Business
By Kennedy Nnamani
THE Central Bank of Nigeria, CBN, in collaboration with the Nigeria Inter Bank Settlement Systems, NIBSS, Plc, has announced the introduction of a National Domestic Card Scheme, NDCS.
Osita Nwanisobi, director, corporate communication of the CBN, who disclosed this on Friday in a statement, noted that the NDCS takes effect from January 16, 2023.
Nwanisobi stated that the move is in line with the CBN’s mandate to promote stability, inclusion and growth in the financial and payment system.
According to the statement, the NDCS shall be delivered through the NIBSS Plc, Nigeria’s central switch, in conjunction with the Bankers Committee and other financial ecosystem stakeholders.
“Nigeria is ideally positioned to successfully launch the national card scheme due to its position as Africa’s largest and most vibrant economy,” it said.
“The pace of digitisation and innovation, alongside the expansion of mobile penetration and the proactive policy initiatives of the CBN have driven the accelerated adoption of digital financial services,” it said.
Also, it is so “considering the strength and breadth of its banking sector and the rapid growth and transformation of its payments system over the last decade.
It added that 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 NDCS, it noted, will also enhance data sovereignty, enable the development of locally relevant products and services and reduce demands on foreign exchange.
“The scheme can also be leveraged as a platform for the seamless dissemination of government-to-person payments and other social impact initiatives, enhancing financial access and supporting the growth of a robust and inclusive digital economy.
“Once effective, 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 tokenized cards amongst others,” it added
The statement also stated that the CBN recognizes the significant benefits from 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.
Nigeria has therefore joined countries like India, Turkey, China, and Brazil as leading examples, which have launched domestic card schemes and harnessed the transformative benefits for their respective payments and financial systems, particularly for the underbanked.
KN
Tags: CBN National Domestic Card Scheme NIBSS Osita Nwanisobi
