According to Western Union’s inaugural Global Money Transfer Index, Nigerian consumers want more innovation from money transfer providers to meet their remittance needs.
Eighty-nine percent of consumers in Nigeria who receive remittances want services integrated into a “super app” that allows them to manage all of their personal finance needs. Seventy-nine percent prefer platforms that support multiple languages.
The Global Money Transfer Index inquires about how, when, and why consumers use international money transfer capabilities today, as well as their future expectations.
The findings support Western Union’s ‘Evolve 25’ strategy, which aims to provide high-value, accessible retail and digital financial services to all customers.
“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.”
Nigeria’s fast-paced economy is reflected in the Index, as the country’s government continues to implement its National Digital Economy Policy and Strategy. Evidence of its influence could explain why 61% of consumers who receive money prefer to use digital methods from beginning to end today.
The speed of transfer is critical here, and it is the most important factor that consumers consider when deciding which provider to use 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.
Nigeria’s inbound remittance flows are expected to be $21 billion in 2022, making the country the largest receiving market in Africa and the ninth largest globally.
Currently, 63% of the country’s consumers receive money at least once a month. As consumers adjust to higher global living costs, 85% expect to receive more money in the next 12 months.
According to Western Union, 82% of Nigerian senders expect to transfer more in the next 12 months. They do, however, face a cost of living dichotomy: Three-quarters (75%) say global economic conditions prevent them from transferring as much as they used to.