CBN, NIBSS, Bankers Committee Announce Plans To Implement National Domestic Card Scheme
The Central Bank of Nigeria (CBN) alongside, the Nigeria Inter-Bank Settlement System (NIBSS) and the Bankers Committee have announced plans to implement a National Domestic Card Scheme which will be effective by January 16, 2023.
This was recently disclosed during a virtual press briefing at the Bankers’ Committee meeting.
Speaking on the plan to launch a national domestic card scheme, the Chief Executive Officer of NIBSS, Mr. Premier Oiwoh, said that the new initiative being birthed by the CBN, NIBSS, and Bankers’ Committee would enhance financial inclusion and create solutions to improve card ecosystem innovation in Nigeria.
Oiwoh said: “The domestic card scheme is a scheme that has been the brainwork of the CBN and it is being deployed to improve the payments landscape across Nigeria.”
“So, part of the proposition that this domestic card scheme will be creating is that it drives acceptance and efficiency, reduce operating costs of a card operation in the country, and also the provision of unique, reliable services because other features or other products will be layered on this card. Uniquely, this card will be configured to address the unique ecosystem issues that we have to help improve payments across the nation.”
“We also expect the card to provide affordable pricing; the charges will certainly be lower because it is expected to be charged in naira as against foreign currency. We also expect more local content; contents uniquely for the Nigerian landscape which will support micropayments and credits, e-government, identity management, transportation, the health sector, and agriculture in terms of payments.”
He added that the operational effectiveness of this card was expected to be robust and should drive a lot of innovation and validation, end-to-end visibility to improve fraud management, and a better dispute resolution process around the current card operating system.
He added: “it would improve sovereignty and security of our data and operations which would be locally based. It will also help and drive financial inclusion across the federation.
“These cards as I said with the platform and then lots of products will be layered across ranging from debit cards, virtual cards, debit cards, non-interest cards which will specifically address the needs of the Muslim segment of the country, then identity card. Any form of card scheme can be layered on top.”
Also, at the meeting, it was revealed that the central bank’s RT200 FX policy which aims to raise $200 billion from foreign exchange (FX) earnings from non-oil proceeds over the next three to five years, has continued to yield dividends as it has recorded $1.2 billion in repatriation, $870 million sold through the Investors and Exporters (I&E) window and N42 billion paid as a rebate.