Today, January 16, 2023, the Central Bank of Nigeria (CBN) started implementing the National Domestic Card Scheme.
The card created in collaboration with the Nigeria Inter-Bank Settlement System (NIBBS) aims to bring the unbanked people into the banking system and converge payments in Nigeria.
Although the card can currently not handle international payments, it is anticipated to compete with other debit cards such as Mastercard, Discover, and Visa cards.
Local banks and other financial institutions will be able to provide payment solutions such debit, credit, virtual, loyalty, and tokenized cards, non-interest cards, and identification cards after its adoption.
Announcing the deployment CBN’s Director, Corporate Communications Department Osita Nwanisobi, over the weekend announced that the National Domestic Card was introduced because of its belief that Nigeria had achieved “significant transformation in its payments system over the past decade.
He added that this has been driven by rapid digital and technological innovation, increasing mobile penetration, and the proactive policy initiatives of the CBN which have spurred unprecedented adoption of digital financial services.”
He listed the benefits of the card scheme to include among others, reduction of cost and use of foreign exchange, protection of data sovereignty, enabling locally relevant propositions, and making cards and payments more accessible and affordable for Nigerians.
“Given that MasterCard, Visa, Discovery, and other such cards are foreign controlled, the bank said National Domestic Card would ensure “improved sovereignty and security of our data and its operations will be locally based. It will also help to improve and drive financial inclusion nationwide”.
“The card also has the potential to leverage its platform for seamless dissemination of government-to-person payments and other social impact initiatives, ultimately enhancing financial inclusion and supporting the growth of a robust digital economy,” CBN added.
The card will be delivered through Nigeria’s central switch, the Nigeria Inter-Bank Settlement Systems (NIBSS) Plc, in conjunction with the Bankers Committee and other financial ecosystem stakeholders.
Nigeria will now join a growing number of nations that have introduced such cards for domestic usage, including Brazil, India, Turkey, China, and the United States.
The nations have tapped into the radical advantages of the programmes to power their payment and financial systems, especially for the underbanked.
The CBN said: “The domestic card scheme will be an important game changer for financial inclusion in Nigeria.
“The plan is to deliver Africa’s first central bank-driven, domestic card scheme that combines a fully domestic infrastructure with international interoperability.
“Our plans will enable us to pivot into the largest card scheme in Africa, and amongst the biggest globally.”
