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The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has unveiled plans to introduce a Bank Verification Number (BVN) platform by December 2024. This is tailored for Nigerians living abroad. The platform will be launched by the Nigerian Inter-Bank Settlement System (NIBSS), a CBN subsidiary. It aims to improve financial access and inclusion for the diaspora community.
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Cardoso, alongside the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, shared the announcement during an interactive session with foreign investors at the ongoing IMF/World Bank Annual Meetings in Washington, DC. The officials assured investors that recent reforms initiated by the Nigerian government are gradually restoring confidence in the nation’s economy.
BVN is mandatory to open and operate a bank account in Nigeria
The BVN is an 11-digit unique identifier introduced by the CBN on February 14, 2014. It is required to open and operate a bank account in Nigeria. With over 61.47 million enrollments recorded as of April 2024, the BVN system has strengthened the banking sector. It has also protected customers, and helped reduce fraud.
The new platform will allow Nigerians in the diaspora to operate local bank accounts. They will be able to manage businesses, and resolve Know-Your-Customer (KYC) requirements from anywhere in the world. The initiative is part of the CBN’s commitment to ensuring that Nigerians, regardless of their location, can participate in the nation’s economy.
“As far as we are concerned, it is totally unacceptable that you should be out here and experience difficulties in operating your accounts or conducting business in your home country,” Cardoso said. “Starting in December 2024, Nigerians in the diaspora will no longer need to travel long distances for physical biometric verifications to access financial services.”
Non-resident BVN platform would enhance KYC processes
The launch of the non-resident BVN platform would enable enhanced KYC processes remotely. Ultimately, this will make it more convenient and cost-effective for the diaspora to engage with the Nigerian banking system. “This initiative, in collaboration with our banks, marks a significant step towards greater financial inclusion. It enhances accessibility as we continue to roll out innovative solutions,” Cardoso stated.
Meanwhile, the International Monetary Fund (IMF) has urged Nigeria and other African nations to enhance their tax systems. The IMF wants a system more efficient, equitable, and progressive to support economic growth and development.
