Remittances, Competition and Fair Financial Access Opportunities in Nigeria

This report presents the findings of a study on remittances to Nigeria and explores the policy and development implications for senders and recipients. The main problem identified in the findings is that the competitive environment for money transfers in Nigeria is highly constrained. This is due to a near-monopolistic hold on the market by one money transfer operator (MTO) and the fact that banks are the only entities legally authorized to perform international payments. These conditions actually encourage informal transfers of money. Other findings in this report show that there is a willingness among most banks and other financial institutions to entertain alternative strategies, including partnerships with alternative MTOs or innovative technologies for money transfers.