The Central Bank of Nigeria (CBN) has suspended seven significant limitations preventing Nigerians in the diaspora from reaching bank services in Nigeria. The reforms are manifested through the development of a Non-Resident Bank Verification Number (NRBVN).
The limitations faced by Nigerians in diaspora were the necessity of returning to Nigeria to open an account, or verify their identity. With the NRBVN, both of these steps will be removed. The NRBVN allows for a simple and straightforward digital process for accessing services.
The CBN also addressed the lack of access to Nigerian banks directly. By utilizing the NRBVN, Nigerians in diaspora can now use the service of banking without bearing the burden of technical and regulatory limits.
Investment opportunities were also made easier to access. Citizens in diaspora will have increased access to partake in the Nigerian capital market, pension plans, and real estate schemes in order to allow for more direct ways to invest in the economy.
Further, remittances, Nigeria’s most significant source of foreign cash, will be low-cost and safe. The CBN has made promises through appropriate avenues in order to lower remittance fees and eliminate illicit actions.
Also, banks should proactively work to create banking products for the diaspora, such as savings, loan and mortgage options that fit their financial needs. The policy reform seeks to normalize regulatory systems to provide security and comfort for diaspora Nigerians.
CBN governor Olayemi Cardoso has stated that the policy represents a watershed moment in the expansion of financial inclusion. The NRBVN will provide millions of Nigerians in the diaspora with access to the country’s financial legacy for the future.
The success of the legislation would almost entirely depend on the coordination of banks, fintechs, and remittance companies. Analysts believe that this financial solutions legislation will drive billions of dollars in diaspora investment and modernize the economy.
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