Management expert calls for collaboration over foreign exchange crisis

Management expert,

In multiple reports, the MoneyGram ex-country director, made the call at an international conference where she spoke on hwo the country can improve on its foreign reserve.

In her words, "It is believed that an increased collaboration between the various Diaspora organizations and the formal sectors of government (especially the financial sector) will result in increased foreign exchange inflow from Nigerian Diaspora into the country."

Speaking further, she said, 'The rapid migration of Nigerian professionals which some have termed as “brain drain” has helped in strengthening the income earning patterns of the Nigerians in Diaspora. As a significant portion of the Diaspora community consist of professionals, with access to higher paid jobs, the median income levels continues to rise.'

Giwa explained further that the remittance flow is largely informal, and only collaboration across boards would pull the country out of economic doldrums and set about development.

'This in turn provides secure measures for our growing Diaspora to offer significant opportunities to improve economic development through the remittance market by: Increasing direct investments, improving access to foreign capital markets through investment funds and Diaspora bonds, providing grants for development, establishing contacts to promote trade and investment, increasing demand for a country’s exports, transferring technology,' she said.

She reiterated that remittances have had an impact on Nigeria's economy but it remains an unnoticed area of foreign capital, adding that it could be more beneficial if the money could be invested for long run return.

'Nigerian banks can use remittances (which represent a hard-currency asset for the bank) as collateral as long as it is able to pay out local currency remittances to beneficiaries. The banks need to encourage the recipients to pass the funds through formal channels by reducing cost of transactions and ensuring convenience for receivers,' Giwa advised.