IN a recent publication by the United Nations titled, “Eight facts you don’t know about the money migrants send back home,” it was disclosed that the impact of the money sent home by individuals abroad is critical to improving lives, whilst reducing poverty.
Every year, thousands of people, especially in sub-Saharan African countries, emigrate out of their home country in search of improved living conditions due to the worsening experiences back home not limited to insecurity, poor working condition and salary structure vis-à-vis the minimum wage, devalued currency, dilapidated infrastructural facilities and social amenities, amongst many others.
The good news of an individual having a visa to travel abroad for a better life is usually received with excitement as family members and loved ones at home are filled with optimism that their lives will be better.
The UN recently stated that about one in nine people globally is supported by funds sent home by migrant workers noting that currently, about one billion people in the world (or one in seven) are involved with remittances, either by sending or receiving them. Around 800 million in the world (or one in nine people) are recipients of these flows of money sent by their family members who have migrated for work.
Gilbert F. Houngbo, President of the International Fund for Agricultural Development (IFAD), explained that “it is not about the money being sent home, it is about the impact on people’s lives.
“The small amounts of $200 or $300 that each migrant sends home make up about 60 percent of the family’s household income, and this makes an enormous difference in their lives and the communities in which they live.” With these, it is no surprise that the money sent home plays a critical role in helping millions out of poverty.
In Nigeria, the country’s premier financial services provider, First Bank of Nigeria Limited, has been at the forefront in promoting diaspora remittances in the country. With over 25 years of partnership with Western Union, the experience of the financial giant in pioneering remittance payout gives it the edge in the market.
The bank recently announced the expansion of its partnership base of International Money Transfer Organisations (IMTOs) to ensure Nigerians and residents easily receive money from their families and friends from close to over 200 countries across the world.
FirstBank had announced the expansion of its networks of International Money Transfer Operators (IMTOs) to over 12. The robust list includes; Western Union, MoneyGram, RIA, Transfast, WorldRemit, AWS Malta, Transfast, Wari, Smallworld, Sendwave, Fluttterwave, Funtech, Thunes, FirstApple and Venture Garden Group.
The bank’s expansive network of over 750 branch networks spread across the country puts Nigerians at an edge in receiving money from abroad regardless of where they may be.
Keen on ensuring more people and customers in all its business locations across Africa are not left out, the bank launched its wholly-owned remittance platform, First Global Transfer (FGT).
The FGT was created to promote the international transfer of funds across its subsidiaries in sub-Saharan Africa, namely, FBNBank DRC, FBNBank Ghana, FBNBank Gambia, FBNBank Guinea, FBNBank Sierra-Leone, FBNBank Senegal.
In the same vein, FirstBank customers can now leverage the ‘Auto creation of USD account.’ This happens when a transfer is sent from abroad to a beneficiary’s NGN account. The bank automatically opens a USD account for the beneficiary and credits the USD into the account. FirstBank consequently pays N5 for every Dollar received, whilst promoting diaspora remittance inflow into the country.
The bank played an active role in the ‘Naira 4 Dollar scheme’ spearheaded by the Central Bank of Nigeria. The initiative was aimed at rewarding customers with N5 for every dollar received through foreign remittances.
Reiterating the bank’s resolve in promoting diaspora remittances across the globe, the Deputy Managing Director, Mr Gbenga Shobo, said, “At FirstBank, expanding our network of International Money Transfer Operators is in recognition of the significant roles diaspora remittances play in driving economic growth such as helping recipients meet basic needs, fund cash and non-cash investments, finance education, foster new businesses and debt servicing.
“We are excited about these partnerships, as it is essential to ensure our customers are at an advantage to receive money from their loved ones and business associates, anywhere they are across the world.”
However, in recognition of its giant strides at promoting FX remittances into the country, FirstBank has won awards and recognitions like the “Fastest Growing Money Agent Award” in 2010; won MoneyGram’s “Highest Receiving Agent in Nigeria and the Most Compliant Agent in West Africa”; Recognised by MoneyGram in 2016 as the “First Agent in West Africa and second largest agent in Africa to process transactions that generated a revenue of $10 million on the MoneyGram platform, and promoting FX remittances into the country.
Similarly, FirstBank has been named “Most Valuable Bank Brand in Nigeria” six times in a row (2011-2016) by the globally renowned “The Banker Magazine” of the Financial Times Group; “Best Retail Bank in Nigeria” for seven consecutive years (2011-2017) by the Asian Banker International Excellence in Retail Financial Services Awards and “Best Bank in Nigeria” by Global Finance for 15 years.
These feats, recognition and pedigree put FirstBank in pole position in complementing the efforts by the United Nations in achieving at least seven of the 17 SDGs.
The UN’s Department of Economic and Social Affairs stated that when individuals send money back home, they contribute to several of the goals set in the 2030 Sustainable Development Agenda, particularly SDG 1, No Poverty; SDG 2, Zero Hunger; SDG 3, Good Health and Well-Being; SDG 4, Quality Education; SDG 6, Clean Water and Sanitation; SDG 8, Decent Work and Economic Growth; and SDG 10, Reduced Inequality.
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