The Nigerian Inter-Bank Settlement System (NIBSS) will by December of this year launch a non-resident BVN platform to enable Nigerians in diaspora operate their local bank accounts, run their businesses and sort out KYC issues with financial institutions from anywhere in the world.
The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso announced this during a parley with members of the Nigerian community on the sidelines of the World Bank and IMF meeting in Washington D.C United States.
According to Mr. Cardoso, the initiative is part of efforts to ensure that Nigerians irrespective of their location anywhere in the world can participate in the Nigerian economy without any hassles and diversify their businesses.
He said, “As far as we are concerned it is totally unacceptable that you should be out here and be having hassles in operating your accounts or doing your business in your original country. I want to tell you that starting in December 2024 Nigerians in the diaspora will no longer face the hurdle of traveling long distances for physical biometric verifications to access financial services.”
“The launch of the non-resident BVN platform by NIBBS will enable enhanced KYC processes remotely making it more convenient and cost-effective for the diaspora to engage with the Nigerian banking system. This initiative in collaboration with our banks marks a significant step toward greater financial inclusion and accessibility as we continue to roll out innovative solutions.”
Currently, Nigerians living in the diaspora must register with OIS Services, VFS Global or Avantech services which are only available in a few locations in selected countries and get their BVN done. Also, getting BVN from these platforms which are licensed by the NIBSS comes with a $45 fee. It is not known whether this new NIBSS platform will also carry a fee.
CBN’s efforts to increase diaspora remittances
The CBN has been looking at integrating Nigerians in the diaspora into the Nigerian economy, especially the financial sector and receiving international remittance payments. In May 2024, the CBN granted preliminary licenses to 14 International Money Transfer Operators (IMTOs).
Earlier in the year, the apex bank had granted licences to 62 IMTOs to provide international money transfer services. These are part of efforts to discourage the utilisation of unofficial channels by diaspora Nigerians in sending remittances back home.
In 2023, Nigeria received $19.55 billion in international remittances- the highest in Africa during the period. However, there are reports that up to 50% of remittance inflow into the country comes through unofficial channels- a problem the current CBN leadership is looking to solve.
The CBN also confirmed monthly remittances through official channels using the international money transfer operators “IMTO” have risen to $600 million from $300 million. The apex bank targets $1 billion in monthly remittances.