In a bid to enhance financial inclusion for Nigerians living abroad, the Nigerian Inter-Bank Settlement System (NIBSS) is gearing up to unveil a novel non-resident Bank Verification Number (BVN) platform in December 2024. This innovative platform is designed to facilitate the seamless operation of local bank accounts, business activities, and resolution of Know Your Customer (KYC) issues for Nigerians globally, without the need for their physical presence.
The announcement was made by Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), during a gathering with the Nigerian diaspora at the World Bank and International Monetary Fund (IMF) summit in Washington D.C. Cardoso highlighted that this initiative is a crucial part of the CBN’s ongoing efforts to ensure that Nigerians, regardless of their geographical location, can fully engage with the nation’s economy.
Traditionally, Nigerians living overseas have been required to undergo in-person biometric verification to obtain a BVN, often necessitating travel to specific locations where NIBSS-licensed third-party services, such as OIS Services, VFS Global, or Avantech Services, operate. This process incurs a fee of approximately $45, presenting a significant inconvenience and barrier to financial access.
Addressing this issue, Cardoso expressed that it is both unnecessary and unacceptable for Nigerians abroad to encounter difficulties in accessing financial services and conducting business in their home country. He assured that the introduction of the non-resident BVN platform in December will significantly simplify financial inclusion for the diaspora community.
This digital initiative is set to revolutionize KYC procedures, making it more affordable and convenient for Nigerians living abroad to interact with their local banking institutions. The project, which is being rolled out in collaboration with various Nigerian banks, aligns with the CBN’s objective of promoting financial inclusion across the board.
Moreover, this development is a key component of the CBN’s broader strategy to integrate the Nigerian diaspora into the financial system, especially in the realm of international remittances. Earlier in 2024, the CBN issued licenses to several International Money Transfer Operators (IMTOs) to enhance formal remittance channels. Despite Nigeria recording the highest remittances in Africa at $19.55 billion in 2023, a significant portion of these funds were transferred through informal channels.
The CBN’s efforts to redirect remittances through official channels have begun to yield results, with monthly inflows via formal routes now exceeding $550 million, a substantial increase from previous figures. The goal is to achieve $1 billion in monthly remittances through official means, with the non-resident BVN platform playing a pivotal role in this financial integration strategy. This platform is poised to simplify access to financial services for Nigerians in the diaspora, potentially enhancing remittance flows and investments into the Nigerian economy.
