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Business Insider
5 days ago
- Business
- Business Insider
Love, loyalty, and responsibility: Why Nigerians in diaspora send billions home each year
It's no secret that Nigeria ranks among the top recipients of remittances globally. Every year, millions of Nigerians living abroad send billions of dollars home to help support their families, invest in businesses, and contribute to the country's socioeconomic progress. Remittances from Nigerians abroad play a significant role in the country's economy, reaching $20.93 billion in 2024, a 5-year-high. Despite significant naira depreciation, the diaspora continues to send money back home, citing family commitments and emotional ties. Fintech advancements in Nigeria, such as the rise in startup funding and tailored diaspora solutions, have also contributed to easier money transfers. These remittances, which are often tiny sums given frequently, have grown to become a major pillar of Nigeria's economy. As an example, remittances reached a 5-year-high of $20.93 billion in 2024, underscoring a compelling narrative for Nigerians living abroad: emotional ties and family commitments often supersede economic logic. Why Nigerians in diaspora are sending money back home Rationale 1 The Nigerian Central Bank, which presented the statistics, attributed its policies to the basis for the increase. CBN Governor Yemi Cardoso credited recent economic reforms for the surge in remittances, with monthly inflows rising from $250 million early in 2024 to $600 million by September, as per a report by BusinessDay. The policies in question include the unification of exchange rate windows, the adoption of a market-driven rate regime, and the introduction of the Electronic Foreign Exchange Matching System (EFEMS) to enhance transparency and efficiency in the forex market. However, government policies alone fail to rationalize Nigeria's remarkable diaspora remittance, considering that the Naira depreciated by 40.9% over the same period, completing the year at N1,535 per US dollar. In fact, it could be argued that the volatility of Nigeria's financial market constitutes a roadblock, as highlighted by Ravi Jakhodia, CEO of Moniepoint GB, who, during an interview with Business Insider Africa, stated; 'What we have seen generally is that the diaspora in the UK does not want to hold their value in Naira, so they do just-in-time transfers when they really need to spend that money in Naira.' 'I think the challenge with Naira is that in the past it has depreciated a lot, and it also continues to be very volatile, which makes it difficult for people to plan and budget for,' he added. Also, given that the country, prior to the policies touted, has historically boasted some of the world's highest remittance figures, the idea that the CBN's recent policies are the sole reasons for the significant amount Nigerians in diaspora sent back home doesn't necessarily ring true. A small sample size of Nigeria's UK diaspora remittance in 2021 highlights this point. During the year, as per the Migration Observatory in the UK, the Indian and Pakistani diaspora stood as the only countries to remit more money back home than Nigeria, at £4.46 billion and £2.94 billion respectively. The Nigerian diaspora, on the other hand, remitted £2.76 billion, higher than France, Germany, and China, which had £2.46 billion, £1.67 billion, and £1.24 billion, respectively. The figure above underscores Nigeria's incessant need to send money back home, especially when you consider that in the period under review, Nigerians in the UK accounted for 270,768 of the region's 67.0 million total population, compared to India's 920,000 people, 1.5%, and Pakistan's 624,000 (1.0%), as per the UK's office for National Statistics. 'You can say I send around £500 monthly, I obviously give some to my mom, say maybe £150 to £200 to my mom, I also give some to my brother, and then there's my cousin, her mom is currently struggling so I have to send her some money to help her mom,' Mira, a Nigerian health care worker who in 2023 migrated to the UK revealed to Business Insider Africa. 'It's not like my mom needs it, she's doing fine, but that's my mom, even when I was in Nigeria, I used to send her money, talk less of now.' Why Nigerians Nigerians in diaspora are sending money back home Rationale 2 A more in-depth look into the subject also reveals that the increase in remittances could also be attributed (albeit probably to a lesser degree) to financial tech within the channel. Nigeria, one of Africa's top four tech markets, alongside Egypt, Kenya, and South Africa, has seen a surge in tech penetration, particularly for fintech solutions. As presently constituted, Nigeria has over 200 fintech services, all operating with the promise of servicing the unbanked. In the first half of 2024 alone, Nigerian fintechs outperformed other African startups in funding raised. Afridigest, a data and research platform focused on Africa, reported that Nigeria topped fintech funding among the continent's big four tech economies, securing $140 million. It was followed by Kenya with $97 million, Egypt with $35 million, and South Africa with $34 million. In October of the same year, Moniepoint Inc., the Nigerian unicorn, successfully raised US$110 million in equity financing, one of the largest funds received by a fintech company in Africa. Reports like this highlight how prevalent fintech solutions are in the West African tech hub, and conveniently, a good number of these fintech solutions offer services that ease the exchange of foreign currencies. While this may appear to be oversaturation, these solutions are quite viable, to the point where even markets without an unbanked population, such as the United Kingdom, are embracing the scheme. 'I think the penetration of financial services is quite high in countries like the UK, and you know other similar markets,' Ravi stated. 'It is a bit different, and the way we see that problem is that some peculiarities hinder their (Africans in the UK) experience of the financial services offered to them, and that is what specifically we are trying to help, by tailoring our solution for them and them only,' he added, rationalizing why Moniepoint decided to create a version of its service (MonieWorld) for the African diaspora. MonieWorld 'MonieWorld has launched the first product, which is to help with remittance, and we are already getting great customer feedback that we are faster, we are a better experience than what they have experienced,' he added. This initiative, alongside other similar products, highlights the importance of seamless transactions to the growth of remittance inflows into Nigeria. Why Nigerians Nigerians in diaspora are sending money back home Rationale 3 While a large portion of diaspora remittance goes into meeting basic needs like education, healthcare, and household expenses, it is hard to ignore the fact that a significant share can sometimes be directed toward entrepreneurial and capital projects. Outside of real estate investments, which have become commonplace, Nigerians living overseas tend to invest in SMEs, which are typically handled by trusted relatives or partners on the ground. These include businesses in transportation (such as ride-hailing or logistics), food processing, fashion, hospitality, and retail. An SME in Nigeria 'There's this fish business my mother began, and I send money to her to help grow the business,' Mira revealed. 'There was also this keke business my friend told me about, the total cost was around N500,000, so my friend and I sent about £250 each. We saw the business on Instagram and when we inquired, they promised us they would buy a keke and hire a driver, and then the business would begin to bring profit, so we sent the money,' she added. When asked if the business had yielded any returns, Mira responded, laughing, 'Well… not quite, but we are hopeful.' She also revealed that twice a year, she sends money to a charity organization that feeds disenfranchised school children, as she was a senior member of the group before she left for the UK. Remittance inflows into Nigeria in recent years In 2023, Nigeria accounted for 35% of Sub-Saharan Africa's diaspora remittance, receiving $19.5 billion. This figure falls short of the country's remmitance high in 2018, when $24.2 billion was remitted back to the West African country. The following year, the country received $23.80 billion, a marginal drop from the year before, and in 2020, during the COVID-19 pandemic, Nigeria received its lowest remittance inflow in recent years at $17.2 billion, owing to the shutdown of economic activities globally. Since then, the remittance inflow has steadily recovered, now reaching its 5-year high in 2024. Given how tight-knit the Nigerian family unit is, Nigerians who travel abroad feel deeply compelled to send money back home. 'Yes, I send money back home to family, friends, and my cousin, but the most consistent is my family, I send to my mom and dad every month,' Gabriel, a Nigerian data analyst in the UK, told Business Insider Africa. 'It's not like I have to, I just send money back home cause I have disposable income, sometimes I can send N40,000, sometimes I can send N120,000 to my folks, it's usually within that range,' he added. In addition to being monetary transfers, the billions of dollars that Nigerians living abroad send home each year are also gestures of love, responsibility, and hope.
Khaleej Times
26-03-2025
- Business
- Khaleej Times
UAE: Ras Al Khaimah real estate transactions surge 25,000% in 7 years
The real estate market in Ras Al Khaimah has grown significantly, with transaction volumes increasing by nearly 250 times or 25,000 per cent over the past seven years, according to the latest data from the Ras Al Khaimah Statistics Centre. The total value of real estate transactions in June 2024 reached Dh2,535,067,291, up from Dh10,113,300 in June 2017. Similarly, mortgage values rose to Dh3,475,928,534 in July 2024, compared to Dh15,836,398 in July 2017, an increase of approximately 21,849 per cent. This reflects growing investor confidence and the emirate's position as a real estate hub. The transaction increase comes as Ras Al Khaimah continues to attract investment through strategic initiatives, including the expansion of Ras Al Khaimah International Airport, significant hospitality and entertainment projects, and a growing focus on sustainable urban development. Christopher Cina, Director of Sales at Betterhomes, told Khaleej Times the surge in transactions is linked to increased development, improved connectivity, and growing demand for beachfront properties. 'The integrated gaming resort is expected to bring 4 million tourists a year to Ras Al Khaimah. Naturally, people prefer beachfront property as well,' he said. He also pointed to the rising number of completed projects and growing market confidence. 'Mortgage activity shows that lenders are taking the market seriously, and more importantly, it indicates that many developments are now complete. The numbers have gone up, and market sentiment has improved because, while there was limited development five years ago, today, there is a significant amount.' Andrei Charapenak, CEO of Major Developers, commented on the market growth: 'Ras Al Khaimah is no longer an emerging player it has established itself as an investment destination. The increase in real estate transactions and mortgage values reflects the emirate's economic development, driven by leadership, infrastructure projects, and demand for residential and commercial spaces.' He added: 'We are seeing a shift in investor sentiment, with luxury, sustainability, and lifestyle integration playing a major role in purchasing decisions. The real estate sector in Ras Al Khaimah is evolving to meet global standards, and new developments are catering to both local and international buyers.'
Arabian Business
26-03-2025
- Business
- Arabian Business
Ras Al Khaimah real estate ‘no longer an emerging player' as transactions up 25,000% since 2017
The real estate market in Ras Al Khaimah has witnessed unprecedented growth, with transaction volumes skyrocketing by nearly 25,000 per cent over the past seven years, according to the latest data from the Ras Al Khaimah Statistics Centre. The total value of real estate transactions in June 2024 reached AED2,535,067,291 ($2.535bn) an exponential leap from just AED10,113,300 ($2.8m) in June 2017. Similarly, mortgage values have soared, recording AED3,475,928,534 ($946.5m) in July 2024, compared to AED15,836,398 ($4.3m) in July 2017—an unprecedented increase of approximately 21,849 per cent. Ras Al Khaimah real estate This surge underscores the growing investor confidence and the emirate's rising prominence as a real estate powerhouse. Andrei Charapenak, CEO of Major Developers, said: 'Ras Al Khaimah is no longer an emerging player—it has cemented itself as a prime investment destination. 'The staggering increase in real estate transactions and mortgage values reflects the emirate's economic momentum, fuelled by visionary leadership, strategic infrastructure developments, and a strong appetite for premium residential and commercial spaces. 'We are seeing a paradigm shift in investor sentiment—luxury, sustainability, and lifestyle integration are driving purchasing decisions'. The surge in transactions comes at a time when Ras Al Khaimah is attracting heightened interest due to its strategic initiatives, including the expansion of Ras Al Khaimah International Airport, hospitality and entertainment investments, and a strong push toward sustainable urban development.
Yahoo
13-02-2025
- Automotive
- Yahoo
Here's How Fast A Car Has To Be Before You Think It's Too Fast
Supercars can go so much faster than they could ever legally go on an American public road for as long as there have been supercars, so what's the point in continuing to raise the top speed? Do you really need to be able to go faster than 85 miles per hour at all, anyway? Earlier this week we asked our readers to tell us what speed they felt was 'too fast' for a car, and the answers did not disappoint. We put together a few of our favorite answers below for your perusal. If you think you have a better answer, drop it in the comments below and keep the conversation going. I drive a 911. I don't have it to actually go very fast, in absolute speed. I bought it to have fun within legal(ish) limits on twisty mountain roads. I've never had it over 90, I don't think. I got that out of my system on race tracks. I'd be totally fine limiting it to 90. There's probably no good argument to allow faster than that on a public road. Suggested by Sissyfoot Only as fast as the tire technology can support. Suggested by Knyte Driving fast in and of itself doesn't really do that much for me. Getting to speed is what is fun. I would rather have a car that accelerates stupid fast and has a 100 mph limiter than a 200 mph car that takes a minute to get to 60. The main problem with speed is the margin of error and the domino effect it can have when things go wrong. At slower speeds you have time and space (potentially) to react if things start going wrong. Picture hydroplaning on a stretch of road with a curve coming up. At 70 you might have a chance to get it slowed down before the curve gets there, at 90 you've got a lot less time to adjust. Then, if worst comes to worst and things do go wrong, you're now barreling down the ravine/embankment/shoulder/ditch/etc. with way more momentum that can carry you into other stuff and further away from the road. So I think speed is less about what is 'safe' for modern vehicles to travel at and more about what happens when things go wrong. Are our crash barriers and other things designed to handle a vehicle with exponentially more kinetic energy running into them? Suggested by MoparMap In the past, I pushed my motorcycle up to it's 150mph top speed and that was... mostly boring. I've been driving on I-39 down the middle of Illinois and realized I was going 100 mph and that yeah, it doesn't make the prairie any smaller. All speed really does is up the stakes when something goes wrong from this is bad to this is catastrophic. When I took my MSF course decades ago, I remember the instructor pointing out that your speed should take into account not just the road, but what's near the road- If something goes wrong, are you gonna be sliding into trees or other cars or a fence or a ditch? And that stuck with me. Because problem at 50 mph is probably gonna be a lot less catastrophic than a problem at 100. Suggested by Buckfiddiousagain If I am going 90mph in a 535 I am far safer than somebody who's going 60 mph in a Wrangler. It is not even close. Speed limiters (on road) should be based on grip, stability and stopping distance, not some universal absolute. Cars should be speed rated with license plates that reflect their maximum safe speed classification. Obviously it can't be a free for all, you can''t have some people roaring past at 200 mph. But when Utah has 80mph highways where most cars are going 90 without drama, I have to believe that 90 is too low as a max speed. Suggested by BiffMagnetude I think there can be such thing as too fast to be fun. One problem with cars like the ZR1 is that you are almost always going to be holding it back. Even if you take it to a trackday, unless that trackday is all well-driven supercars you are going to be sitting there waiting to pass half the day instead of actually getting to drive it flat out. Suggested by golfball F=M*A. And that's the issue. Cars have gotten bigger and heavier, distractions have increased and cars while safer for the occupants, it hasn't for anyone in the area. So while a small sports car will hurt/kill the driver if things go horribly wrong, a gigantic SUV going at high speed could take out several other vehicles, pedestrians or both. So short answer is, depends greatly on the vehicle and environment. Suggested by Drg84 Corvette Zr1, the new one. It'd be wise for chevy to pull a dodge and make buyers sign wavers saying 'Don't sue us because we basically killed you, but you were dumb enough to buy it.' Suggested by Noturbestfriend If the car is 1mph faster than your reflexes, then it is too fast for you. I've seen eighty year olds competent to drive a hellcat, and thirty year olds I wouldn't trust with a Geo because it is too fast for them. It is impossible to say what is too fast, but as a general rule of thumb; For most of us I'd say that once you start getting up to sixty-five/seventy-five mph, the number of people competent enough to drive beyond that speed drops off a cliff. There are probably only a few handfuls of drivers in America who are truly competent, even in the most modern car, of driving at over 100mph. I'm not one of them, that is all I know. Suggested by skeffles Wasn't there an episode of Top Gear where Clarkson went to Japan to test drive a GTR, and it was limited until it got to a track, then all sorts of magic technology went to work? I hate nannys, but being able to do 160 down I80 is just asking for trouble. Is there a hard limit? No. I'll admit, on two wheels I've really exceeded the limit. Pulling a trailer, no. Some jacked up jeep/SUV/truck with too oversized tires hanging out over the fenders where the handling is off should have some sort of nanny. It's a fine line between 'my freedomz' and driving is a privilege, not a right. Suggested by McKooglyll For the latest news, Facebook, Twitter and Instagram.
