CBN launches new domestic card to enhance e-payment

The Nigerian National Domestic Card Scheme was introduced by the Central Bank of Nigeria on Thursday in an effort to strengthen the nation's electronic payment infrastructure.

The Central Bank Governor, Godwin Emefiele, said the card would assist to lower operating costs, and charges, and preserve foreign exchange in the country during the launch, which was conducted digitally.

Emefiele said, “Ladies and gentlemen, at this time when foreign exchange challenges persist globally, it is important that I say that we have come up with this card to ensure that all online transactions will now effective immediately begin to go on the Nigerian National Domestic Card system.

“All domestic transactions that are going to be conducted in Nigeria will have to be through the Nigerian domestic cards.”

Although the use of cards for payments in Nigeria has increased significantly over time, many Nigerians remain excluded, he claimed.

The high cost of card services as a result of the foreign exchange requirements of international card schemes, he added, and the fact that current card goods do not address regional specifics of the Nigerian market are some of the difficulties that had hampered the inclusion of Nigerians.

He said that the Bank aggressively advocated the National domestic card system, which would be available to all Nigerians and also take into account local features, in light of the limited usage of cards by Nigerians and in an effort to improve penetration.

He added, “But given that charges by foreign cards are in dollars, we will no longer pay dollars for the charges on those cards. Particularly, we would only pay dollars for charges for transactions that are done with whether they are domestic cards or foreign cards outside Nigeria”

According to the banking regulator, the CBN, Nigeria Inter-Bank Settlement System Plc, and Nigerian banks would collaborate on how to separate those transactions so that they would only impose taxes or penalties for overseas transactions made using Visa or MasterCard cards.