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Are IMTOs Better Than All Traditional Ways of Sending Money To Nigeria

Remittance is money sent home by people living abroad to enhance the financial condition of their families and loved ones. Over the years, remittance has become an integral part of the economies of nations like Nigeria. The economy of countries like Nigeria is, to a considerable extent, impacted by remittance.

In recent years, remitters (i.e., people who send money to Nigeria from other countries) have increasingly relied on modern remittance services, including International Money Transfer Operators (IMTOs) rather than the traditional ways of remittance for dispatching cash to their loved ones back in their home country.

Traditional Methods of Remittance

Traditional money transfer methods include bank cheque transfers, money transfer agents, demand drafts, and money orders. Since most recipients were not exposed to or used to modern remittance methods, remitters used the traditional methods of remittance, which made them go through a lot of problems sending money. Some of the challenges the remitters encounter using traditional remittances include high transfer costs.  The transfer fees accounted for over 10% of the money they tried to send to their loved ones at home. The money also took a long time to get to their loved ones. Sometimes it took weeks for the money to get to its destination. These delays resulted in a desperate need for a new remittance method.

Modern Money Transfer System (i.e., Using IMTOs)

Initially, people thought that online transfer systems would be a complicated process—requiring some sophisticated gadgets, so they initially resisted these modern transfer systems. There were also issues of the remitters not trusting the online remittance operators or remittance providers. Still, since people were helpless and the traditional remittance system was very inconvenient and brought about so many issues, they had to give the IMTOs a try. With time the remitters started getting familiar and confident with the new transfer system, and today it is trendy among remitters.

Why Online IMTOs Are Better

For those living in the diaspora, online remittance and the use of IMTOs have proved to be a blessing for them because it has proffered solutions to the problems created by traditional remittance method. The list below summarizes some of the problems solved by online transfer. They include:

Online remittance has become popular among remitters because of its efficiency, speed, reliability, safety, and transparency. The IMTOs keep the remitters updated on the status of their transaction via emails and SMS. Anyone using a traditional remittance method will have to wait for up to two or three weeks before the recipient receives the money because several financial institutions have different procedures and regulations that they have to follow to complete remittance. The only benefits of the traditional remittance services, which are far outweighed by the disadvantages, are that one can send funds to very remote areas with no internet services.

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