The Nigerian Inter-Bank Settlement System (NIBSS) is set to launch a non-resident BVN (Bank Verification Number) platform by December 2024. This platform aims to simplify access to local banking for Nigerians living abroad. It will allow them to manage local accounts, conduct business, and resolve Know Your Customer (KYC) issues. This will now be possible without having to leave their countries of residence.
Central Bank of Nigeria (CBN) Governor Yemi Cardoso revealed this development during a meeting with the Nigerian community at the World Bank and IMF summit in Washington D.C. He stressed that this initiative ensures all Nigerians can fully engage in the nation’s economy, regardless of location.
Simplifying Banking for the Diaspora
The new platform eliminates the need for in-person biometric verification, which previously forced Nigerians abroad to travel long distances. Currently, the only option is to register with NIBSS-licensed third-party services, like OIS Services or VFS Global, available in limited locations. The process often costs about $45, posing a burden for many.
Cardoso emphasized that it’s unnecessary for Nigerians abroad to face such obstacles in accessing local banking services. The non-resident BVN platform will be a game-changer by providing a seamless, digital solution for KYC processes.
Financial Inclusion at the Core
This initiative aligns with the CBN’s broader strategy to promote financial inclusion. By working with Nigerian banks, the new platform will not only enhance access to local banking but also streamline remittance processes. Earlier in 2024, the CBN licensed several International Money Transfer Operators (IMTOs) to formalize remittance channels.
In 2023, Nigeria received $19.55 billion in remittances, making it the highest in Africa. However, around 50% of these inflows were handled through unofficial channels. With more than $550 million now flowing through official remittance routes monthly, the CBN aims to increase this figure to $1 billion. The non-resident BVN platform is expected to be a vital part of this effort, encouraging investment and boosting Nigeria’s economy.
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