fbpx

U.S.’s MoneyGram And GT Bank Launch Remittance Service In Nigeria

U.S.’s MoneyGram And GT Bank Launch Remittance Service In Nigeria

U.S.-based MoneyGram, the world’s second largest money transfer provider, has partnered with GT Bank, a leading retail bank in Nigeria, to launch MoneyGram services across the GT Bank network, according to AfricanBusinessReview.

Remittance is the second largest source of foreign exchange in Nigeria after the oil sector. According to the World Bank, Nigeria accounts for around two-thirds of total remittance inflow to Sub-Saharan Africa. In 2015, an estimated $21 billion flowed into the country including $5.7 billion sent from the U.S. About $3.7 billion was sent from the U.K. Other key corridors include Cameroon ($2.4 billion), Italy ($1 billion), and Ghana ($0.8 billion), AfricanBusinessReview reported.

MoneyGram CEO Alex Holmes and GT Bank general manager, operations division, Tayo Asupoto made the announcement during a signing ceremony at the Intercontinental Hotel in Lagos.

“Remittances are crucial to Nigeria’s economy” said Holmes. “MoneyGram’s account deposit service makes it easy and convenient for both the sender and the receiver to transfer and receive funds. We are pleased to work with GT Bank and we are proud to be connected to almost 1.5 billion bank accounts in five of the world’s largest remittance receive markets — Nigeria, China, India, Mexico and the Philippines.”

Even as Africa’s biggest economy struggles with lower oil prices, foreign-exchange controls and scarce dollars, MoneyGram expects accelerated growth in Nigeria, Bloomberg reported.

If the situation in Nigeria deteriorates, people living abroad will send more money home to help support their families, Holmes said on Wednesday in Lagos. “As the population grows, so does our business,” he said.

Customers in Nigeria can receive money from friends and family in 129 countries directly into their personal GT Bank accounts within minutes, according to AfricanBusinessReview.

This service will be available through MoneyGram’s cash-to-account service. Funds can be accessed as customers would normally do on all deposits into their accounts — in person, online or through an ATM.