The saga of BVN for Nigerians in the Diaspora – Why ?

August 6, 2015 – The value of the Nigerian Diaspora to Nigeria’s development has been acknowledged in many quarters and demonstrated in many ways. As a typical example, the federal government of Nigeria recently declared Aug. 24 and 25 as Diaspora Days to recognise Nigerians in Diaspora as important stakeholders in national development www.nigeriadiasporaday.com .

A recent article published by the economist in June 2015 with the headline title; “Nigerians abroad- Secret weapon a source of money, markets, skills and ideas” highlighted a place referred to as London’s “little Lagos” in Peckham as the largest concentration of Nigerians in Britain. It also highlighted that census figures in Britain show that the number of British residents born in Nigeria more than doubled within the decade leading to 2011, to 191,000, thus making this the immigrant population with the second-fastest growth, after the Poles.

Also the census in America estimated the country’s Nigerian-born population at 221,000. The UN reckons that some 1.2m Nigerian-born people currently live abroad. Some more information on this matter can be obtained from the website below.

http://www.economist.com/news/special-report/21654360-nigerias-diaspora-source-money-markets-skills-and-ideas-secret-weapon

Whatever the exact numbers, the fact that the diaspora is an important source of money, markets and skills is well known to those who tap into this resource-market base. In 2013, the World Bank figures highlighted that the Nigerian Diaspora remittances to Nigeria was $21 billion. Many countries including Nigeria are leveraging on the Diaspora using Diaspora bonds and they see this asset as a debt instrument to raise financing from its overseas diaspora.

The Nigerian banking sector and corporate sectors such as housing, fast moveable consumer goods such as gari, yam flour, Indomie, Guinness and many other household Nigerian brand names have been actively wooing the Diaspora market.

Many of the Nigerian banks had an explicit online and offline strategy to implement a Diaspora banking strategy by sponsoring and supporting Nigerian Diaspora events or by leveraging on many Africa Diaspora events and activities in Europe and North America. In 2004, 2005 and 2006, I was actively involved through AfricaRecruit in hosting many Nigerian banks and organisations who valued Diaspora as a market. Today you can see some of the household Nigerian banks advertise and target the Diaspora on CNN’s online platform. No costs were spared to implement this.

Thus, it appears that the value of the Nigeria Diaspora to Nigeria is not in question. What is in question is the offhand way which Nigerians with dual citizenship or residency are being treated when it comes to the ‘Bank Verification Number’ (i.e. BVN) process.

One is at a loss as to why the same strategy that was deployed to seek customers has not been put in place to engage the Diaspora in relation to the BVN process. With the current information at our disposal, it appears that the Diaspora have suddenly been classified as ‘Non Resident Nigerian’ account holders who have to wade through the sea of seemingly inexplicit and inconvenient information to process the BVN registration!

Online communication on the various websites for Nigeria media houses, social media, Nigerian banks including Central bank and Nigeria Inter-Bank Settlement System (NIBSS) all have conflicting information.

Some of the media links have highlighted that Nigeria Inter-Bank Settlement System (NIBSS) recommended a levy of £30 as the cost of service for the exercise by Online Integrated Solution (OIS). In some cases, it has been claimed that the levy goes to the online provider, OIS, for the services being provided and neither NIBSS nor CBN charges any amount for the service.

Nigeria in Diaspora Leadership Forum, which I am part of sent a letter to OIS on the 25th June to raise their various concerns on the following issues;

 Direct cost of BVN registration to Nigerians in the Diaspora and why Nigerians in the Diaspora are being asked to pay for a service that is free to all in Nigeria. The banks in Nigeria are bearing the cost for resourcing and administering the process as part of good customer service and there is no reason why this should not be extended to those in the Diaspora.

 Indirect costs to the Diaspora both financial and non-financial. As an example, those travelling long distances to the OIS centers could well spend over £100 on their travel fare alone. Also, they may need to take time off work and other personal commitments to attend. Other costs could include accommodation (i.e. if they have to stay overnight in London due to delay in the registration process), subsistence and so on, making the whole exercise very costly. This, therefore, exacerbates the unfairness in charging so much for a service being provided to others free.

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 Data protection assurance – as it appears that current measures may need improved security and necessitate robust controls to ensure that no personal information or biometric data will be at risk as a result of the services being provided.

 Poor service provision –must be avoided by providing a highly professional and customer service that matches with the standard in the country where the service is rendered. This may include, but not limited to the provision of all essential information on the enrolment page so that registrants are fully aware of the documents they need to bring, payment methods and the assurance that the appointments times offered to registrants are kept.

 Sign- posting –as there should be some support in signposting people by indicating on the website enrolment page some details to inform the Diaspora that they may contact their banks in Nigeria to confirm whether the bank has an office in the country of residence that can process the BVN before applying via a website.

Not unsurprisingly, we are yet to receive a response. Why do we make things difficult for ourselves?

In view of the above facts and concerns from the Diaspora, it is hoped that the present models of implementation could be improved if the following suggestions are considered by all key players involved in the process i.e. CBN, NIBBS and the banks:

 All players could have updated the factual press release on their websites to indicate the process and disclaim any wrong information in the public domain. This will bring transparency to the process and ensure that anyone in the Diaspora seeking information is able to access it in person and is not dependent on third party information via social media (as this may lead to misinformation). As an example, the CBN should have online circulars and memos issued to banks on Diaspora BVN on their websites. Also the NIBBS should have press statements and circulars on their website and the respective banks should have all relevant information on their websites as well.

 Banks with branches in the UK, USA etc and/or corresponding relationships could put in place a process for the Diaspora to have their BVN done. This will highlight the value placed on the Diaspora as clients.
 All banks could have a strategy in place on how they should engage their Diaspora by leveraging on events and activities inside and outside Nigeria such as having a presence at the Aug. 24 and 25 Diaspora Day in Nigeria and ensure that their branches in Abuja are geared up to be able to process BVNs between the 24th -28th August 2015.

 All banks could send out e-mails and texts to those they know to be Diaspora or ‘Non Resident Nigerian account holders’ informing them of the options available for the implementation of the BVN.

 Given the global diversity of the Diaspora, time limits should be taken off the process. For example, the current deadline of 31st October 2015 as the end date is not a viable or convenient option for the Diaspora customers. Rather the exercise should be an ongoing process available to people as they access and use their bank accounts. The banks should use every available opportunity to inform and engage the clients in the process.

Finally the Nigerian government could establish a very robust information technology strategy to ensure that its citizens have access to the right information at the right time and can be active citizens. For example, circulars, memos, publications should always be available and there should be active use of the online platform to seek views, consult and engage widely. The internet could be recognized as a key tool that can be successfully deployed in addressing governance and transparency. It ensures all citizens are informed and can choose to be active participants in developing the country.

Lastly, it is important to appreciate that having an internet presence with the contact details for people to contact the organisation is half of the equation. The other half is ensuring that there is someone who acts on the communication and response within a reasonable time limit e.g. 5 working days!!!

Written by Dr Titilola Banjoko, AfricaRecruit, Board member of the Nigeria Leadership Initiative, member of the African Diaspora for Better Health in Africa and the Nigeria in Diaspora Leadership Forum (www.nidmecorp.com)