CBN introduces Domestic Card Scheme
By Emeka Okoroanyanwu
Central Bank of Nigeria (CBN) has introduced a National Domestic Card Scheme which will promote stability, inclusion and growth in the financial and payment system. The scheme takes effect from January 16, 2023.
CBN Director, of Corporate Communications, Mr Osita Nwanisobi, in a statement, said the scheme could be used as a platform for the seamless dissemination of government-to-person payments and other social impact initiatives while also enhancing financial access and supporting the growth of robust and inclusive digital economy.
He said domesticating the card scheme would further enhance data sovereignty, enabling the development of locally relevant products and services and reducing demands on foreign exchange.
Nwanisosi said the card would be delivered through the country’s central switch, the Nigeria Inter-Bank Settlement Systems (NIBSS) Plc in conjunction with the Bankers Committee and other financial ecosystem stakeholders.
He noted that the CBN recognises the significant benefits of delivering Africa’s first central bank-driven, domestic card scheme, which, when delivered at scale, has the potential to become the largest in Africa, and one of the largest in the world.
The card scheme is expected to 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 tokenized cards amongst others.
With the development, Nigeria has become a part of the global community to introduce a domestic card schemes. Others are India, Turkey, China, and Brazil.