Mobile remittances increase by 48% in Nigeria, other
According to the GSMA, a global association of telecommunications operators, MOBILE money transactions grew by 48% to $15.9 billion in 2021 in Nigeria and other low- and middle-income countries.
The organization said that number represents only about 2.7% of the total expected flows to these countries.
He revealed this in a report titled “State of the Mobile Money Industry Report 2022”. He said: “When the COVID-19 pandemic began in early 2020, the ensuing global recession and fears of mass unemployment were expected to lead to a sharp decline in international remittance flows to LMICs.
“Instead, diasporas around the world continued to support those at home and, despite a difficult year, international remittances fell just 1.7% in 2020. Over the same period, the number of international remittances sent and received via mobile money has increased very rapidly. , made possible in part by a widespread and accelerated transition to digital transactions.
“While total remittance flows to LMICs were expected to grow by 7.3% in 2021, mobile money-enabled remittances grew faster, by 48%, to reach 15.9 billion dollars. Despite this impressive growth, the total value of remittances sent through the mobile money channel still represents only 2.7% of the total projected flows to LMICs, estimated at $589 billion in 2021.
“This indicates that, even after remarkable growth, the mobile money channel still has considerable potential. It remains to be seen whether higher rates of digitization and international remittances enabled by mobile money will continue beyond the pandemic.
The GSMA added that this trend is expected to continue as digital international money transfer flows are faster to operate and more affordable.
However, he noted that 40% of mobile money providers do not offer international money transfer services to their customers.
In Nigeria and other countries in sub-Saharan Africa, this figure is 30% despite the high cost of remittances in the region.
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