Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, yesterday unveiled the Nigerian National Domestic Card Scheme, known as AfriGo, in a significant move to strengthen the national payments system and deepen the usage of electronic platforms in the country.
Unveiling the first Central Bank-led domestic scheme card scheme in Africa in a virtual ceremony, Mr. Emefiele said the new card scheme, done in collaboration with the Nigeria Inter-bank Settlement System (NIBSS), offers more options for domestic consumers and promotes the delivery of services in a more innovative, cost-effective and competitive manner.
He said: “The scheme is important to plug in the gap that has remained in the economy since the introduction of the cashless policy, and will integrate the informal segment of our economy, reduce shadow banking, bring more Nigerians into the formal financial services with an attendant diversification of deposit portfolio, which will further strengthen the stability of the banking industry.”
He noted that although the penetration of card payments in Nigeria has grown tremendously over the years, many Nigerians were still excluded.
He linked the challenges of financial inclusion in the country to the high cost of card services as a result of foreign exchange requirements of international card schemes, and the inability of existing card products to address local peculiarities of the Nigerian market.
While assuring that the National Domestic Card will be accessible to all Nigerians and address most of the country’s local peculiarities, Emefiele explained that the scheme is not meant to prevent international service providers from continuing to provide services in Nigeria.
Instead, he said, it is aimed at providing funds for domestic consumers whilst also promoting the delivery of services in a more innovative, cost-effective and competitive manner.
The scheme is important to plug in the gap that has remained in the economy since the introduction of the cashless policy, and will integrate the informal segment of our economy, reduce shadow banking…
Transaction costs
In her welcome remarks, the Deputy Governor (Financial System Stability) at the CBN, Mrs. Aishah Ahmad, said the National domestic card Scheme would lead to the sovereignty of data, save cost on card transactions, reduce foreign exchange pressure, and present new opportunities for the Nigerian economy.
Mrs. Ahmad, who doubles as Chairman of the Nigerian Interbank Settlement System (NIBSS), further said the card scheme “heralds a new vista of opportunities for the card business, that several countries continue to recognise and leverage as they create their domestic card schemes to augment existing foreign payment card rails.”
According to her, the card scheme also provides an essential platform for further innovation to solve some of the most pressing issues around financial inclusion, SME payments and trade facilitation primarily, supporting the drive for a robust digital economy for the Nigerian market, the African continent and the world.
Giving an overview of the card, she said the name for the national domestic card scheme, AfriGO, was birthed in Nigeria with continental aspirations, as ‘AFRI’ means culture, ethnic diversity, bravery, innovation, and growth, while “GO” symbolises progress, empowerment, inclusivity, and future-forward amongst others.
Also speaking, the Managing Director of NIBSS, Premier Owoh, listed the security features of the AfriGO card scheme to include a smart chip, the CVV Code, and the NQR embedded signatures, amongst others.
