CBN to Float National Domestic Card Scheme January 2023

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has disclosed that its national domestic card scheme will become effective on January 16, 2023.

Business Post had reported that in line with its mandate to promote stability, inclusion, and growth in the financial and payment system, the apex bank and the Nigeria Inter-Bank Settlement Systems (NIBSS) Plc were planning to float a national payment card.

A statement from the Director of Corporate Communications, CBN, Mr Osita Nwanisobi, said the bank would be banking on Nigeria’s status as Africa’s largest and most vibrant economy and the expansion of mobile penetration and its proactive policy initiatives.

He 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.”

He noted that the country plans to build on this “platform to accelerate financial inclusion requires infrastructure that can deliver lower-cost payment services that are more accessible and affordable for Nigerians.”

According to him, “Domesticating our card scheme also enhances data sovereignty, enabling the development of locally relevant products and services and reduces demands on foreign exchange.”

He said the scheme could also be leveraged as a platform for the seamless dissemination of government-to-person payments and other social impact initiatives, enhancing financial access and supporting the growth of a robust and inclusive digital economy.

The national domestic card scheme, he noted, would be delivered through the NIBSS Plc, Nigeria’s central switch, in conjunction with the Bankers Committee and other financial ecosystem stakeholders.

“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.

Speaking last week, Mr Premier Oiwoh, Managing Director, NIBSS, said the national payment card would be created to help drive acceptance and efficiency and reduce the operating cost of cards in the country.

“This card will be configured to address the unique ecosystem that we have to help improve payment across the nation.

“We also expect the card to provide affordable pricing; on this card, the charges will be lower because it’s expected to be charged for in Naira as against foreign currency.”