CEM REPORT, FINANCE | With the introduction of the AfriGo card, the Central Bank of Nigeria (CBN) has barred payment of dollar charges on domestic transactions.
The CBN has said that henceforth charges on all cards would be paid in Naira, except for international transactions.
The CBN Governor, Godwin Emefiele, who launched the card virtually on Thursday morning, said all card online transactions will now effective immediately, begin to go on the Nigerian National Domestic System.
“The National Domestic Card avails us the sovereignty of our data. Secondly, it comes at lower costs, and thirdly, the issue of foreign exchange.
“At this time when foreign exchange challenges persist globally, it is important for me to say that we have come up with this card to ensure that all card online transactions will now effective immediately, begin to go on the Nigerian National Domestic System.
“At some point in the next few weeks, I am sure that the CBN will come up with the cut-off. All domestic card transactions that will be conducted in Nigeria will have to be through Nigerian Domestic Cards.
“Your existing cards are fine. You can continue using them but given that charges by foreign cards are in dollars, we will no longer pay dollars for the charges on those cards.
“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 added that the card would help to reduce operating costs, and charges and preserve foreign exchange in the country.
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He noted that the CBN is committed to a robust and safe payment system and welcomes innovations from domestic and foreign investors.
Furthermore, he said that the new card scheme will help close the gap between the number of unbanked and underserved Nigerians in the financial ecosystem.
“The Nigerian market is vast and the current participants have done so in the last 12 years to transform the ecosystem. Yet there is much ground to cover as millions of Nigerians are still without cards to consummate transactions.
“I am convinced that the National Domestic Card scheme will make this a reality in the coming months. We can no longer neglect the vast majority of Nigerians.”
