In a bid to harness the economic strength of Nigerians in diaspora, the Central Bank of Nigeria rolled out the Non-Resident Bank Verification Number initiative for millions of citizens living abroad. Since its launch in May 2025, the policy has helped boost BVN enrollments by 2.7 million. With a $1bn monthly remittance target, the NRBVN appears key to the CBN’s strategy to deepen financial inclusion and strengthen foreign exchange inflows, OLUWAKEMI ABIMBOLA writes

The Central Bank of Nigeria recently took steps to expand financial services access with the launch of the Non-Resident Biometric Verification Number policy. The NRBVN platform, launched in collaboration with the Nigeria Inter-Bank Settlement System in May 2025, marked a transformative step in enabling Nigerians living overseas to obtain a Bank Verification Number remotely.

With this system, Nigerians can access banking services from anywhere, saving time and travel costs while ensuring safe and secure transactions. The eNRBVN platform is equipped with robust Know Your Customer and Anti-Money Laundering frameworks, ensuring both compliance and security while enabling broader participation in Nigeria’s financial ecosystem.

The NRBVN is a key component of a broader framework that includes the Non-Resident Ordinary Account and the Non-Resident Nigerian Investment Account. Combined, these solutions will provide Nigerians in the diaspora with greater access to savings, mortgage facilities, pensions, insurance products, and investment opportunities in the Nigerian capital market while maintaining the flexibility to repatriate returns under existing financial regulations.

Since the launch, the Nigeria Inter-Bank Settlement System data indicated that the number of Nigerian bank account owners linked to BVN has risen. BVN enrolment rose by 2.7 million between December 2024 and July 2025 to 66.2 million.

The Bank Verification Number project, which captures the uniqueness of every bank customer, is an innovative project introduced into the financial system by the Central Bank of Nigeria. The CBN introduced the BVN to safeguard bank customers, mitigate fraud, and bolster the Nigerian banking system’s resilience on February 14, 2014.

The BVN scheme gives each bank customer a unique identifier and has continued to revolutionise the banking and payment systems while ensuring the safety of depositors’ funds. The project is now witnessing an enrollment surge, as the Olayemi Cardoso-led CBN continues to take strategic steps to advance financial inclusion in the country.

On the financial inclusion front, the apex bank’s effort to boost inclusion has been yielding fruits, as indicated by the latest Access to Finance survey report presented by Enhancing Financial Innovation and Access, which revealed that despite challenging macroeconomic headwinds, Nigeria’s formal financial inclusion improved to 64 per cent in 2023 from 56 per cent recorded in 2020. The growth in financial inclusion in 2023 was mainly fueled by marginal growth in the banking population and growth in the use of non-bank financial institutions (such as fintechs), which rose to 12 per cent in 2023 from five per cent in 2020.

Following the unveiling of the NRBVN in Abuja, the CBN boss directed Nigerian banks to proactively develop and offer products specifically tailored to meet the unique needs and preferences of the diaspora community. The NRBVN launch is seen as a major step to keep remittance inflows to the country soaring and dollar liquidity strong as the CBN eyes a $1bn monthly remittance target.

At the launch of the NRBVN, the CBN governor, Cardoso, had explained that offering innovative and attractive financial solutions can greatly enhance diaspora participation, deepen financial inclusion, and significantly boost remittance inflows. The CBN boss maintained that the NRBVN is more than just a one-time initiative, as it forms the foundation of the apex bank’s broader digital transformation strategy aimed at improving and expanding access to financial services for Nigerians globally.

He said, “Over the past year, our policy frameworks have undergone extensive refinements, informed by sustained dialogue with International Money Transfer Operators. The introduction of the willing buyer, willing seller regime, licensing of additional IMTOs, and market reforms that have facilitated currency convergence are notable examples. Consequently, remittance flows through official channels have risen markedly, from $3.3bn in 2023 to $4.73bn last year.

“With the introduction of NRBVN and complementary policy measures, we are optimistic about achieving our ambitious target of $1bn in monthly remittance flows, a goal we believe is entirely achievable given the growing trust and convenience in formal remittance channels”.

Cardoso explained that a fully connected system will ensure that every Nigerian in the diaspora can confidently contribute to national development through trusted and cost-effective channels. He emphasised that the launch was not the final destination, but the beginning of a broader journey.

“The NRBVN is a dynamic initiative, one that will continue to evolve in response to the needs of its users. It presents a unique opportunity to learn, to innovate, and to adapt. We encourage all stakeholders to engage actively, share insights, and help shape a system that serves millions of Nigerians across geographies and generations. The NRBVN is not just a tool; it is a bridge between Nigeria and its global citizens,” he said.

Cardoso maintained that to meet the target of the initiative and drive diaspora remittance, collaboration and compliance with established regulatory frameworks remain essential. “All stakeholders must adhere strictly to the FX Code and other relevant regulatory guidelines. This is critical to ensuring market stability, integrity, and overall confidence in Nigeria’s financial system,” Cardoso warned.

The CBN boss further invited the IMTOs to integrate with the NRBVN platform as part of a shared vision to build a secure, efficient, and inclusive financial ecosystem for Nigerians globally. Cardoso explained that a fully connected system will ensure that every Nigerian in the diaspora can confidently contribute to national development through trusted and cost-effective channels. He emphasised that the launch was not the final destination, but the beginning of a broader journey.

He reiterated the CBN’s commitment to reducing the cost of remittances, which currently averages over seven per cent in Sub-Saharan Africa, according to World Bank data. Lowering these costs, he stated, will enhance the safety and appeal of formal channels while amplifying the socioeconomic impact of diaspora remittances on Nigerian households and the broader economy.

BVN enrolments surge

The NIBSS data has shown that the number of Nigerian bank account owners linked to BVN hit 66.2 million at the end of July 2025. This is higher than the 64.8 million recorded in January 2025 and 63.5 million as of December 2024. The data showed that 2.7 million new BVN enrolments were recorded between December 2024 and July 2025.

Further analysis of the NIBSS data showed that as of 2021, 51.9 million accounts were linked to BVN, it rose to 56 million in 2022, and 60.1 million in 2023, and closed 2024 at 63.5 million.

FX inflows via IMTOs

The value of foreign exchange inflows to the economy through the IMTOs rose sharply in 12 months to $4.76bn, the apex bank’s quarterly statistical bulletin showed.

The report, which covered inflows in 2024, represents a significant 44.5 per cent increase from the $3.30bn recorded in 2023. The IMTO inflows continue to be a vital source of foreign currency for Nigeria, supporting families, businesses, and the broader economy amid ongoing FX market challenges. The year began with a strong performance in January 2024 as inflows surged 32.5 per cent year-on-year to $390.86m, compared to $295.21m in January 2023. This early momentum was maintained in February, with inflows increasing by 67.3 per cent, rising to $326.91m from $195.23m the previous year.

March continued the positive trend, with IMTO inflows hitting $363.76m in 2024, up 30 per cent from $279.79m in March 2023. April saw a leap, with inflows reaching $466.11m, an 83.3 per cent increase from April 2023’s $254.26m, marking the highest year-on-year percentage growth in the first half of the year.

May recorded inflows of $404.75m in 2024, a 45.3 per cent rise compared to $278.54m the year before. June was a relatively flat month-on-month but still strong year-on-year, with inflows at $389.79m up 40.2 per cent from $278.04m in June 2023. July and August were the standout months for IMTO inflows, posting the highest volumes of the year. In July 2024, inflows jumped to $552.94m, more than double the $240.35m recorded in July 2023, representing a 130 per cent year-on-year increase.

August maintained this peak momentum with inflows rising to $585.21m, a 116 per cent increase from $271.24m in August 2023. These two months alone accounted for nearly a quarter of the total inflows for the entire year, highlighting their critical role in Nigeria’s FX ecosystem.

The final four months of 2024 showed a mixed pattern of inflows, reflecting broader economic uncertainties and seasonal effects. September recorded $336.61m in IMTO inflows, up 40.8 per cent from $238.98m in the same month of 2023.

October’s inflows rose modestly to $378.85m, a 29.1 per cent increase year-on-year. However, November saw a sharp decline, with inflows dropping by 22.1 per cent to $252.28m from $324.20m in November 2023.

December ended the year on a more positive note, with inflows rebounding to $316.59m, a 9.1 per cent increase compared to $348.33m in December 2023. The surge in IMTO inflows is closely tied to the reforms introduced by the CBN under Governor Cardoso since his assumption of office in September 2023.

Importance of diaspora remittances

The Chairman of the Nigerians in Diaspora Commission, Abike Dabiri-Erewa, has described Nigerians in diaspora as a powerful force and a major driver of the Nigerian economy.

Dabiri-Erewa stated, “We’ve reached a stage where the diaspora has proven to be a powerful resource, and we cannot ignore them. They are the number one ambassadors of our country. They will help us change the narrative of Nigeria.”

She noted that the 17 million Nigerians abroad have sent back home billions of dollars in the last five years, and “in December, the amount spent coming to Nigeria was not less than N60bn. This could grow, but we are just scratching the surface,” Dabiri-Erewa.

Highlighting the importance of diaspora remittance, the President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, said these remittances served as a lifeline for the recipients’ household as they are spent on health, nutrition, education, and social needs.

The World Bank has also revealed that in certain cases, the remittances are higher than both Foreign Direct Investment and foreign aid to the economy and are cheaper sources of funds.

Gwadebe said that remittances can be used for infrastructural developments, as seen in India and Lebanon, while in Dubai, United Arab Emirates, the remittances are a stable source of liquidity in the foreign exchange market. The remittances, he added, can also serve as an excellent source of investment funds in the economy.

In a report titled ‘Diaspora remittances: The power behind Africa’s sustainable growth,’ Regional Vice President of Africa at Western Union, Mohamed Touhami el Ouazzani, said remittances may be measured through the movement of money, but their real impact is measured in lives changed.

He disclosed that in 2023 alone, $90bn flowed into Africa from its global diaspora, an amount that rivals the Gross Domestic Product of some nations. He said that remittances symbolise deep ties that keep communities connected across borders.

“Families with a breadwinner working abroad depend on these funds to provide vital support for day-to-day needs. They also build the foundation for broader financial stability.

“Beyond their immediate impact, remittances are powerful drivers of economic change. They fuel infrastructure development, spur entrepreneurship, and promote financial inclusion – all essential for long-term economic development. Ghana’s National Financial Inclusion and Development Strategy is simplifying access to remittances, while countries like Kenya, Ethiopia, and Nigeria are tapping into diaspora bonds to fund infrastructure and other national projects,” he added.

As the CBN deepens its push for financial inclusion and foreign exchange stability, the Non-Resident BVN initiative stands out as a critical enabler for diaspora engagement. However, sustaining this momentum will require continued collaboration between regulators, banks, fintechs, and diaspora communities. By building trust, maintaining regulatory compliance, and ensuring ease of access, the CBN can turn this digital innovation into a long-term asset for economic resilience and inclusive growth.