Boo Before Savings: What Users’ Descriptions Tell about Canada-Nigeria Transfers

The cross-border remittance space between Nigeria and Canada is a significant corridor given the substantial Nigerian diaspora in Canada. As one of the fastest-growing remittance platforms, we pulled up the most frequent descriptions that customers use when making transfers. In this article, we share our interesting discoveries and what this reveals about user behavior. Let's dive right in! 

1. School Fees - The Most Common Description

It is no surprise that school fees emerged as the top description for transfers between Nigeria and Canada. Education remains one of the most common reasons for emigration and financial connections between the two countries. Many Nigerians move to Canada to pursue higher education, and Nigerian families often support relatives studying abroad.

Possible Reasons:

• Educational Aspirations: Nigerians highly value education, often seeing it as a critical pathway to better opportunities. Many families prioritize investing in the education of their children, even if it requires sending money abroad to cover tuition and related expenses.
• High Costs of International Education: Tuition fees in Canadian institutions are significantly higher for international students, particularly when compared to local institutions in Nigeria. This drives frequent financial support from families, explaining the dominance of this description.
• Seasonality of School Payments: The academic calendar, which includes the need to pay fees at specific times during the year, creates regular patterns of transfers with “school fees” as the description.

The number one transfer description highlights the emphasis on family support systems, where members assist in alleviating the burden of expensive educational costs. The higher frequency of transfers for school fees demonstrates a strong link between family values, aspirations for higher education, and remittance patterns.

2. Tithe - Religious Obligations Driving Remittances

The presence of tithe as a common description indicates the role religion plays in the lives of many Nigerians. Tithing, a religious obligation in many Christian denominations, involves donating a portion of one’s income, typically 10%, to the church.

Possible Reasons:

• Strong Religious Influence: Nigeria is a deeply religious country, and many Nigerians in the diaspora continue to maintain close ties with their religious institutions at home, contributing regularly.
• Fulfillment of Religious Duties: For many, sending money for tithe represents more than a financial transaction; it is an act of faith and religious devotion, which reinforces their spiritual connection with their community back home.
• Continued Church Membership: Many Nigerians in the Diaspora maintain membership in Nigerian churches even while abroad. This encourages consistent contributions to the church, as they remain spiritually connected to their roots.

This demonstrates how cross-border remittances are not just about meeting financial needs but also maintaining cultural and religious identities. The act of sending money for tithe shows the importance of faith-based commitments among Nigerians abroad.

3. Thrift Contribution - A Reflection of Communal Saving Practices

Thrift contribution, also known as "ajo" or "esusu," refers to a traditional communal saving scheme common in Nigeria. It involves a group of people who regularly contribute money to a common pool, which is then distributed to members on a rotating basis.

Possible Reasons:

• Cultural Practices in Personal Finance: Despite being in a different country, many Nigerians in Canada continue to engage in this communal saving method, maintaining a strong connection to familiar financial systems.
• Trust-Based Financial Networks: Thrift schemes are built on trust and personal relationships. This method allows people to access funds without formal banking procedures, creating a sense of financial security among participants.
• Financial Support System: For many, thrift contributions provide a safety net and a way to manage cash flow and financial emergencies. This may be particularly useful for those in the diaspora managing multiple financial responsibilities both at home and abroad.

Thrift contributions showcase the importance of community-based financial systems for Nigerians, even when they are abroad. It reflects how traditional savings practices adapt to global environments, supporting people in managing finances without solely relying on formal banking systems.

4. For Boo - Emotional Support and Relationships

For boo as a description signals emotional and financial support tied to personal relationships. Many Nigerians living abroad maintain romantic relationships with partners back home, and financial remittances are a form of expressing care and support.

Possible Reasons:

• Sustaining Relationships Across Borders: Long-distance relationships can be financially demanding, especially when one partner is in a more economically stable country like Canada. Sending money is often part of supporting each other emotionally and financially.
• Cultural Expectations: In many Nigerian relationships, financial support is often expected, and sending money becomes a key way to fulfill cultural and social obligations.
• Gifts as Expressions of Love: Beyond basic support, sending money for gifts or special occasions may also be a way for individuals to express love and maintain their bond, especially during holidays, anniversaries, or personal milestones.

This category of remittance highlights the intersection of financial and emotional bonds, revealing how individuals maintain personal connections across borders. Money is not just a means of survival but also a means of fostering relationships.

5. Gift - A Gesture of Care and Appreciation

Gift transfers are not surprising, as gifts have always been a way to express appreciation, celebrate special occasions, or show care for loved ones. This could be for birthdays, weddings, celebrations, or simply a way of helping out family and friends.

Possible Reasons:

• Cultural Norm of Generosity: Gift-giving is an integral part of Nigerian culture, and even when abroad, many Nigerians regularly send gifts back home. These can be in the form of money for special occasions or unexpected acts of kindness.
• Diaspora Generosity: Many members of the diaspora are seen as being in a financially better position, making it common for them to send money as gifts to family or friends in need.

Sending gifts reflects the importance of showing care and fostering personal connections, even when separated by geography. This remittance pattern reflects the role of money in maintaining family ties and social bonds.

6. Savings - The Least Common Description

Interestingly, savings is the least frequent description, despite being a crucial financial practice. This could suggest that fewer individuals explicitly categorize transfers as savings when sending money across borders.

Possible Reasons:

• Other Channels for Savings: Many people in the diaspora may prefer to save in more formalized systems, such as banks or investment platforms, rather than sending money home for savings purposes. This reduces the frequency of “savings” as a description.
• Focus on Immediate Needs: With financial remittances often tied to more immediate expenses like school fees, household support, or emergencies, saving may take a back seat to other priorities.
• Cultural and Financial Practices: People may save through alternative methods, such as thrift contributions or rotating savings schemes, rather than explicitly sending money labeled as "savings."

The lower frequency of savings as a description reflects the prioritization of more immediate or visible financial needs over long-term savings. However, this doesn't necessarily mean individuals are not saving but may suggest other methods of handling savings.

The descriptions used when sending money between Nigeria and Canada offer deep insights into the financial, cultural, and emotional motivations of Nigerians in the diaspora. School fees dominate, reflecting the importance of education and family support. Tithe and Thrift contributions highlight the role of religion and traditional financial systems, while For Boo and Gift reflect emotional and relational commitments. Savings being the least used description may suggest that remittances are primarily focused on immediate needs, with long-term financial planning occurring through other channels. 

This behavior underscores the multifaceted role that remittances play—not just as a tool for financial support, but as a bridge for maintaining cultural values, religious duties, and personal relationships across borders. At Zole we make it our business to understand these patterns so we can tailor our offerings to better meet the specific needs of users within this corridor, ensuring more efficient, relevant, and user-friendly services.