The Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement Systems (NIBSS) have unveiled Nigeria’s first national payment card named AfriGo.
At the virtual unveiling, the CBN Governor, Godwin Emefiele, said the new card scheme would boost financial inclusion as it would be cheaper and available to all Nigerians.
Emefiele said, “The National Domestic Card avails us the sovereignty of our data. Secondly, it comes at lower costs and thirdly, the issue of foreign exchange.”
The governor pointed out that the introduction of AfriGo will not prevent the use of existing international cards but will provide more options and services for Nigerians in a more cost-effective manner while all online card transactions will begin to go on the Nigerian National Domestic System with immediate effect.
With persisting foreign exchange challenges, he added that going forward, all domestic card transactions conducted in Nigeria would have to be through the Nigerian Domestic Cards while charges by foreign cards would no longer be paid in dollars.
“We will only pay dollars for charges on transactions that are done outside Nigeria. NIBSS, the CBN and Nigerian banks will work together to see how to segregate those transactions. To ensure that we pay fees or charges for international transactions that are conducted on both domestic cards, Visa or Master Cards, as they are known today.
“We will bar domestic charges from the Nigerian foreign exchange market at some point in the very near future,” he said.
The Deputy Governor of CBN and Chairman of NIBSS, Aisha Ahmad, said the implementation of the National Domestic Card Scheme would have a host of potential benefits including improved transaction security, better pricing opportunities, reduced demand for FX and less pressure on the Naira.
“Other advantages include a boost to financial inclusion, value retention, flexible and innovative scale, and a source of national pride,” she added.
