CBN, NIBSS Plc Set To Launch National Domestic Card Scheme For Nigeria

The Central Bank of Nigeria (CBN), in line with its mandate to promote stability, inclusion and growth in the financial and payment system, is set to launch National Domestic Card Scheme (NDCS) effective January 16, 2023.

OPTIMUM TIMES recalls that CBN, a year ago, precisely on 25 October, 2021, launched and activated Central Bank Digital Currency (CBDC), being the first in Africa.

By January, 2023, Nigeria would have joined a growing list of countries – 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 under-banked.

A statement by the CBN Director Corporate Communications, Osita Nwanisobi noted that Nigeria is Africa’s largest and most vibrant economy and 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.

He explained that considering the strength and breadth of its banking sector and the rapid growth and transformation of its payments system over the last decade, Nigeria is ideally positioned to successfully launch a national card scheme.

According to him, “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.

“Domesticating our card scheme also enhances data
sovereignty, enabling the development of locally relevant products and services and reduces 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.

“The national domestic card scheme shall be delivered through the Nigeria InterBank Settlement Systems (NIBSS) Plc, Nigeria’s central switch, in conjunction
with the Bankers Committee and other financial ecosystem stakeholders.

“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.

“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.”