The news:
- The Nigerian Inter-Bank Settlement System (NIBSS) is set to launch a new non-resident BVN (Bank Verification Number) platform in December 2024.
- This initiative will enable Nigerians living abroad to operate their local bank accounts, run businesses, and resolve Know Your Customer (KYC) issues from any location globally.
- Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), announced the development during a meeting with the Nigerian community at the World Bank and International Monetary Fund (IMF) summit in Washington D.C.
He emphasised that the platform is part of ongoing efforts to ensure that all Nigerians, irrespective of location, can participate fully in the country’s economy.
The new platform will allow diaspora Nigerians to bypass the need for in-person biometric verification, which has previously required travelling long distances.
At the moment, Nigerians abroad have to register with NIBSS-licenced third-party services like OIS Services, VFS Global, or Avantech Services — available only in limited locations — where they have to pay around $45 to obtain a BVN.
Cardoso said it’s unnecessary and unacceptable for Nigerians abroad to face hassles in accessing their financial services and doing business in their country of origin.
The apex bank governor promised that starting in December, the launch of the non-resident BVN platform will make financial inclusion easier for the diaspora.
This digital solution will streamline KYC processes, making it more cost-effective and accessible for Nigerians abroad to engage with their local banks.
In collaboration with various Nigerian banks, this initiative aligns with the CBN’s goal to promote financial inclusion.
This move is part of the CBN’s broader strategy to integrate Nigerians in the diaspora into the financial system, particularly regarding international remittances.
Earlier in 2024, the CBN granted licenses to several International Money Transfer Operators (IMTOs) to facilitate formal remittance channels.
Give it a try, you can unsubscribe anytime. Privacy Policy.
Nigeria recorded $19.55 billion in remittances in 2023, the highest in Africa, but up to 50% of these inflows were processed via unofficial channels.
Efforts to discourage such informal remittance routes have started to pay off, with official remittance channels now reporting more than $550 million in monthly inflows, double the previous amount.
The CBN is targeting $1 billion in monthly remittances through official means using IMTOs, making the non-resident BVN platform a key part of this financial integration strategy.
This platform promises to ease access to financial services for diaspora Nigerians, potentially boosting both remittances and investment in the Nigerian economy.
