When you send money with a Nigeria direct money transfer, you don’t just benefit the recipients. According to analysis from economic specialists, you actually help develop the entire economy of the country. How is this possible? Here’s a look at the details.
A Nigeria Direct Money Transfer Helps More Than Individuals
Generally, when you send money to someone in Nigeria, you just send it to that individual person and their family. However, the effect of the money goes a lot further. To take a simple example, imagine that your family spends the money on education—that helps to improve the overall education level of everyone in the country which directly helps to stimulate development down the road.
Similarly, when friends or family spend money on food, that creates jobs. Someone has to grow, transport and sell that food. By supporting consumption, your money transfer is supporting the economy as a whole.
Recipients Save Some of Their Cash
When you send money to Nigeria or other countries, the recipients don’t necessarily spend all that money. In fact, on average, people save 25 percent of the money they receive from a Nigeria direct money transfer.
That also helps the economy. When people have money in savings, that creates a cushion. They are able to dip into that cushion as needed for necessary expenses. As a result, the economy gets a constant inflow of cash. In contrast, when someone is dealing with fluctuating income, they may be able to afford goods and services one month but not the next. That creates a destabilizing force on the economy.
Many People Invest Their Direct Money Transfers
Some people take the money that they are saving or the funds they receive from a Nigeria direct money transfer, and they use that money on large purchases that help the entire community. For example, someone may decide to build a solar panel or a well. Choices like that bring much needed resources to an area.
There Is Support for Nigeria Direct Money Transfer
Wondering who thinks that a Nigeria direct money transfer is good for development? You may be surprised to hear about the groups that support transfers. In particular, the United Nations has called for affordable money transfers—it’s part of the group’s Sustainable Development Goals.
Additionally, the International Fund for Agricultural Development (IFAD) has recently released a report that explores the benefits of global remittances. Both of these groups as well as similar organizations have indicated that direct money transfers can even be more effective than global aid.
When the money goes directly to the people who need it, there’s no middle man. There’s no worry about losing funds to corrupt government officials or to excessively high overhead from charity organizations.
A Direct Money Transfer Affects Currency Values
Additionally, when you do a Nigeria direct money transfer, that increases the demand for Naira on the global market. The increased demand can lead to a more favorable exchange rate for the Naira. That can help the export economy of the country, and that’s another indirect benefit of global remittances.
Want to send money to friends and family while also helping develop the economy of Nigeria? Then, it’s time to try Ping Express. You can send money online or download the app to make it even easier.