Nigeria, a heavyweight in Africa's economic landscape, boasts a remarkable GDP of $441 billion as of 2021, outpacing economies like Egypt and South Africa. This economic prowess is complemented by a vibrant diaspora, with nearly 400,000 Nigerians residing in the United States and an additional 200,000 in the United Kingdom.
The confluence of Nigeria's dynamic economy and its sizable diaspora contributes to a staggering influx of remittances, surpassing £3 billion from the UK alone, equivalent to 1% of Nigeria's GDP.
NALA, the Tanzanian fintech trailblazer, aims to capitalize on this thriving market. Its recent introduction of cross-border payments from the UK and EU to Nigeria marks a pivotal moment in the company's journey. Given that Nigeria constitutes approximately 20% of Africa's total population, this strategic launch holds the key to unlocking significant opportunities, aligning with NALA's mission to enhance economic prospects for Africans worldwide.
Benjamin Fernandes, the visionary founder and CEO of NALA, affirms, "We perceive this expansion as the cornerstone for propelling NALA to emerge victorious on a pan-African scale. This stride will concurrently lead to NALA's substantial investments in Nigeria, including the expansion of local employment opportunities and the establishment of partnerships with indigenous entities such as banks and payout providers."
In this endeavor, NALA is set to face competition from established players like Send by Flutterwave and Lemfi, along with other startups entrenched in the market. Despite the multitude of choices available for international money transfers to Africa, the continent continues to bear the brunt of exorbitant transaction fees. As indicated by World Bank estimates, average transfer fees to Africa stand at approximately 9%.
Furthermore, the existing options often conceal hidden charges that obscure the true cost of remittance. NALA, committed to transparency, is dedicated to addressing this issue.
Boasting licenses in the UK, EU, and US, NALA has also secured approval from the Bank of Tanzania to provide payment systems, enabling seamless integration with banks and mobile money operators like M-Pesa. Notably, NALA's CEO, Benjamin Fernandes, disclosed a substantial $5 million investment in Kenya earlier this year, further solidifying the company's presence in the region, which houses its largest global office.
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