The Central Bank of Nigeria (CBN) has announced the introduction of a National Domestic Card Scheme effective January 16, 2023, designed to promote stability, inclusion and growth in the financial and payment system.
The national domestic card scheme will be delivered through the Nigeria InterBank Settlement Systems (NIBSS) Plc, Nigeria’s central switch, in conjunction with the Bankers Committee and other financial ecosystem stakeholders.
The apex bank, in its assessment of the significant benefits from delivering Africa’s first central bank-driven, domestic card scheme, emphasised that when delivered at scale, it has the potential to become the largest in Africa, and one of the largest in the world.
It further noted that when the scheme gets in motion, Nigeria will join a growing list of countries including India, Turkey, China, and Brazil as leading examples, which have launched domestic card schemes and harnessed the transformative benefits for their respective payments and financial systems, particularly for the underbanked.
In a recent statement signed by Osita Nwanisobi, director of corporate communications, the CBN considered the strength and breadth of Nigeria’s banking sector and the rapid growth and transformation of its payments system over the last decade, noting that Nigeria is ideally positioned to successfully launch a national card scheme.
It further noted that Nigeria, Africa’s largest and most vibrant economy, is marked by the acceleration of digitisation and innovation, alongside the expansion of mobile penetration and the proactive policy initiatives of the CBN that have driven the accelerated adoption of digital financial services.
“Building on this platform to accelerate financial inclusion requires infrastructure that can deliver lower cost payments services that are more accessible and affordable for Nigerians,” the CBN stated.
It also noted that domesticating the card scheme also enhances data sovereignty, enabling the development of locally relevant products and services and reducing demands on foreign exchange.
The scheme can 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, it said.
