Connecting Nigerians Abroad With The New BVN Platform and Its Role in Financial Inclusion

Great news for Nigerians living outside the country! The Nigerian Inter-Bank Settlement System (NIBSS) is set to launch a new Bank Verification Number (BVN) platform in December 2024. This new system will make it much easier for Nigerians abroad to manage their bank accounts back home.

For a long time, Nigerians living abroad have struggled with accessing their local bank accounts. They often had to deal with complicated processes and third-party services, paying around $45 just to get a BVN. Plus, many had to travel long distances for in-person verification. It was a hassle that made it hard for them to participate in Nigeria’s economy.

But now, this new platform will change all of that. With this system, Nigerians living abroad can verify their identities online without needing to be physically present. They’ll be able to run their businesses, manage their money, and sort out any KYC (Know Your Customer) issues from anywhere in the world. This is a big step forward that shows the Nigerian government understands the needs of its citizens living outside the country.

So, why is this happening now? One reason could be the huge amount of money Nigerians abroad send back home—about $19.55 billion in remittances in 2023! However, almost half of that money goes through unofficial channels. By making banking easier for Nigerians abroad, the government hopes to encourage more people to use official banking services.

The new BVN platform will also play a crucial role in shaping financial inclusion in Nigeria. By simplifying the process for diaspora Nigerians, it opens up opportunities for them to engage more fully with the Nigerian banking system. For example, with easier access to banking, they could send money back home in Naira rather than relying solely on dollars. This change could streamline remittance flows, making it simpler for Nigerians to support their families without dealing with currency conversion hassles.

Imagine being able to send money directly to a family member in Nigeria in Naira, bypassing the complexities of international transfers and currency fluctuations. This could not only make remittances cheaper and more straightforward but also help stabilize the local economy by encouraging the use of the Naira. It might even lead to a stronger connection between diaspora communities and their home country.

Governor Yemi Cardoso pointed out that it’s simply not fair for Nigerians abroad to face these challenges. This new platform will help make financial services more accessible and could lead to more investment in Nigeria’s economy.

As we look forward to the launch in December, it’s worth asking how well this new platform will actually work. Will it really make things easier for Nigerians abroad, or will there still be some problems to deal with? And what about those who are used to sending money through informal channels? Change can be tough, but we’re hopeful this new system will make things better.

The CBN is taking important steps to connect Nigerians abroad with the financial system back home, and that’s something to be excited about. This push for financial inclusion is all about giving Nigerians everywhere a chance to succeed.