. As consumers further adapt to higher global cost of living, 85% expect to receive more money within the next 12 months.
Nigeria’s senders also agree they will need to transfer more in the 12 months ahead (82%). However, they also face a cost of living dichotomy: Three-quarters (75%) say global economic condition mean they cannot transfer as much as they did previously.
“Economic headwinds have impacted all consumers globally, and remittances play an integral role in ensuring people and their communities can keep moving forward, leveraging opportunities,” said Ouazzani. “Now more than ever, it is incumbent on us as money transfer providers to be agile, supporting consumers as their requirements evolve in order to manage their daily financial needs.”