- Says scheme will drive financial inclusion in Nigeria
BY BAMIDELE FAMOOFO
Governor of the Central Bank of Nigeria, Godwin Emefiele, has launched the Nigerian National Domestic Card Scheme.
The launch of the domestic card scheme, according to Emefiele, signals another major step in ensuring a thriving and competitive payments landscape in the country.
Nigeria, by this initiative, will be joining countries like China, Russia, Turkey and India who have launched domestic card schemes and harnessed the transformative benefits for their respective payments and financial systems, particularly for the under-banked.
The nation’s chief banker, while launching the scheme virtually on Thursday from Abuja, explained that the National domestic card scheme will further promote financial inclusion in the country.
He applauded the Nigerian banking community for rising up to the challenge of further strengthening the national payments system through the implementation of a Domestic Card Scheme.
His words: “Given the limited usage of cards by Nigerians and in a bid to deepen penetration, the Bank actively promoted the National domestic card scheme which will be accessible to all Nigerians and also address our local peculiarities. This Scheme is therefore an important plug in the gap that has remained with us since the cash-less policy was introduced.”
Emefiele also noted that the National Domestic Card Scheme bodes opportunities for the economy to integrate the informal segment of the economy, reduce shadow banking, bring more Nigerians into the formal financial services with attendant diversification of deposit portfolio which will further strengthen the stability of the banking industry.
The Apex Bank boss regretted that whilst the penetration of card payments in Nigeria has grown tremendously over the years, many Nigerians are still excluded. “The challenges that have limited the inclusion of Nigerians include 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 noted.
Emefiele however explained that the effort is not a quest to prevent international service providers from continuing to provide services in Nigeria, adding that it is aimed at providing more options for domestic consumers whilst also promoting the delivery of services in a more innovative, cost effective and competitive manner.
Similarly, Emefiele argued that the cashless policy which commenced in 2012, signposts our common drives to strengthen the national payment system and deepen the usage of electronic platforms in Nigeria. In line with the National Payments System Strategy, the CBN has been deliberate in collaborating with relevant stakeholders to enhance the national payments infrastructure through initiatives such as the Bank Verification Number (BVN), Real Time Gross Settlement System (RTGS), Shared Agent Network Facility (SANEF), Regulatory Sandbox, Open banking and the eNaira, the Central Bank of Nigeria’s Digital Currency, to mention a few.
“He said the cashless policy has created value, engendered competition and attracted investment into the Nigerian banking and payments ecosystem. We have witnessed the proliferation of products, channels and participants with significantly increased foreign direct investments into the Nigerian payments space.
“The CBN has also over time focused attention on robust development of financial service touch points including the ATMs, POS terminals and agent networks. The success of the Shared Agent Network Expansion Facility has led to growth in the number of agents to about 1.5 million across the Federation with the capacity to accept card payments from Nigerians.
“He assures that the CBN is committed to a robust, efficient and safe national payments system and welcomes innovation from both domestic firms and foreign investors. The Nigerian market is vast, and the current participants have done so much in the last twelve years to transform the ecosystem. Yet there is much ground to be covered as millions of Nigerians are yet without payments cards to consummate transactions,” he said.
