UK-Nigeria Remittance Corridor Challenges of Embracing Formal Transfer Systems in a Dual Financial Environment

• Main Authors: Hernandez-Coss, Raul, Egwuagu Bun, Chinyere
• Format: eBook Book
• Language: English
• Published: Herndon World Bank Publications 2007; The World Bank; Washington, DC: World Bank
• Edition: 1
• Series: World Bank Working Papers
• Subjects: ACCOUNT HOLDERS; ACCOUNT-TO-ACCOUNT; ACQUISITION; ADB; ANTI-MONEY LAUNDERING; AVERAGE REMITTANCE; BALANCE OF PAYMENTS; BANK ACCOUNT; BANK BRANCHES; BANK DATA; BANK DRAFT; BANK DRAFT PAYMENTS; BANK OF ENGLAND; BANK TRANSFER; BANK TRANSFERS; BANKING SUPERVISION; BANKS; CASH-TO-CASH; CENTRAL BANKS; CHILD LABOR; CITIZEN; CITIZENS; CITIZENSHIP; CLEARING HOUSE; COLLECTIVE; COLLECTIVE REMITTANCES; COMMERCIAL BANK; COMMUNITIES OF ORIGIN; COMMUNITY DEVELOPMENT; COMPANY; COMPENSATION OF EMPLOYEES; CONTRIBUTION OF REMITTANCES; CORRESPONDENT BANKS; COST OF LIVING; COST OF TRANSFERS; COUNTRY OF ORIGIN; CURRENCY CONVERSIONS; DATA ON REMITTANCES; DEVELOPING COUNTRIES; DEVELOPMENT IMPACT OF REMITTANCES; DEVELOPMENTAL IMPACT; DIASPORA; DISSEMINATION; DUE DILIGENCE; Economic conditions; ECONOMIC GROWTH; ECONOMIC OPPORTUNITIES; ELDERLY; ELECTRONIC FUNDS; ELECTRONIC FUNDS TRANSFER; ELECTRONIC PAYMENTS; Emigrant remittances; Emigrants; EMIGRATION; EMPLOYEE COMPENSATION; ESTATE; ETHNIC GROUP; ETHNIC GROUPS; EUROPEAN CENTRAL BANK; EXCHANGE RATE; EXTENDED FAMILY; FAMILY MEMBERS; FARMS; FEDERAL GOVERNMENTS; Financial economics; FINANCIAL INSTITUTIONS; FINANCIAL INTERMEDIARIES; FINANCIAL PRODUCTS; FINANCIAL SERVICES; FINANCIAL SYSTEMS; FOREIGN CURRENCY; FOREIGN DIRECT INVESTMENT; FOREIGN EXCHANGE; FOREIGN EXCHANGE RATES; FORMAL MONEY TRANSFERS; FORMAL TRANSFER SYSTEMS; FUNDS FLOW; GOVERNMENT INITIATIVES; Great Britain; HOME COUNTRIES; HOUSING; HUMAN TRAFFICKING; HUMANITARIAN AFFAIRS; IMMIGRANTS; INCOME; INDIVIDUALS; INFORMAL REMITTANCE; Informal sector; Informal sector (Economics); INFORMAL TRANSFER; INITIATIVES ON REMITTANCES; INTERNATIONAL MONEY ORDER; INTERNATIONAL REMITTANCE; INTERNATIONAL REMITTANCE SYSTEMS; LEGAL FRAMEWORK; LEGAL STATUS; LEGISLATION; LIMITED; LOCAL CURRENCY; MARKET COMPETITION; MIDDLE EAST; MIGRANT; MIGRANTS; MIGRATION; MILLENNIUM DEVELOPMENT GOAL; MONEY HOME; MONEY LAUNDERING; MONEY TO FAMILIES; MONEY TRANSFER; MONEY TRANSFER OPERATOR; MONEY TRANSFER OPERATORS; MONEY TRANSFERS; MONEY TRANSMITTERS; MUNICIPAL GOVERNMENTS; NATIONALS; Nigeria; NONPROFIT ORGANIZATIONS; NURSES; OFFICIAL DEVELOPMENT ASSISTANCE; OLD AGE; ORPHANS; PARTNERSHIP; PEER REVIEW; PERMANENT RESIDENCE; PERSONS; PETROLEUM EXPORTING COUNTRIES; POLICY; POSTAL SERVICE; POVERTY REDUCTION; PRODUCTIVITY; PUBLIC TRANSPORTATION; RECIPIENT COUNTRIES; RECIPIENT OF REMITTANCES; REGULATORY FRAMEWORK; REMITTANCE; REMITTANCE BUSINESS; REMITTANCE CORRIDORS; REMITTANCE FLOW; REMITTANCE FLOWS; REMITTANCE INDUSTRY; REMITTANCE MARKET; REMITTANCE PAYMENT; REMITTANCE PRODUCTS; REMITTANCE SENDERS; REMITTANCE SERVICE; REMITTANCE SERVICE PROVIDERS; REMITTANCE SERVICES; REMITTANCE TRANSACTION; REMITTANCE TRANSACTIONS; REMITTANCE TRANSFER; REMITTANCE TRANSFERS; REMITTANCES; RURAL AREAS; SAHARA; SAVINGS; SEND MONEY; SEND MONEY HOME; SEND REMITTANCES; SERVICE PROVIDER; SET OF RECOMMENDATIONS; SETTLEMENT SYSTEMS; SKILLED MIGRANTS; SOCIAL WELFARE; SOCIETY; SPECIFIC REMITTANCE; SUB-SAHARAN AFRICA; SUBSIDIARY; SURVEY OF REMITTANCE PRODUCTS; TECHNICAL ASSISTANCE; TERRORIST; TRANSFER CHANNELS; TRANSFER COST; TRANSFER COSTS; TRANSFER FEE; TRANSFER MECHANISMS; TRANSFER MONEY; TRANSFER PROCESS; TRANSPORT; UNION; United Kingdom; UNIVERSITY EDUCATION; UNSKILLED LABOR; URBAN AREAS; USES OF REMITTANCES; VALUE OF REMITTANCES; WAGES; WESTERN EUROPE; WORKER REMITTANCES; WORKERS REMITTANCES; Europe and Central Asia; United Kingdom; Nigeria; Africa; ANTI-MONEY LAUNDERING; REGULATORY FRAMEWORK; REMITTANCES; REMITTANCE SERVICE PROVIDERS; FORMAL TRANSFER SYSTEMS; REMITTANCE MARKET; POSTAL SERVICE; INFORMAL FUNDS; REMITTANCE COUNTRY PARTNERSHIP (RCP); REMITTANCE; NIGERIA; INFORMAL FUNDS TRANSFER; BANKING; REMITTANCE SERVICE; MONEY TRANSFER; DEVELOPMENT POTENTIAL; TRANSFER; INITIATIVES ON REMITTANCES; REMITTANCE TRANSFERS; TRANSFERRING MONEY; UNITED KINGDOM; DIASPORA

This study is the first research work on remittances conducted in Nigeria and reveals the actual state of its remittance market. The report describes how United Kingdom residents of Nigerian origin transfer remittances home and how the funds are distributed to their beneficiaries in Nigeria. The rev...

Table of Contents:

• Intro -- Contents -- Foreword -- Acknowledgments -- Acronyms -- Executive Summary -- Introduction -- 1. At the First Mile -- Remittances and Migration in the UK -- Nigerian Diaspora Community -- Remittance Patterns -- Remittance Service Providers -- Circumstances that Influence Sender Choices -- Legal Framework Affecting Remittance Transfers -- UK Government Initiatives on Remittances -- Main Findings in the First Mile -- 2. At the Intermediary Stage -- Remittance Transfers through Formal Intermediaries -- Remittance Transfers through Informal Intermediaries -- Costs Associated with Formal Transfers -- Market Opportunity for New Technologies -- Payments Systems -- Main Findings in the Intermediary Stage -- 3. At the Last Mile -- Significance of Remittances for Nigeria -- Locations of Nigerians Abroad -- Remittance Beneficiaries -- Using Remittances for Housing -- Remittance Service Providers in Nigeria -- Postal Service -- Informal Funds Transfer Operators -- Legal and Regulatory Framework Affecting Delivery of Remittances -- Financial Market Integrity -- Nigerian Government Initiatives on Remittances and Economic Growth -- Key Findings in the Last Mile -- 4. Conclusions and Policy Recommendations -- Conclusions -- Policy Recommendations -- Appendix A. United Kingdom Regulatory Overview -- Appendix B. Nigeria Regulatory Overview -- References -- Map of Formal Flows in the UK-Nigeria Corridor and Current and Potential Networks for Distribution in Nigeria -- List of Tables -- 1. Select Indicators for Nigeria -- 2. Remittance Transfer Fee from UK to Nigeria, May 2005 -- 3. Value of Remittances Exchanged for Local Currency by Banks, 2002-05 -- 4. Transfer Cost of £100 from UK to Nigeria -- 5. Key Payment Instruments in Nigeria -- 6. Breakdown of Home Remittances through MTOs by Country of Origin, 2002-04 -- 7. Main Findings -- List of Figures
• 20. Remittances + Housing = Market Opportunity: The Mexican Experience -- A1. EU Payments Directive: New Legal Framework for Payments in the Internal Market -- B1. Legislation to Combat Money Laundering and Financing of Terrorism in Nigeria
• 1. Recorded Workers' Remittances to Developing Countries and Sub-Saharan Africa (1990-2004) -- 2. Top 15 Remittance-sending Countries, 2004 -- 3. Migrant Community in the UK -- 4. Market Shares of MTOs Operating in the UK-Nigeria Corridor, 2005 -- 5. Circumstances that In.uence Senders' Choices -- 6. Typology for UK Risk-based Approach to AML/CFT -- 7. Channels for Origination in the UK and Distribution in Nigeria -- 8. MTOs Retail Prices for Sending Money from UK to Nigeria, April 2004 -- 9. Workers' Remittances to Three West African Countries -- 10. Workers' Remittances to Nigeria, 1997-2004 -- 11. Remittance Flow Origination by MTOs, 2004 -- 12. Estimated MTO Market Share in the Origination of Remittance Transfers to Nigeria, 2005 -- 13. Historic Data on the Different Foreign Exchange Rates Available in Nigeria, 2000-04 -- 14. MTOs Average Fees for Transferring £500, 2004 -- List of Boxes -- 1. Nigerian Migration History -- 2. MTN Top-up Card -- 3. Requirements for Opening a Bank Account in the UK -- 4. UK Money Transmitters Association -- 5. EU Payments Directive: New Legal Framework for Payments in the Internal Market -- 6. Sending Money Home? Initiative -- 7. Bank Transfer Systems in the UK-Nigeria Remittance Corridor -- 8. Most Common Remittance Transfer Process from UK to Nigeria -- 9. Telecommunications Industry in Nigeria -- 10. CPSS/World Bank Task force for General Principles on International Remittance Systems -- 11. TARGET and SWIFT Payments Systems -- 12. How the CBN Compiles BoP Data -- 13. Making Ends Meet for Ekundayo and His Siblings -- 14. Common Uses of Remittances in Nigeria -- 15. Exclusivity vs.Multiple Agreements Agent for One MTO -- 16. Nigerian Postal Service -- 17. Bus Transport System and Money Transfer in Nigeria -- 18. Jefri Couldn't Take His JAMB Exams -- 19. Nigeria's Removal from NCCT List