Cashless Policy: CBN Switches to National Domestic Card, stop Issuing of ATM Card

• The central bank of Nigeria is making moves to Unveil National Domestic Card Scheme to Boost Payment Systems
• The Apex bank, along with the Nigeria Inter-Bank Settlement Systems (NIBSS) said the scheme is to boost the payment process in the country
• The Nigeria Bankers Committee is also involved in the development of the card as well.

The National Domestic Card Scheme will go into operation on January 16, 2023, according to a statement made by the Central Bank of Nigeria (CBN). The initiative, which will be carried out by Nigeria Inter-Bank Settlement Systems (NIBSS) Plc, the nation’s central switch, in collaboration with the Bankers Committee and other stakeholders in the financial ecosystem, aims to promote stability, inclusion, and growth in the financial and payment system.

The card policy was also intended to encourage development and innovation in the indigenous Nigerian market while facilitating regional and global interoperability, enabling banks and other institutions to provide a range of solutions, including debit, credit, virtual, loyalty, and tokenized cards, among others.

The rate of innovation and digitalization, as well as the growth in mobile penetration and the proactive policy actions of the CBN, have boosted the acceptance of digital financial services. Nigeria’s economy is still the biggest and most dynamic in Africa.

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The country is in a prime position to successfully roll out a national card program given the strength and diversity of its banking industry as well as the quick expansion and transformation of its payments system over the past ten years. The infrastructure must be able to supply lower-cost payment services that are easier for Nigerians to use and afford in order to build on this platform and drive financial inclusion.

The scheme could also be used as a platform for the seamless dissemination of government-to-person payments and other social impact initiatives, the central bank noted in a statement released by CBN Director, of Corporate Communications, Mr. Osita Nwanisobi. This would improve financial access and support the growth of a strong and equitable digital economy.

CBN added that domesticating the card program will increase data sovereignty, allow for the creation of locally relevant goods and services, and lessen the need for foreign currency.

Nigeria has joined a growing group of nations—leading examples include India, Turkey, China, and Brazil—that have introduced domestic card programs and reaped the benefits of their individual payment and financial systems, particularly for the unbanked population.

“The CBN acknowledges the substantial benefits from implementing Africa’s first central bank-driven, domestic card program, which, when executed at scale, has the potential to become the largest in Africa and one of the largest in the world,” Osita said.

Source: legit.ng