The Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System Plc. (NIBSS), have embarked on moves to enhance the payment system in Nigeria.
To that end, CBN, NIBSS and the Banker’s Committee are putting finishing touches on a national card scheme that will introduce National Domestic Card and eventually phase out Automated Teller Machine (ATM) cards.
Managing Director of NIBSS, Premier Owoh, stated this during the Committee’s meeting held recently, saying the project has been approved and is the brainchild of CBN.
Part of the project, he said, is the design of the National Domestic Card Scheme by the apex bank which will help accelerate acceptance and efficiency and reduce operating costs of cards in the country.
According to him, the card will be configured to manage the payment ecosystem and improve payment across Nigeria.
It will also reportedly provide affordable pricing and lower charges because it will be costed in Naira instead of foreign currency.
The card would be optimised for local content solely for the Nigerian market and support micropayment and credit, e-government, identity management, transportation, health and agriculture regarding payment, Owoh said.
Explaining further, Owoh stated that the card is expected to reduce reliance on cash across the landscape and promote the cashless policy of the Central Bank of Nigeria.
He said that it will have components like debit cards, credit cards and non-interest cards.
CBN’s spokesman, Osita Nwanisobi, said the move is meant to promote inclusion and growth in the financial services sector via Nigeria’s central switch system, NIBSS. Nwaniso said the scheme will become effective in January 2023.
He said: “The CBN recognises the significant benefits from delivering Africa’s first central bank-driven, domestic card scheme, which, when delivered at scale, has the potential to become the largest in Africa, and one of the largest in the world.”
News Band, meanwhile, was informed by a source that the card was also designed to bring money laundering and economic and financial fraud under check as funds and transactions are easily harmonized.
With the introduction of the card, Nigeria joins other countries like India, Turkey, China, and Brazil that have domestic card schemes. Read more.