There are two things to consider when you send money to another country: Transfer fees and exchange rates. With Small World, your first digital transfer is fee-free and we take care of the exchange rates, making your life easier.Why is this important now? Well, if you send money to Nigeria there’s been a recent change that will impact the currency that your recipient picks up.
In this blog we’ll explain the change, what it means for you and what we’re doing to make this a smooth change.
What’s actually happened?
The Central Bank of Nigeria (CBN) has announced that anyone sending money back to Nigeria can now do so in US Dollars, rather than Naira. The move from the CBN was done to support the existing remittance inflow, which is estimated at around $24bn.sNigeria is keen to reduce its dependence on external borrowing and mitigate the impact of COVID-19.
Nairametrics explains what the shift means for those sending and receiving money:
“This new directive means when Nigerians living in diaspora transfer money to loved ones in the country, they can in turn withdraw the money in dollar cash. Nigerians who receive foreign transfers can withdraw it in US Dollars.”
In other words, the amount you send in US Dollars to Nigeria to friends, family and loved ones is the exact amount that will arrive. It will not be impacted by exchange rates. Your recipient then has the choice: hold it or exchange it for the local currency.
Does this change how I send money to Nigeria?
We’re keeping everything else the same. The important thing to remember is that the methods you normally use for remittance to Nigeria will not change. You can still send money via the most popular routes:1. Bank deposit – send money directly to your beneficiary's bank account with Small World
2. Cash pick-up – send money to be collected from one of over 900 locations across Nigeria. Pick the one that’s right for you
3. Anywhere pick-up – send money to one of more than 800 locations across Nigeria that is closest to where your recipient is based at time of sending. The key benefit here is that your beneficiary can choose the location that works best for them at the time of sending, whether that’s near their home or somewhere they are travelling to.
Whether it is via your local agent or Small World branch, over the phone, online or by using our app – we are here at every step of the way. Remember, if you’re sending money online for the first time your first transaction is fee-free. Looking for more information on sending via our app? Read up on sending money online with Small World.
How has Small World reacted to the change?
We ensure a smooth and secure transaction through our partnerships with banks and other financial facilities across Nigeria and the world.A significant number of our 15m customers regularly transfer money to Nigeria, from all corners of the world.
Stanley Wachs, Managing Director, Northern Europe & Africa at Small World, shares his thoughts on the topic: “At the very top of our priority list is to do what we can to let customers reach friends, family and loved ones in the fastest and most cost-effective way. I am pleased that we could turn this around quickly with our partners in Nigeria and remain the money transfer partner of choice for money transfer to Africa.”
Why is this such an important time for remittance to Nigeria?
Right now is a great time to send money to Nigeria. The Central Bank of Nigeria has announced a new incentive “Naira 4 Dollar Scheme”. It has been created to help support your loved ones with extra money.
For every 1 US Dollars you send, the government will add 5N.
For example, if you send 100 US Dollars in a transaction, the person you’re sending money to will receive 500N as added. This will be added even if your receiver decides to take out the money in cash or transfer to a domestic account.
The incentive will be valid for all transfers from Monday 8th of March to 8th of May 2021.
The most popular ways to send money to Nigeria: Bank deposit Anywhere pick-up Cash pick-up Our main partners in Nigeria are Fidelity Bank, Polaris Bank, Union Bank, Wema Bank, Access Bank, GTBank and Ecobank.