Market News

BY Taofeek Oyedokun 

For decades, millions of Nigerians living abroad have juggled dual identities, building lives in foreign lands while maintaining strong emotional and economic ties to home. Yet, one major hurdle persisted: access to Nigeria’s formal financial system. From sending money to loved ones to investing in real estate or stocks, the road was often clogged with bureaucracy, high costs, and lengthy verification processes.

But a quiet revolution may have just begun in Abuja.

When the Central Bank of Nigeria (CBN) unveiled the Non-Resident Biometric Verification Number (NRBVN) platform, it wasn’t just another digital tool added to the country’s financial infrastructure. It was a signal, bold and intentional, that Nigeria’s apex bank is ready to walk the talk on inclusive finance, not just for those within its borders, but for its diaspora scattered across continents.

Developed in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), the NRBVN is a digital gateway designed to make accessing banking services from abroad as seamless as possible. From opening accounts to transferring funds, it simplifies the complex and reaffirms CBN’s commitment to inclusive growth and innovation.

For Olayemi Cardoso, CBN governor, this platform represents more than just technological progress, it is about empowerment.

“Our NRBVN platform is designed to offer more than access, it is about opportunity,” he said during the launch event. “It presents a unique opportunity to learn, to innovate, and to adapt… The NRBVN is not just a tool; it is a bridge between Nigeria and its global citizens.”

A costly barrier comes down

Historically, acquiring a Biometric Verification Number (BVN), a requirement for banking in Nigeria, meant physical presence at a registration centre. For Nigerians abroad, especially those in remote locations, this came at a steep price in both time and money.

Cardoso acknowledged this reality. “Nigerians in the diaspora have faced significant hurdles when seeking access to financial services such as payments, savings, loans, insurance, and pension products in Nigeria,” he said.

Now, those hurdles are being dismantled.

With NRBVN, Nigerians anywhere in the world can securely complete their verification online, enabled by robust Know Your Customer (KYC) protocols. That’s not just convenience, it’s transformation. It opens doors to a full suite of services, from regular banking to investment opportunities, without crossing an ocean.

Borrowing from global playbooks

Cardoso and his team didn’t design the NRBVN in a vacuum. The initiative draws inspiration from other countries that have successfully turned their diasporas into engines of economic vitality.

“In developing this solution, we draw valuable lessons from countries such as India and Pakistan,” he noted.

India’s Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts, for instance, have drawn in about $160 billion in diaspora deposits by offering attractive products tailored to non-residents. Pakistan’s Roshan Digital Account has onboarded non-residents entirely online and has attracted nearly $10 billion in just a few years.

These cases underscore the potential of digital financial inclusion, not merely as a matter of access, but as a means of engagement and capital mobilisation.

Beyond banking: Building a framework for investment

CBN’s vision goes beyond just allowing Nigerians abroad to send money home. The NRBVN is part of a broader package that includes the Non-Resident Ordinary Account (NROA) and the Non-Resident Nigerian Investment Account (NRNIA). These products are tailored to help the diaspora invest in Nigeria’s growing debt and equity markets, mortgages, insurance, and pensions.

“Diasporans will have access to a variety of growing investment opportunities,” Cardoso explained, emphasising that proceeds can be fully repatriated under existing regulations. “This ensures confidence and convenience in managing their assets.”

It’s an invitation for Nigerians abroad not just to remit money, but to become active stakeholders in the country’s economic narrative.#

A call to banks and the market

But the burden doesn’t rest on the CBN alone. Cardoso was clear: Nigerian banks must step up.

He urged them to “proactively develop and offer products specifically tailored to meet the unique needs and preferences of the diaspora community.” By doing so, he said, banks can enhance diaspora participation, deepen financial inclusion, and significantly increase remittance inflows.

These policy shifts are already bearing fruit. According to Cardoso, formal remittance flows rose from $3.3 billion in 2023 to $4.73 billion last year, buoyed by reforms like the willing-buyer, willing-seller FX model and the licensing of more International Money Transfer Operators (IMTOs).

With continued collaboration, CBN is targeting an ambitious milestone: $1 billion in monthly diaspora remittances.

IMTOs on board

To hit this mark, IMTOs will have a key role. Cardoso called on them to integrate with the NRBVN system, reinforcing a shared commitment to creating a secure and inclusive financial ecosystem.

“The NRBVN is a dynamic initiative, one that will continue to evolve in response to the needs of its users,” he said, encouraging all stakeholders to help shape its future through feedback and collaboration.

One crucial objective? Reducing remittance costs, which currently average over 7% in Sub-Saharan Africa. Lowering these costs will amplify the impact of diaspora funds, both at the household and macroeconomic levels.

Looking back to move forward

Nigeria’s journey toward financial inclusion has been long and often uneven.

In 2008, about 53% of Nigerian adults were excluded from financial services, according to a survey by Enhancing Financial Innovation and Access (EFInA). That figure dropped to 46.3% by 2010, catalysing the launch of the National Financial Inclusion Strategy in 2012. The goal? Slash the exclusion rate to 20% by 2020.

It was an ambitious plan: expand access to payment services from 21.6% of adults to 70%, savings from 24% to 60%, and credit from 2% to 40%. Insurance and pensions were also targeted for massive expansion.

While those targets have not been fully achieved, they laid the foundation for the digital strides of today, including the NRBVN. And EFInA remains clear: “An inclusive financial sector is characterised by diversity… and a legal and regulatory environment that ensures the integrity of the system and access for all.”

Tapping the $240 billion giant

The potential is enormous. Nigeria’s informal sector alone is estimated at $240 billion, largely untapped, often undocumented. Channeling even a fraction of the funds circulating in the informal and diaspora sectors into the formal economy could be transformative.

Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria, underlined this point. He described diaspora remittances as “a crucial source of foreign exchange for Nigeria,” complementing foreign direct and portfolio investments.

“The CBN’s initiatives have supported continued growth in these inflows,” Gwadabe said, pointing to their alignment with broader goals like FX market confidence, inclusive banking, and price stability.

Mohamed Touhami el Ouazzani, Western Union’s tegional VP for Africa, drove the point home. “Remittances may be measured through the movement of money, but their real impact is measured in lives changed,” he said. In 2023 alone, $90 billion flowed into Africa via diaspora remittances.

These funds support families, fuel entrepreneurship, and fund infrastructure. And now, with the NRBVN in place, Nigeria is positioning itself to capture a larger share of that impact, securely, inclusively, and sustainably.

As Cardoso rightly said, “Today’s launch is not the final destination, but the beginning of a broader journey.”

And for millions of Nigerians abroad, it’s a journey that finally feels within reach.