206
Remittance Markets in Africa
Figure 7.5 12
Perceptions of Informal RSPs as Competitors 12
10 number of surveyed firms
9 8
6 4
4
3 2 1
1
major obstacle
severe obstacle
0 no obstacle
minor obstacle
moderate obstacle
no response
Source: Author’s compilation from 2008 RSP survey in Nigeria. Note: RSP = remittance service provider.
sector are tangible gift remittances handled through the seaports, airports, individual travelers, and courier companies. These remittances are outside the realm of activities covered by banks and so cannot be effectively classified as competition.
Remittance Fees, Customer Protection, and Identification Requirements Nigeria is primarily an inward remittance corridor; outward remittances using the MTOs are prohibited by monetary authorities. Thus, for remittance inflows from outside the country, the fees are usually determined and paid outside the country by remittance senders. In 22 out of the 26 survey responses on the matter, remittance fees were reported to be the exclusive responsibility of the sender. Informal discussions with DMB operators indicated that the charges vary among MTOs and depend on the country of origin, but the DMBs could not specify how much the remittance fees were per country. Recipients in Nigeria merely receive the net amount remitted after the MTO has deducted all charges at the point of sending.