When Olayemi Cardoso assumed office in 2023 as the Governor of the Central Bank of Nigeria (CBN), his reform agenda included key policy initiatives to address the challenges that resulted in the crisis of confidence in the financial system as a result of institutional deficiencies, to restore corporate governance, strengthen regulations, and ensure prudent management of resources.
Also, the reforms were to eliminates series of bottlenecks in the system that posed significant hindrance to Nigerians, particularly those residing outside the country, from participating effectively in the development of the nation’s economy.
Barely 18 months on, these reforms, ranging from the pursuance of orthodox monetary policy tightening to ensure stability in the financial system to the promotion of transparency in the operation of the foreign exchange market to build a stronger and more resilient financial governance system, appear to be exuding a breath of fresh air on the financial system.
As part of the reform agenda, the CBN governor, during a meeting with the Nigerian community at the sidelines of the World Bank and IMF sessions in Washington, DC, in October 2024 hinted at plans by the apex bank in collaboration with the Nigerian Inter-Bank Settlement System (NIBBS) to introduce a non-resident Bank Verification Number (NRBVN) platform by December to enable Nigerians in the diaspora to manage their local bank accounts, conduct business, and meet their Know-Your-Customer (KYC) requirements remotely in conducting financial transactions.
Cardoso said the platform would assist Nigerians to engage seamlessly with the Nigerian economy and expand their business opportunities irrespective of their location in any part of the world.
He described as unacceptable a situation where Nigerians abroad were encountering series of difficulties in operating their accounts or conducting business transactions back home, as a result of their inability to meet certain requirements by the deposit money banks.
One of such hassles Nigerians residing abroad used to face was the requirement for them to travel long distances back to Nigeria to enable them to appear physically at their banks for biometric verifications to access financial services.
Apart from the risk and inconvenience involved in such long journeys back home, those affected usually spend a fortune they could have remitted back for the development of the economy.
The process spelt by the CBN for enrollment for the BVN requires physical presence of the customer at designated enrolment centres, which are often limited in number and operational hours, posing serious challenges for many to complete the process, as it requires a notarized identification and proof of foreign residency.
To fulfill that important requirement by the financial system regulatory authority, Nigerians residing abroad resorted to registering with NIBSS-licensed third-party service providers like OIS Services, VFS Global, or Avantech Services, and paying about $50 to obtain a BVN from banks back home.
The cumbersome procedures not only resulted in avoidable delays in completing crucial banking transactions, like opening of accounts, change of address, signature, renewal of passports or resolving other KYC issues, it also adds to the cost of doing business to bank customers.
Last month, during a fireside chat event at a high-level global forum the CBN hosted in collaboration with JP Morgan and Nigerian Exchange Group (NGX) at the NASDAQ MarketSite in New York ahead of the International Monetary Fund (IMF)/World Bank Spring Meetings in Washington DC, Mr Cardoso reiterated his management’s commitment to restore credibility in the Bank’s operations by removing these cumbersome procedures through orthodox monetary policy, transparency and policy consistency.
Although the December deadline for the unveiling of the platform was delayed, the CBN governor bemoaned the continued suffering of Nigerians abroad in accessing financial services back home due to banks physical verification requirements.
He described as unnecessary and unacceptable for Nigerians abroad to continue to face hassles in accessing their financial services and doing business in their country of origin. Such hassles, he noted, denied those Nigerians the opportunity to participate and contribute to the development and growth of the country’s economy.
At the unveiling of the NRBVN platform last Tuesday in Abuja, the CBN governor said the digital solution would streamline KYC processes by deposit money banks, to make it more cost-effective and accessible for Nigerians abroad to engage with their local banks.
He highlighted the benefits of the NRBVN platform to include the capacity to enhance the KYC processes of deposit money banks, by making it more convenient and cost-effective for Nigerian bank customers in the diaspora to interact and conduct business transactions seamlessly with the Nigerian banking system back home.
Beyond that, he said the platform marks a significant step by the CBN to move the financial system toward greater financial inclusion and accessibility, as Nigeria continues to roll out innovative financial solutions to challenges being encountered by Nigerians living abroad in processing their BVN, which is an essential requirement for accessing banking services back home.
Describing the platform as a game-changer and a major milestone in Nigeria’s financial inclusion journey, the CBN governor said the platform would serve as a critical bridge that connects the country to its global citizens, as it would help expand access to financial services for Nigerians in the diaspora.
“We are building a secure, efficient, and inclusive financial ecosystem for Nigerians globally. This is not just about financial access, it’s about national inclusion, innovation, and shared prosperity.
“Through a secure digital verification and robust Know Your Customer (KYC) processes, Nigerians worldwide should now be able to access financial services more easily and affordably,” Cardoso said.
Reiterating the Bank’s commitment to reducing the high cost of remittances in Sub-Saharan Africa, the CBN Governor said the new platform would ensure continued engagement with stakeholders to optimise its benefits.
“This initiative symbolizes our commitment not only to innovation but also to ensure inclusive growth and economic integration principles that are vital for our nation’s sustained prosperity.
“The mandatory physical verification required for obtaining a BVN often incurred considerable costs in terms of time and financial resources, especially for individuals residing in remote locations. The NRBVN platform addresses these very concerns.
“Through digital verification and robust Know Your Customer (KYC) processes, Nigerians across the globe can now remotely obtain their BVN swiftly and securely.
“This single digital gateway will enable seamless access to banking services, including opening accounts and securely sending funds, dramatically enhancing convenience and reducing costs,” the CBN governor said.
Apart from removing barriers that hindered the ability of Nigerians abroad to obtain a BVN without having to appear physically at their banks in Nigeria, he said the new platform would save time, cut cost, and allow Nigerians residing abroad to secure access to their accounts back home, facilitate easy remittances, and investments.
The CBN governor gave the assurance that the NRBVN, which has a secure digital verification and a robust KYC process, would ensure that Nigerians worldwide have to access financial services more easily and affordably.
Emphasising the importance of the NRBVN as a dynamic platform, Mr Cardoso said stakeholders across the financial ecosystem, including banks, fintech companies, and International Money Transfer Operators (IMTOs), would be encouraged to innovate by integrating and collaborating in shaping and refining the evolving system to expand their user access.
“This initiative will ensure that no matter where they live, Nigerians abroad will stay connected, empowered, and confident in contributing to Nigeria’s economic future,” he said.
In 2023, prior to the ongoing reform initiatives by the current management at the CBN, remittances from Nigerians in the diaspora stood at about $19.55 billion, the highest in Africa. Sadly, the bulk of these remittances were processed through unofficial channels, necessitating the decision by the apex bank to grant operational licenses to several IMTOs in 2024 to facilitate formal remittance channels.
The policy of promoting the use of official remittance channels resulted in the growth in monthly inflows to more than $550 million.
With the recent reform initiatives and policy shifts by the CBN, including the introduction of the willing buyer, willing seller FX regime, Mr Cardoso said remittance flows through formal channels increased from $3.3 billion in 2023 to $4.73 billion in 2024.
The introduction of the NRBVN platform, he pointed out, holds the promise to ease access to financial services for Nigerians in the diaspora, potentially boosting remittances to about $1 billion monthly and significantly enhancing investment in the Nigerian economy through improved convenience and trust.
Amid high remittance costs in Sub-Saharan Africa, the CBN Governor reiterated the Bank’s commitment to driving down those costs, while increasing the value that remittances bring to Nigerian families through the continued engagement with stakeholders to optimise the benefits of the NRBVN platform.
In developing NRBVN platform, Cardoso said valuable lessons were drawn from the experiences in countries such as India and Pakistan.
In India, he said its Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts have significantly simplified banking processes for its diaspora, with Indian banks currently holding approximately $160 billion in diaspora deposits, achieved by providing attractive and tailored products and services.
Similarly, in Pakistan, he said its innovative Roshan Digital Account offer fully online onboarding and investment opportunities, to successfully attract nearly $10 billion since its inception.
The Managing Director/Chief Executive Officer of NIBSS, Mr. Premier Owoh, described the NRBVN platform as part of a broader holistic framework that includes the Non-Resident Ordinary Account (NROA) and Non-Resident Nigerian Investment Account (NRNIA), which together, enable access to savings, mortgages, insurance, pensions, and investment opportunities in Nigeria’s capital markets.
Under the current financial system regulations, Mr Owoh said Nigerians in the Diaspora would retain the flexibility to repatriate the proceeds of their investments, as the NRBVN system has taken cognizance of global standards, by incorporating stringent Anti-Money Laundering (AML) and KYC compliance protocols to ensure the integrity, transparency, and security of Nigeria’s financial system.
Every NRBVN enrollment, he pointed out, must undergo comprehensive verification checks to safeguard against illicit financial activity, therefore bolstering international confidence in the platform and the broader financial ecosystem.
In all, the NRBVN serves as a significant step forward as the CBN strives to create a more inclusive financial ecosystem, ensuring that every Nigerian, regardless of where they reside across the globe, can actively participate in and contribute to the nation’s economic development and growth.
The NRBVN serves as a transformative tool to eliminate the barriers of distance and complexity, paving the way for a more connected and empowered Nigerians community in the diaspora to join the effort to grow the country’s economy.
For the CBN, the platform was meticulously designed to enhance the banking experience for Nigerians in the diaspora, by providing secure, remote access to financial services, simplifying the process of maintaining robust banking relationships, facilitating meaningful investments in Nigeria, and supporting the seamless flow of remittances.
