• Wednesday, May 29, 2024
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BusinessDay

MoneyGram Nigeria set to open outbound money transfer

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Global money transfer firm, MoneyGram, plans to kick-start its outbound money transfer services from Nigeria to over 200 countries. There are indications this service will be live next week. This latest move by MoneyGram is aimed at alleviating the stress Nigerians face in sending funds abroad for family upkeep, schooling and other legally recognised developmental purposes. This will align Nigeria with the best-practice around the world, in line with the country’s standing as Africa’s largest economy.

Central Bank of Nigeria (CBN) recently licensed the three major money transfer organisations (MTOs) in Nigeria to engage in outbound service. MoneyGram thus becomes the second operator after Western Union to operate outbound money transfer services from Nigeria.

The MoneyGram outbound service, which will re-inforce the well-known MoneyGram “Receive and Send money in 10 minutes” brand promise, is expected to lead to greater convenience and ease as customers will be able to access in the majority of MG location, through their partner banks. MoneyGram is offered through respected financial institutions in Nigeria, such as Ecobank, UBA, First Bank, Access Bank, Sterling Bank, Fidelity Bank, Skye Bank, Keystone Bank, Enterprise Bank, Mainstreet Bank, Diamond Bank, and Wema Bank, among others.

A leading industry watcher noted that with over 10 million migrants resident in Nigeria and financial inclusion still below 50 percent, the move by the CBN to grant licence to MTOs to engage in outbound fund transfer service from the country was in the right direction.

He noted: “The CBN’s policy to allow outbound traffic by the key MTOs is good. It moves a huge chunk of transfers from this country into the formal sector, allowing the CBN to better track and report this traffic. In addition, the Federal Government will gain from VAT revenue it would have otherwise lost. In addition, customers no longer have to risk losing money by using shady characters for transfers.”