CBN Expands Financial Inclusion with Non-Resident BVN Gateway

Revolutionizing Banking for Nigerians in Diaspora

The Central Bank of Nigeria (CBN) has taken a significant step toward financial inclusion with the launch of its Non-Resident Biometric Verification Number (NRBVN) platform in Abuja. Developed in partnership with the Nigeria Inter-Bank Settlement System (NIBSS), this initiative marks a pivotal moment in Nigeria’s journey toward economic integration and inclusive growth.

Breaking Barriers for Global Nigerians

CBN Governor Olayemi Cardoso emphasized that the NRBVN platform addresses longstanding challenges faced by Nigerians abroad. Previously, diaspora citizens encountered difficulties accessing essential financial services—including payments, savings, loans, insurance, and pensions—due to mandatory physical verification requirements for BVN registration.

“The NRBVN eliminates these barriers through digital verification and robust Know Your Customer (KYC) processes,” Cardoso explained. “Nigerians worldwide can now remotely obtain their BVN quickly and securely, enabling seamless banking services from account opening to secure fund transfers.”

Learning from Global Success Stories

The CBN drew inspiration from international models, particularly India’s Non-Resident External (NRE) accounts which hold approximately $160 billion in diaspora deposits, and Pakistan’s Roshan Digital Account that has attracted nearly $10 billion since launch.

“Our NRBVN platform offers more than access—it creates opportunity,” Cardoso stated. The system complements two other innovative products: the Non-Resident Ordinary Account (NROA) and Non-Resident Investment Account (NRNIA), forming a comprehensive framework to channel diaspora funds into Nigeria’s formal financial system.

Investment Opportunities for Diaspora Nigerians

The new platform provides access to diverse investment options including:

• Debt and equity markets
• Mortgage products
• Insurance and pension plans

Cardoso assured that investors can fully repatriate proceeds in compliance with existing regulations, ensuring confidence in asset management.

Boosting Remittance Flows

The CBN has set an ambitious target of $1 billion in monthly remittance flows, building on recent successes:

• Remittances increased from $3.3 billion in 2023 to $4.73 billion in 2024
• New policies include the willing buyer-willing seller regime
• Additional IMTO licenses have been granted

Call to Action for Financial Institutions

Cardoso urged Nigerian banks to develop tailored products for diaspora customers, emphasizing that innovative financial solutions can:

• Enhance participation
• Deepen financial inclusion
• Boost remittance inflows

The Road to Financial Inclusion

Nigeria’s financial inclusion journey has seen notable progress:

• Exclusion rate dropped from 53% (2008) to 46.3% (2010)
• 2012 National Financial Inclusion Strategy aimed for 20% exclusion by 2020
• Targets included 70% access to payment services and 60% access to savings

Unlocking the Informal Sector’s Potential

With Nigeria’s informal sector estimated at $240 billion, financial inclusion initiatives like NRBVN could transform this “sleeping giant” into a driver of economic growth.

The Bigger Picture: Africa’s Remittance Economy

Mohamed Touhami el Ouazzani, Western Union’s Regional Vice President for Africa, highlighted that $90 billion flowed into Africa from its diaspora in 2023 alone—comparable to some nations’ GDP.

“Remittances change lives,” Ouazzani noted. “They support families, fuel entrepreneurship, and promote financial inclusion—essential for long-term development.”

The CBN’s NRBVN initiative represents a strategic move to harness this potential, connecting Nigeria’s global citizens to opportunities at home while contributing to national development.

Full credit to the original publisher: Daily Trust