The Central Bank of Nigeria (CBN) launched the Nigerian National Domestic Card Scheme on Thursday to enhance the electronic payment system in the country. The virtual launch featured CBN Governor Godwin Emefiele, who emphasized that the new card aims to reduce operating costs, lower transaction charges, and preserve foreign exchange within Nigeria. Emefiele stated, “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 effectively 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.”
Despite significant growth in card payment penetration in Nigeria over the years, many Nigerians remain excluded from this system. Emefiele pointed out that high costs associated with card services, driven by the foreign exchange requirements of international card schemes, have limited access. Additionally, existing card products do not adequately address the unique needs of the Nigerian market. To tackle these issues and improve card usage among Nigerians, the CBN actively promoted the National Domestic Card Scheme, which is designed to be accessible to all citizens and cater to local peculiarities.
Emefiele further explained that since charges from foreign cards are billed in dollars, Nigerians will no longer incur dollar charges for domestic transactions. He clarified that dollar payments would only apply to international transactions conducted with either domestic or foreign cards outside Nigeria. The CBN, in collaboration with the Nigeria Inter-Bank Settlement System Plc and Nigerian banks, will work to segregate transactions to ensure that fees are only applied to international transactions processed through cards like Visa or MasterCard. Emefiele concluded by stressing the importance of this initiative, stating that it is not about favoring domestic cards but rather about addressing the foreign exchange challenges and preventing domestic transaction charges from impacting the Nigerian foreign exchange market in the near future.
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