Remittances, competition and fair financial access opportunities in Nigeria
By Manuel Orozco and Bryanna Millis
U.S. Agency for International Development, October 12, 2007
This report presents the findings of a study on remittances to Nigeria and explores the policy and development implications for senders and recipients. The main problem identified in the findings is that the competitive environment for money transfers in Nigeria is highly constrained. This is due to near monopolistic conditions by one Money Transfer Organization and the fact that banks are the only entities legally authorized to perform international payments. These conditions actually facilitate informal transfers. Other findings in this report show that there is willingness among banks and other financial institutions to entertain alternative strategies, including partnerships with alternative MTOs or innovative technologies for money transfers.