By Dayo Omoogun
Just a day ago, the Central Bank of Nigeria in conjunction with the Nigeria Inter-Bank Settlement System (NIBSS) launched the Non- Residents Bank Verification Number platform. Simply put, the NRBVN is the BVN version that is specifically designed for Nigerians in the Diaspora.
Like what operates locally, it is a unique identifier which enables the bank(s) to not only identify but also verify its customers through enhanced Know- Your- Customer standards thereby preventing fraud and safeguarding remittances and investments of the unique number- holders.
One immediate concern that any rational mind will tend to grapple with is the humongous cost that will be involved for the Diasporans to present themselves physically for capturing and associated processes but the good news that also differentiates it slightly from the Resident BVN is that physical appearance is not listed as one of the requirements. The platform that has been put in place enables remote processing of the number. The savings that has been made possible by this is huge to say the least. This is wisdom at play because it will amount to insensitivity and a huge turn- off, indeed a disincentive to the success of the initiative if such was required. With technology, a lot of business transactions including verifications and confirmations are being safely and seamlessly conducted around the globe; this should not be different.
This initiative will, to a large extent, allay the fears and concerns of many of our brothers and sisters abroad who are usually very circumspect about the safety of their remittances and investments back home. With increased confidence and trust, the natural consequence will be increased remittances from existing remitters and a harvest of new believers in the system. Even more interesting is the fact that with accurate KYC information and less likelihood of identity fraud, the Diasporans’ access to credit, loans will be expanded. To make this a reality, alongside NRBVN, the CBN has rolled out Non-Resident Ordinary and Investment Accounts – offering diaspora Nigerians access to debt, equity, mortgage, insurance, and pension products.
This policy is a clear indicator that the apex bank is not resting on its oars in spite of recent streak of laudable achievements which include a favourable balance of payments, an awesome bottom line turnaround from a deficit of N1.3trn to a surplus of N165bn as well as improvement of our external reserves from $36.6bn to $38.8bn.
If the positive and impressive returns that have been propelled by recent policy reforms are anything to go by, then it is very likely that this new development will contribute in no small measure to inspiring much higher remittances and by extension uplifting the national economy. To be sure, it is on good authority that recent policy reforms contributed substantially to the increase in remittance inflows from $3.3 bn to $4.7bn over the 2023/ 2024 period.
In fact the Central Bank of Nigeria is hinging its 1bn dollar per month remittance target largely on the effectiveness of this initiative.
This model has succeeded in other climes particularly in India and Pakistan and there is no reason for it to fail here. There should be no space for the permissive “Nigerian factor”. All it requires is the determination of the apex bank which doubles as the sector regulator to ensure that all players operate within designated boundaries and that penalties and rewards are applied as appropriate.
The CBN must be commended for churning out well- thought out policies and reforms that are not only changing the ugly narratives of the recent past but also redirecting the Nigerian economy on the right track.
Let it also be stated here that the Bank deserves the support of all and sundry to see to the effective delivery of its policies and reforms because in the final analysis, we all are the beneficiaries, directly or indirectly.