Financial Inclusion: CBN activates national card scheme January 2023

*The Central Bank of Nigeria stresses the domestication of the country’s card scheme will enhance data sovereignty, enable the development of locally relevant products and services, and reduce demands on foreign exchange

Isola Moses | ConsumerConnect

As part of the Bank’s efforts at offering a variety of financial and payment system solutions to develop the domestic market, the Central Bank of Nigeria has introduced a national domestic card scheme which becomes effective January 16, 2023.

ConsumerConnect reports the Bankers’ Bank noted that the innovation is in line with its mandate to promote stability, inclusion and growth in the financial and payment system in the West African country.

Mr. Osita Nwanisobi, Director of Corporate Communications at CBN, stated that Nigeria is Africa’s largest and most vibrant economy, and the pace of digitisation and innovation, alongside the expansion of mobile penetration and the proactive policy initiatives of the CBN, has driven the accelerated adoption of digital financial services.

Nwanisobi in a statement said: “Considering the strength and breadth of its banking sector and the rapid growth and transformation of its payments system over the last decade, Nigeria is ideally positioned to successfully launch a national card scheme.

“Building on this platform to accelerate financial inclusion requires infrastructure that can deliver lower-cost payments services that are more accessible and affordable for Nigerians.”

The CBN Director of Corporate Communications also noted: “Domesticating our card scheme also enhances data sovereignty, enabling the development of locally relevant products and services and reduces demands on foreign exchange.”

The national card scheme could also be leveraged as a platform for the seamless dissemination of government-to-person payments and other social impact initiatives, to enhance financial access and support the growth of a robust and inclusive digital economy, he stated.

According to him, the domestic card scheme, will be delivered through the Nigeria InterBank Settlement Systems (NIBSS) Plc, Nigeria’s central switch, in conjunction with the Bankers Committee and other financial ecosystem stakeholders.

Nwanisobi further said: “It will foster innovation within the Nigerian domestic market, while enabling African and international interoperability, allowing banks and other institutions to offer a variety of solutions including debit, credit, virtual, loyalty and tokenised cards amongst others.”