CBN, NIBSS to Unify Payments Through National Domestic Card Scheme

The Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS), including the Bankers Committee, will introduce a national card scheme in 2023 to enhance the payment system in Nigeria.

Nigeria’s apex bank Managing Director of NIBSS, Premier Owoh, stated this during the Committee’s meeting on Thursday, October 20, 2022.

It was gathered that the National Domestic Card Scheme will be designed to help accelerate acceptance and efficiency and reduce the operating costs of cards in the country.

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Additionally, the card will be configured to manage the payment ecosystem and improve payment across Nigeria.

The director stated that the new scheme will also provide affordable pricing as charges on the card will be lower because it will be charged in Naira and not in foreign currency.

Owoh explained that 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.

It is also expected to reduce reliance on cash across the landscape and promote the cashless policy of the Central Bank of Nigeria. Owoh 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.

Reports stated that with the introduction of the card, Nigeria joins a growing list of countries such as India, Turkey, China, and Brazil as leading examples.

These countries have launched domestic card schemes and harnessed the transformative benefits for their respective payments and financial systems, particularly for the underbanked.

Nwanisobi 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.”