CBN Domestic Card | Nigerians to Start Using Domestic Cards
CBN domestic Card is one of its kind. In its attempt to curb the use of physical cash and encourage cashless policy, CBN introduces the Domestic cards.
What in the world is the giant of Africa trying to achieve with CBN domestic card?
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What is CBN Domestic Card?
Nigeria has opted to enter the $18 billion payments and card industry with its new CBN domestic card, AfriGo.
AfriGo functions similarly to Mastercard, Verve, or Visa cards. However, unlike those, it charges users in Naira rather than foreign money. This is Africa's first card of its sort.
The new card will be available to all Nigerians and is supposed to boost the country's payment system and increase the use of electronic platforms.
The CBN domestic card plan intends to provide domestic customers additional alternatives while also encouraging service delivery that is more creative, cost-effective, and competitive.
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Why the AfriGo Domestic Card?
The National CBN Domestic Card Scheme would provide chances for Nigeria's economy to incorporate the informal sector, according to CBN Governor Mr. Godwin Emefiele.
Additionally, it would lessen "shadow banking," increase the number of Nigerians using official financial services, and diversify deposit portfolios, all of which will increase the stability of the banking sector.
The penetration of card payments in Nigeria has increased significantly over the years, but he noted that Nigerians are still excluded.
He listed the obstacles that have prevented Nigerians from being included as the "high cost of card services as a result of foreign exchange requirements of international card schemes and the fact that existing card products do not address local peculiarities of the Nigerian market."
He clarified that the goal of the initiative is not to stop foreign service providers from continuing to offer services in Nigeria.
Instead, it aims to provide domestic customers more alternatives while also encouraging the delivery of services in a more creative, economical, and competitive manner.
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Conclusion
The primary goal of the CBN Domestic Card is to reduce the use of physical cash and strengthen the Naira.
Who knows if this will stop the Naira from falling in value against the dollar. Over time, we shall learn what the long-term effects of this abrupt introduction will be. But we can only wish Nigeria, the continent's powerhouse, luck until we get more information on this development.
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