The Central Bank of Nigeria is set to release a credit card for local transactions. Nigerians will have it as an option alongside Mastercard, Discovery, and Visa. According to the report, the card will allow local banks and other financial institutions to provide payment solutions such as “debit, credit, virtual, loyalty, and tokenised cards, non-interest card, identity card”.
The apex bank explained that the National Domestic Card is coming at a time when the nation has attained “significant transformation in its payments system over the past decade” inspired by digital and technological transformation.
Some of the benefits of the card listed by the CBN include lowering the cost and use of foreign exchange, data protection, encouraging the development of localized products, and accessibility of financial services for Nigerians.
The CBN also stated that the card will be issued by the Nigeria Inter-Bank Settlement Systems (NIBSS) Plc in conjunction with the Bankers’ Committee and other stakeholders in the financial sector.
Advancement of payment systems in Nigeria
In a report released by the CBN that highlights the nation’s payment blueprint for the next three years, the CBN explained that stablecoins, ICOs, and blockchain-based solutions will become a part of the payment infrastructure.
In addition, it noted that AI, big data, and virtual reality-based products are part of what will constitute the new systems that will be integrated into the current national payment structure of Nigeria.
Aside from Nigeria, Turkey, China, Brazil, and India are examples of nations that have implemented a national card designed, implemented, and managed by the nation rather than a foreign product.
Premier Oiwoh, the Managing Director of NIBSS, at the Bankers’ Committee meeting where the announcement for the card was made explained that the card will enhance the payment landscape for Nigerians.
“This card will be configured to address the unique ecosystem issues that we have to help improve payment system issues that we have across the nation,” he added.