The Central Bank of Nigeria, CBN, in line with its mandate to promote stability, inclusion and growth in the financial and payment system, has introduced a national domestic card scheme that becomes effective on January 16, 2023.
The CBN, in partnership with the Nigeria Inter-Bank Settlement System (NIBBS), said the scheme will unify payments in Nigeria and bring in the unbanked population.
New Card Will Reduce Demand For Foreign Exchange
The card is also expected to rival big industry players such as Mastercard and Visa.
In October 2022, Osita Nwanisiobi, CBN’s director of Corporate Communications, said that because Nigeria is Africa’s largest and most vibrant economy, and the speed of digitisation and innovation, including the expansion of mobile access and proactive policy initiatives of the apex bank, it has become important to accelerate the adoption of digital financial services.
Nwanisiobi said: “Considering the strength and breadth of its banking sector and the rapid growth and transformation of its payments system over the last decade, Nigeria is ideally positioned to successfully launch a national card scheme. “Domesticating our card scheme also enhances data sovereignty, enabling the development of locally relevant products and services and reduces demands on foreign exchange.”
CBN Lists Functions Of The Card
The CBN spokesman also said the card could also be used as a platform to disseminate government-to-person payments and other social initiatives to enhance financial access and support the growth of a strong and inclusive digital economy, according to reports.
The card would be delivered via NIBBS, the country’s central switch system in partnership with the Bankers Committee and other industry players. “It will foster innovation within the Nigerian domestic market, while enabling African and international interoperability, allowing banks and other institutions to offer a variety of solutions including debit, credit, virtual, loyalty and tokenized cards amongst others,” he said.
Card To Reduce Dependence On Cash Transactions
Part of the plan is for the card to reduce dependence on cash transactions, improve fraud management and enhance dispute management around card operating systems, Premium Times said. The CBN said the card will incorporate products such as debit cards, credit cards and non-interest cards, among others.
However, it could not be ascertained yet if Nigerians would be able to use it for international transactions as its application is for now restricted to local shores.
