UBA’s strong presence in 20 African countries, game changer for diaspora remittances 

UBA Group Managing Director/CEO Kennedy Uzoka

From LEADERSHIP Newspaper

For decades, remittances from Nigerians living abroad have significantly increased domestic income, social welfare and economic development.

The economic benefits of remittance inflows have similarly proven to be instrumental in  funding cash and non-cash investments thereby fostering new businesses, servicing debts and essentially, drive economic growth.

The Central Bank of Nigeria (CBN) and banks work closely to broaden the scope and scale of diaspora inflows through formal remittance channels dominated by International Money Transfer Operators (IMTOs).

The United Bank for Africa (UBA) has through its operation in 20 African countries and partnership with IMTOs supported Nigeria’s foreign capital inflows and CBN’s policies on exchange rate stability, reserve accretion, job creation, poverty reduction and economic growth.

Without a doubt, diaspora remittances continue to remain major sources of stable external financing for Nigeria and developing countries. Countries have continued to harness these benefits despite the global fall in remittance flows in the last year due to the COVID-19 pandemic.

To keep the dollar flows coming, the Central Bank of Nigeria (CBN) and commercial banks work closely to constantly improve Nigeria’s remittance infrastructure, ease the process of international money transfer and simplify the experience for senders and recipients.

For these stakeholders, the efficiency of remittance services, especially as provided through commercial banks’ and International Money Transfer Operators (IMTOs’) partnerships are critical to boosting dollar liquidity in the economy.

The PwC forecasts suggest that Nigeria’s remittance flows could reach US$34.89 billion by 2023, hence the need for the apex bank and commercial banks to continually work closely to ensure that more funds flow into the economy.

In this regard, the CBN had urged banks to develop products and investments vehicles, geared towards attracting funds from Nigerians in the diaspora.

Such channels for sending and receiving funds from the diaspora are expected to be seamless and convenient to their customers.

In compliance with this directive, the United Bank for Africa (UBA) Plc, with operations in 20 African countries, has used its wide network to boost foreign capital flows to the economy.

The UBA partnership with top IMTOs is ensuring convenience in sending and receiving money from anywhere in the world.

For instance, through the bank’s remittance partners, customers can receive money directly into their UBA account or pick up cash at any of its branches nationwide.

UBA has also created money transfer services that allow customers to deposit, transfer and withdraw cash in local currencies across 20 African countries.

The UBA, led by its Group Managing Director/CEO Kennedy Uzoka, is also implementing the ongoing ‘Naira for Dollar’ policy of the CBN which gives a N5 rebate for every $1 sent by Nigerians in the diaspora.

According to CBN Governor, Godwin Emefiele, the new measure would help to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerians in the diaspora.

In a circular to all authorised dealers and deposit money banks, the apex bank said the policy, which was to end on Saturday, May 8, will continue till further notice.

Forex Trading Associate, AZA, a global forex dealer, Oghenefejiro Eduviere, said the ’Naira for Dollar’ policy will continually support exchange rate stability and boost dollar flows to the economy.

Operational guidelines for IMTOs

International money transfer is a fast and secure electronic payment service that allows money transfer across African countries and beyond.

Although the operational guideline for each IMTO differs, the objective remains to provide seamless and affordable money transfer service to beneficiaries.

According to UBA, to send or receive money through IMTOs would require completing a form indicating the IMTO service, Bank Verification Number, savings or current UBA account, valid means of Identification for non-account holders (National I.D card, International Passport, Drivers licence or Nigerian Voters Card).

For receivers, a Personal Identification Number (PIN) code provided by the sender is required.

The bank says it remains one of the leading banks in terms of remittance services across Africa. “We are currently ranked number two in Money Gram, number three in Western Union and Ria money transfer services. In April, our cumulative transaction count was 33,000 and the amount remitted through UBA was about 14.03 million,” it said.

The bank says it remains committed to providing ease and convenience for money transfers across the world.

UBA’s partnership with MoneyGram, Western Union, Ria Money Transfer, World Remit, Flutter Wave, AFTAB (Ace Money Transfer), Cash Pot, Colony Capital (Fincode), Swift Payment, Naira Gram, IDTPS Boss Resolution, SmallWorld, Sendwave and Omnex has enabled it to serve more people in the remittance market.