None-Residence Bank Verification Number platform as gateway to financial inclusion
The introduction of the None-Residence Bank Verification Number (NRBVN) platform by the Central Bank of Nigeria (CBN), analysts say will further fast-track the financial inclusion drive of the Apex Bank. In this piece, Omeiza Bilal examine the benefits of the new policy.
The innovative system of None-Residence Bank Verification Number (NRBVN) which serves as gateway for Nigerians in diaspora to be part of their home country’s financial sector without necessarily having to cross the border is something commendable.
Experts say it’s going to strengthen Nigeria’s financial ecosystem.
This well-thought initiative has removed all the bottlenecks Nigerians in diaspora face when they have needs to open an account in the country for remittance and other financial purposes.
The strategy has the potential to expand financial inclusion, increase the diaspora remittance to Nigerian to $1 billion monthly Apex Bank targeted. This would further help to rejuvenate the Foreign Exchange market.
The NRBVN platform is strategic because of the secure digital verification procedure with a robust Know Your Customer (KYC) protocol integrated into the platform that anybody can access financial services, such as insurance, accounts to debt and various investments opportunities in Nigeria’s capital market.
Beyond the numerous benefits of platform, the initiative represents a step toward building confidence in the foreign exchange market. It would also boost the trust and security of verifiable remittance channels in Nigeria financial system, guaranteed credibility and make it a more attractive destination for foreign investment.
This digital innovation marks the broader journey towards inclusivity, it creates more space for Nigerian diasporan population to engage with their financial system.
The NRBVN initiative doesn’t not just guarantee security, it’s designed to meet the financial needs of Nigerians living outside the country with the framework which includes the None-Residence Ordinary Account (NROA) and the None-Residence Nigerian Investment Account (NRNIA). All these platforms make it easier for Nigerians in the diaspora to enjoy financial services of their home country without crossing the border for banking and financial services.
Indeed, the world is becoming more of a global village and Nigeria can’t be left behind. One of the most immediate benefits of the platform is the ability to monitor the inflow of remittances into the country. Diaspora remittances plays a significant role in Nigeria’s economy as issues bordering on the exchange rate is still a major problem leading to instability in the market.
Several measures were taken in the past, such as willing buyers and willing sellers of FX, this initiative shows that the inflow of remittances through official channels are on the upward trajectory from $3.3 billion in 2023 to $4.7 billion in 2024.
With the NRBVN initiative, the Central Bank of Nigeria is optimistic that the new platform will facilitate and further accelerate the use of the platform by meeting the $1 billion monthly target which would boost the country’s GDP and enable local manufacturers to access FX to import their much-needed equipment.
The impact of the NRBVN platform will be crucial to addressing current uncertainties in the economy, including volatility been experience in the exchange rates.
The CBN must equally address the cost associated which may hinder its efforts and it’s expected to maximize the benefit and cost effective.
The collaboration of the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS) is commendable and stakeholders’ engagement will also be key to drive this initiative.
Awareness must be created through media. The priority of CBN has to be a continuous dialogue and engagement by carrying all stakeholders in the sector as well as its foreign partners along.
The Bank must demonstrate commitment to creating a more enabling environment and transparency to enhance the expectations of diverse user.
