E-Financial
Western Union, Moneygram Hit Nigeria, Others with Charges
Western Union and Moneygram, the world’s leading money transfer companies, have been accused of charging a premium of up to 12 per cent on remittances into Africa, according to a recently released report by UK-based think tank The Overseas Development Institute (ODI), according to the Banker
Yet the banks in Africa appear to charge even higher.
The ODI report claimed that the two money transfer operators’ (MTOs) excessive charges cost African migrants approximately $1.8 billion annually, a significant leap from global rates.
“Migrants sending $200 home can expect to pay 12 per cent in charges, which is almost double the global average. While the governments of the G8 and the G20 have pledged to reduce charges to five per cent, there is no evidence of any decline in the fees incurred by Africa’s diaspora. There is no justification for the high charges incurred by African migrants,” the ODI said.
While it is difficult to pin down just how many Africans live outside their countries of origin, an assortment of statistics can paint a picture.
The World Bank said in 2011 that the number of Africans that have migrated outside their country of origin in recent decades is “conservatively” estimated to be more than 30 million (according to the United Nations, some 232 million international migrants are living in the world today) and has grown more than any other migrant community at 53 per cent in the past 10 years.
The OECD estimated that one in every nine persons born in Africa with a tertiary diploma lived in an OECD country in 2010-2011.
At the same time, the highest share of low educated migrants in the same period was recorded for migrants born in Sao Tomé and Principe (73 per cent), Cape Verde (68 per cent), Mali (67 per cent) and Guinea-Bissau (66 per cent).
The latest World Bank figures show that remittances from migrants are expected to rise to $436 billion this year, more than three times what poor countries receive in overseas aid. That number is expected to rise to $516 billion in 2016.
Nigeria alone accounted for about $21 billion, or 65.6 per cent of flows into the region, and is forecasted to bring in $41 billion of remittances in 2016.
The booming activity has led many banks in the region to establish Diaspora Banking services, including bonds, investments and remittance offerings.
However according to the ODI, banks are part of the price problem. While the ODI does not allege any sort of rate fixing between the two transfer companies, it notes that each one’s “exclusivity agreements” with banks and remittance agents in Africa have been one factor in the charges hike.
“Governments and regulatory authorities in sending countries should do far more to promote competition and encourage innovation,” The ODI said. “In an age of mobile banking, internet transfers and rapid technological innovation, no region should be paying charges at the levels reported for Africa.”
Yet remittance corridors within Africa actually charge the most excessive prices. The ODI reports that migrant workers from Mozambique sending money home from South Africa, or Ghanaians remitting from Nigeria, can face charges of more than 20 per cent.
“In several African countries, banks are the only agency authorised to conduct money-transfer operations, and typically partner with large MTOs,” the report noted. In countries where only banks are authorised to pay remittances, such as South Africa, Mozambique and Lesotho, half are agents of Western Union and MoneyGram.
According to The International Fund for Agricultural Development, banks in partnership with Western Union service about 41 per cent of payments and 65 per cent of all pay-out location.
The ODI says that there are 29 countries in Africa where banks account for over half of the in-bound remittance payments; in Ethiopia, Niger and Nigeria the share is more than 80 per cent.
All this begs the question: what do Diaspora Banking products at commercial banks provide? The service has risen over the past few years, and is already offered through many Sub Saharan African banks attempting to reach citizens scattered throughout the world.
Yet ODI reports that all of the world’s top ten remittance-charging corridors are in Sub Saharan Africa, with South Africa and Tanzania “figuring in all but one of these corridors.”
Migrants from Malawi, Mozambique and Zimbabwe employed in South Africa, and Ugandans remitting money home from Kenya face charges well over 20 per cent. In Ghana, Nigerian workers can expect to pay 39 per cent in charges.
“The very high charges levied on remittance corridors to and within Africa reflect the central role of banks – the most costly transfer vehicle,” said the ODI. Why are remittance charges for Africa so high?
The ODI says it’s difficult to answer that question, largely due to the “opaque nature of commercial operations.” For MTOs, cost structures and foreign currency exchange fees, including currency volatility measures, are not openly provided and no MTO has disclosed the terms of their commercial agreements with African banks.
E-Financial
First Asset Management Launches National Initiative to Raise 100m Investment-Smart Nigerians
First Asset Management, one of Nigeria’s leading investment managers and a subsidiary of FirstHoldCo Plc, launches the 100 million Smart Inventors campaign.
Nigeria’s investment market has huge potential, yet it remains underutilised due to widespread distrust, misinformation, and past losses suffered through fraudulent schemes. Trillions of Naira have been lost, leaving many Nigerians fearful and excluded from real, rewarding investments and leaving them on the economic sidelines.
Reports show that less than 5% of adult Nigerians currently participate in the formal capital market, and as low as 0.25% invest in Mutual Funds, a stark contrast to participation rates often exceeding 50% in developed economies like the United States. This highlights the urgent need to restore trust and improve access to credible investment education.
In response to this critical challenge, First Asset Management has announced the launch of a landmark national movement, the “100 million Smart Investors Initiative”. The campaign is positioned as a direct strategy to rebuild investor confidence and democratise financial knowledge across the nation.
According to the firm, the initiative was conceived from the need to address the anxieties that have historically prevented countless Nigerians from participating in real wealth-building investments. Drawing on its track record of trust and market expertise, First Asset aims to cultivate a new generation of informed, confident investors.
At the heart of the initiative is a comprehensive investor education programme. The goal is to transform casual interest in investing into active participation within a supportive, well-informed community.
Beyond expanding investor numbers, the movement seeks to improve the quality of investment decisions by equipping individuals with the tools to evaluate opportunities and avoid fraudulent platforms.
For everyday Nigerians, the initiative promises simplified, practical financial education that demystifies investing. By building a strong peer network through a nationwide community platform, it seeks to reduce the isolation often faced by new investors and promote collective financial empowerment.
Ultimately, the 100 Million Smart Investors movement represents a significant investment in Nigeria’s human capital. By providing actionable steps, success stories, and sustained education, First Asset Management aims to usher in a new era of financial literacy and participation.
This initiative would not only enhance the financial well-being of individuals and families but also contribute to the broader economic prosperity of the nation by channelling dormant capital into productive sectors of the economy.
To kickstart this bold quest, the brand has planned a series of free educational bootcamps, podcasts and community engagement with industry experts and leaders. The inaugural event will take place live on 26 July 2025.
Follow @FirstAssetManagement on all social media handles to stay informed and visit https://first-assetmanagement.com/smart-investors for details on how to join the movement.
PalmPay, a leading neobank and fintech platform focused on emerging markets, has been recognised in CNBC and Statista’s 2025 Top 300 Fintech Companies in the World list. This marks the second year in a row that PalmPay has earned a place among the world’s most innovative and impactful financial technology firms.
The selection is based on a rigorous evaluation of thousands of companies globally, assessing growth, innovation, market penetration, and impact. This year’s list includes a mix of global leaders – including Revolut, Nubank and Ant Group – alongside rising stars from high-growth markets, underscoring the growing influence of emerging-market fintechs like PalmPay.
PalmPay’s inclusion reflects its continued momentum as one of Africa’s leading fintech platforms. With over 35 million registered users and up to 15 million transactions processed daily, the company offers a comprehensive suite of digital financial services tailored to the needs of underserved communities.
In its main market, Nigeria, PalmPay operates as a full-service neobank, offering consumer financial services such as transfers, bill payments, credit, savings, and insurance – all accessible through its user-friendly app and supported by a nationwide network of over 1 million agents and merchant partners. The company also provides POS and API-driven B2B solutions tailored to the needs of merchants and enterprise clients.
“To be recognised as one of the world’s top fintech companies by CNBC and Statista is a powerful affirmation of our mission to build a more inclusive financial system,” said Sofia Zab, Founding Chief Marketing Officer at PalmPay.
“Through cutting-edge technology, deep local distribution, and a customer-first mindset, we’ve built Nigeria’s leading neobank. As we scale PalmPay to more emerging markets, including Tanzania and Bangladesh, our focus remains on closing financial access gaps for everyday consumers and businesses, while expanding the partner ecosystem that fuels our reach and impact.”
As part of its broader expansion strategy, PalmPay recently launched in Tanzania and Bangladesh through a smartphone device financing model that serves as an entry point to digital financial services.
“PalmPay is building a neobanking platform tailored to the realities of emerging markets,” said Jiapei Yan, Group Chief Commercial Officer at PalmPay. “We are creating the infrastructure for a connected digital economy – where people and businesses can thrive through reliable, inclusive financial tools.
This recognition from CNBC and Statista affirms our progress and also the scale of the opportunity ahead. As we expand across more emerging markets, we are committed to creating lasting value for our users, partners, and the communities we serve.”
PalmPay’s inclusion follows another major recognition earlier this year: the company ranked #2 overall and #1 in the financial services sector on the Financial Times – Africa’s Fastest-Growing Companies 2025 list. The ranking, based on revenue growth between 2020 and 2023, highlighted PalmPay’s rapid scale and market traction across Africa.
PalmPay currently operates in Nigeria, Ghana, Tanzania, and Bangladesh, and is expanding its presence across Africa and Asia through device financing, digital banking, and B2B payment services. Backed by a robust neobanking platform and a partnership-led approach, the company is committed to shaping the next chapter of inclusive financial growth.
Fidelity Bank Plc has reaffirmed its commitment to quality education and youth empowerment with the renovation of a classroom block and donation of textbooks to Aso Pada Government Secondary School in Karu LGA, Nasarawa State.
L-R: The Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka; Vice Principal, Government Secondary School, Aso Pada, Maraba, Mr. Abdullahi Idris; Project Co-ordinator, Elite Bankers 2025 Inductee Class, Fidelity Bank Plc, Onyinyechi Ihesiaba; Vice Principal -Academics, Government Secondary School, Aso Pada, Maraba, Mr. Ela Isa; during the commissioning of a renovated block of classrooms and the distribution of Back-to-School Materials at Government Secondary School Aso Pada, Maraba, Nassarawa State recently.
The project was executed through the Fidelity Helping Hands Program (FHHP), a corporate social responsibility initiative that enables staff to identify community needs, raise funds, and receive matched support from the bank.
Speaking at the handover ceremony, Dr. Meksley Nwagboh, Divisional Head, Brand and Communications, said the school was chosen due to its impact on the local community and its lack of renovation in over 15 years.
Vice Principal Abdullahi Idris praised the bank’s gesture, calling it “an investment in the future of our nation,” and expressed hope for a lasting partnership.
The initiative follows Fidelity Bank’s recent donation of 1,000 solar-powered schoolbags to pupils across Ogun State, aimed at improving study conditions in areas with limited electricity.
Fidelity Bank serves over 9.1 million customers and has received multiple awards for innovation and SME support, including the 2024 Excellence in Digital Transformation Award and Best Bank for SMEs in Nigeria by Euromoney.
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