Central Bank of Nigeria Introduces Digital System to Release $1 Billion Monthly in Remittances
The Central Bank of Nigeria (CBN) has unveiled the Non-Resident Bank Verification Number (NRBVN) platform, a digital initiative designed to increase formal remittance flows and enhance financial inclusion for Nigerians living abroad.
Through the NRBVN, Nigerians can now obtain their Bank Verification Number (BVN) remotely, eliminating the need for costly and inconvenient travel for physical verification. This remote BVN registration process allows Nigerians overseas to securely access Nigerian banking services from anywhere in the world, using robust biometric and Know Your Customer (KYC) verification processes.
Key benefits of the NRBVN platform include:
- Remote BVN registration: Nigerians abroad can now register online for a BVN, a required identity number for banking and financial transactions. This remote process removes prior barriers related to physical presence and high costs.
- Access to diverse financial products and services: With the NRBVN, Nigerians can open domiciliary accounts in foreign currencies (USD, GBP, EUR), access savings, mortgage facilities, pensions, insurance, and investment opportunities within Nigeria’s capital market while complying with existing financial regulations.
- Secure and compliant financial transactions: The platform incorporates strong security measures with biometric verification and anti-money laundering (AML) frameworks, ensuring safe and trustworthy transactions for remittances and investments.
- Boosting formal remittance inflows: By simplifying the process and increasing trust in formal channels, the NRBVN aims to increase remittance receipts, with a target of $1 billion in monthly remittances. Formal remittance flows have already grown from $3.3 billion in 2023 to $4.73 billion in 2024, and the NRBVN platform is expected to accelerate this growth further.
- Promoting financial inclusion and economic growth: The initiative broadens the financial ecosystem's reach, integrating the diaspora fully into Nigeria’s economy, supporting informal sector financing, and fostering national development through accessible and affordable financial services.
The CBN emphasizes that the NRBVN is a dynamic platform intended to evolve with stakeholder engagement—including banks, fintechs, and international money transfer operators—to build a secure, inclusive, and efficient financial infrastructure connecting Nigeria’s diaspora to the home economy.
With the launch of the NRBVN platform, Nigerians in the diaspora can now seamlessly access services like mortgages and pensions, and can also open Non-Resident Ordinary Accounts (NROA) and Non-Resident Nigerian Investment Accounts (NRNIA). The initiative encourages the diaspora not just to send money, but also to invest, with investment repatriation now allowed.
As of 2024, diaspora Nigerians contributed $4.73 billion in formal remittances, an increase from $3.3 billion in 2023. The NRBVN platform aims to increase formal remittances to a $1 billion monthly inflow. CBN Governor Olayemi Cardoso stated that the initiative would deepen financial inclusion and build trust in formal remittance channels.
[1] Central Bank of Nigeria (2024). Non-Resident Bank Verification Number (NRBVN) Platform. Retrieved from https://www.cbn.gov.ng/nrbvn [2] Nigeria Inter-Bank Settlement System (2024). NRBVN Partnership. Retrieved from https://www.nibss.org/nrbvn-partnership [3] World Bank (2024). Remittances to Sub-Saharan Africa. Retrieved from https://remitscopes.worldbank.org/country/sub-saharan-africa [4] International Finance Corporation (2024). Financial Inclusion in Nigeria. Retrieved from https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/industry/financial-services/financial-inclusion/regions-and-countries/africa/nigeria [5] Nigerian Economic Summit Group (2024). Diaspora Engagement and Investment. Retrieved from https://www.nesg.org.ng/diaspora-engagement-and-investment
- The introduction of the NRBVN platform in Nigeria's finance sector signifies a significant step in the business domain, as it allows Nigerians abroad to invest in various financial products and services, such as mortgages, pensions, and investment opportunities, using advanced technology for secure and compliant transactions.
- The collaboration between the Central Bank of Nigeria, banks, fintechs, and international money transfer operators on the NRBVN platform demonstrates a strategic move to leverage technology, enhance financial inclusion, and drive economic growth, particularly by boosting formal remittance flows and fostering investments from the diaspora.
