The UK-Nigeria remittance corridor : challenges of embracing formal transfer systems in a dual financial environment / Raúl Hernández-Coss, Chinyere Egwuagu Bun.

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.

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.

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.

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 review presents the remittance industry conditions existing in the UKNigeria remittance corridor at the origination and distribution stages of the transactions, and the intermediaries who facilitate the transfers. The report makes conclusions and compares these main findings with lessons from other corridors. The UK-Nigeria remittance corridor has an equal dominance of formal and informal remittance intermediaries. Although several formal financial institutions for transferring money exist in the UK, many people choose to send money informally. More collaboration between the UK and Nigeria is necessary to develop the remittance market, to encourage the use of formal channels, and to enhance the development potential. Among its benefits, the remittance country partnership (RCP) between UK and Nigeria aims to reduce the cost of remittance transfers. The Nigerian government is engaging its diaspora to help spur economic growth. This report recommends that each government focus on improving data collection at its end of the corridor and do more research to provide its policymakers and its private sector with accurate information.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.