TheNon-Resident Biometric Verification Number (NRBVN) policy has bolstered the Diaspora Home Remittances through official channels, which stood at $20.93 billion as of 2024. Despite these remittances being a vital lifeline to the economy and a testament to the enduring commitment of the diaspora community to support national development, ENO-ABASI SUNDAY and HELEN OJI write that International Money Transfer Operators (IMTOs) that are key players in the ecosystem are not without dire challenges, including regulatory constraints, cost, and market pressures that hobble the system.
RECENTLY, President Bola Tinubu heaped plaudits on Nigerians in the diaspora for the Diaspora Home Remittances through official channels, which at $20.93 billion in 2024, he said, stood four times higher than the value of Nigeria’s Foreign Direct Investment (FDI) of the same year.
Tinubu, who spoke at the National Diaspora Day (NDD) celebrations and National Merit Award 2025, organised by Nigerians in the Diaspora Commission (NiDCOM) with theme, “Optimising Formidable Diaspora Potentials for National Development and Growth,” stressed: “It is gratifying to note that we have celebrated the achievements of our diaspora annually on July 25th, many of whom are our ambassadors at large uplifting the image of Nigeria in their host countries.
“Nigerians in the diaspora are also actively investing in our healthcare, agriculture, education, Information and Communication Technology (ICT), housing and real estate, sports, transportation, oil and gas and other sectors. This is commendable and in our enlightened self-interest as only Nigerians, both at home and abroad, can develop Nigeria,” said Tinubu, who was represented by the Secretary to the Government of the Federation, Senator George Akume.
Days after the presidential commendations to the country’s diaspora community, the Minister of Foreign Affairs, Yusuf Tuggar, while on a working visit to chairperson of the Nigerians in the Diaspora Commission (NiDCOM) Abike Dabiri-Erewa, was also effusive with praises for the over 17 million Nigerians that are spread across every continent for being “one of the most vibrant in the world.”
Tuggar, who said the diaspora Nigerians comprising “doctors, engineers, entrepreneurs, academics, athletes, creatives, and leaders in their fields, in 2024 alone remitted from abroad over $20 billion. This represents a vital lifeline to our economy and a testament to the enduring commitment of our diaspora to national development… Their successes open doors for others, change perceptions, and build goodwill for Nigeria across borders,” he said.
Non-Resident Biometric Verification Number as a gamechanger
AT a time when the volume of FDI has been ebbing considerably, enough has not been said of the role played by the Non-Resident Biometric Verification Number (NRBVN) policy in making for the seamless raising of the amount of foreign remittances.
For decades, millions of Nigerians living abroad battled dual identities, building lives in foreign lands while maintaining strong emotional and economic ties to home, but the Central Bank of Nigeria (CBN’s) inauguration of the NRBVN is not only fast-tracking things and expanding financial services access beyond the country’s shores, it is also giving Nigerians in the Diaspora an opportunity to invest and carry out banking activities at home while residing abroad.
Among other things, the NRBVN platform is created to ensure that more Nigerians in the diaspora have access to financial services at home, and data from the Nigeria Inter-Bank Settlement System (NIBSS) already show that the number of Nigerian bank account owners linked to Bank Verification Number (BVN) rose by 2.7 million (between December 2024 and July 2025) to 66.2 million.
Without a doubt, the surge in BVN enrolment is an indication that the NRBVN policy is achieving its objective of getting more Nigerians into the domestic financial services net.
The Bank Verification Number (BVN) project, which captures the uniqueness of every bank customer, is also helping to provide the needed security for every customer transaction, in addition to giving each bank customer a unique identification, all of which are helping to revolutionalise the country’s banking and payment systems while ensuring depositors’ safety.
Following the NRBVN unveiling in Abuja, the CBN boss, Olayemi Cardoso, directed Nigerian banks to proactively develop and offer products specifically tailored to meet the unique needs and preferences of the diaspora community. This explains why the NRBVN launch is largely seen as a major step to keeping remittances inflow to the country soaring and dollar liquidity strong.
In a recent data released by the Premier Oiwoh-led NIBSS, the number of Nigerian bank account owners linked to BVN stood at 66.2 million at the end of July 2025, with a surge from 63.5 million as at December 2024, to 64.8 million in January 2025. In sum, 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, only 51.9 million accounts were linked to BVN. This rose to 56 million in 2022, and 60.1 million in 2023, and closed 2024 at 63.5 million.
“Over the past year, our policy frameworks have undergone extensive refinements, informed by sustained dialogue with International Money Transfer Operators (IMTOs). 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, Cardoso recently remarked.
He added: “With the introduction of NRBVN and complementary policy measures, we are optimistic about achieving our ambitious target of $1 billion in monthly remittance flows, a goal we believe is entirely achievable given the growing trust and convenience in formal remittance channels.
“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,” Cardoso said.
The CBN boss 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.
But despite IMTOs holding the key to Nigeria’s forex lifeline, they also struggle under regulatory constraints, cost, and market pressures, according to the Team Lead of the Finance Research Department at InvestingPort, Mrs Uwem Olubummo.
Olubummo emphasised that IMTOs have become a vital pillar in Nigeria’s financial ecosystem, serving as the bridge through which millions of Nigerians in the diaspora send funds home securely, quickly, and reliably.
She noted that these remittances are not only essential for household income support but also play a critical role in bolstering foreign exchange reserves and stimulating domestic economic activity.
However, despite their importance, the sector is grappling with several persistent challenges, including regulatory constraints, which remain one of the most significant hurdles that continue to limit its ability to reach full potential.
According to her, “restrictions on payout channels, stringent compliance costs, and complex licensing requirements, while necessary for oversight, can discourage new players from entering the market and, in turn, reduce competition. This lack of competition often keeps transaction costs high and limits innovation in service delivery.
Statistics on dollar inflows via IMTOs
THE value of foreign exchange inflows to the economy through the IMTOs rose sharply in 12 months to $4.76 billion, 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 $3.30 billion 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 $390.86 million, compared to $295.21 million in January 2023. This early momentum was maintained in February, with inflows increasing by 67.3 per cent, rising to $326.91 million from $195.23 million the previous year.
March continued the positive trend, with IMTO inflows hitting $363.76 million in 2024, up 30 per cent from $279.79 million in March 2023. April saw a leap, with inflows reaching $466.11 million, an 83.3 per cent increase from April 2023’s $254.26 million, marking the highest year-on-year percentage growth in the first half of the year.
May recorded inflows of $404.75 million in 2024, a 45.3 per cent rise compared to $278.54 million the year before. The final four months of 2024 showed a mixed pattern of inflows, reflecting broader economic uncertainties and seasonal effects. September recorded $336.61 million in IMTO inflows, up 40.8 per cent from $238.98 million in the same month of 2023.
October’s inflows rose modestly to $378.85 million, a 29.1 per cent increase year-on-year. However, November saw a sharp decline, with inflows dropping by 22.1 per cent to $252.28 million from $324.20 million in November 2023.
December ended the year on a more positive note, with inflows rebounding to $316.59 million, a 9.1 per cent increase compared to $348.33 million 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.
According to the President of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, there are over 1.24 million Nigerian Migrants abroad, and 50 per cent of them reside within the African neighbourhood, and the figure is expected to rise in the coming years.
Gwadabe listed the importance of migrant remittances to the economy, including serving as a lifeline for the recipients’ small households in the economy, and used for health, nutrition, education and societal needs.
The remittances are also higher than both Foreign Direct Investment and foreign aid flow to the economy, in addition to being cheaper sources of funds.
He said that remittances can be used in infrastructural developments, as seen in India and Lebanon, while in Dubai, UAE, the remittances are a stable source of liquidity in the market. The remittances, he added, can also serve as an excellent source of investment funds in the economy, even as they represent 83 per cent of the Federal Government budget in 2018.
The remittances were 11 times higher than the FDIs in the same period and 7.4 per cent larger than the net official development assistance received in 2017 of $3. 34 billion in the economy.
The Director/Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, agrees that foreign remittances have significantly boosted diaspora inflows into the country, playing an increasingly vital role in supporting the country’s foreign exchange reserves and economic stability.
He noted that the Central Bank of Nigeria (CBN) has taken deliberate and impactful steps to liberalise the foreign exchange market, creating a more transparent, competitive, and investor-friendly environment.
According to him, these reforms have not only made it easier for remittances to flow through official channels but have also enhanced confidence among Nigerians in the diaspora who send money home, knowing their funds will be processed efficiently and at market-reflective rates.
Yusuf further stressed: “One of the key achievements of the CBN’s intervention is the elimination of the rampant round-tripping practices that previously distorted the market and undermined policy credibility.
By closing loopholes that allowed for such arbitrage, the apex bank has strengthened the integrity of the FX system, ensuring that the benefits of remittance inflows are fully felt across the economy. These measures have also improved liquidity in the foreign exchange market, reduced the premium between official and parallel market rates.
And encouraged more Nigerians abroad to channel their remittances through regulated financial institutions. He argued that the combined effect of increased diaspora remittances and a more liberalised FX regime is fostering greater economic resilience, providing critical foreign currency inflows that support trade, investment, and development.
Yusuf emphasised that sustaining these gains will require consistent policy stability, continued enforcement of market discipline, and the expansion of financial infrastructure to reach underserved communities, thereby maximising the positive impact of remittance inflows on households, businesses, and the broader economy.
