MoneyGram Outbound Transfer Services Kick Off Soon

Posted by African Examiner Banking & Finance, Business News, Latest Headlines, News Friday, October 10th, 2014

By Niyi Adeyi

Following approval by the apex Bank, the Nigerian second operator of outbound money transfer services, MoneyGram, will soon kick-start its extended services from Nigeria to over 200 countries.

In a press release sent to the AFRICAN EXAMINER, there are strong indications that the new services will take off 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 recognized 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” the statement indicated.

The Outbound Services will re-inforce “Receive and Send money in 10 minutes” as well as expected to lead to greater convenience as customers will be able to access in the majority of MG location, through their partner banks.

The statement added that MoneyGram was offered through reputable financial institutions in Nigeria including 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.

In the meantime, a leading industry watcher had noted with over 10 million migrant residents in Nigeria and financial inclusion still below 50 per cent, the move by the Central Bank Of Nigeria (CBN) to grant licence to MTOs “to engage in outbound fund transfer service from the country was in the right direction”.

“The CBN’s policy to allow outbound traffic by the key MTO’s 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” the analyst noted.

It will be recalled CBN recently licensed three major Money Transfer Organizations (MTO’s) in Nigeria to engage in outbound services.