ALL YOU NEED TO KNOW ABOUT THE NATIONAL DOMESTIC CARD SCHEME THAT COMES ONLINE JANUARY 16 

Did you know that the National Domestic Card Scheme is part of the apex bank's initiative for boosting its cashless policy as well as bringing in those outside the banking system into online transactions?

Nigeria’s apex bank, the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS), including the Bankers Committee, is set to float a national card scheme to enhance the payment system in Nigeria.

A statement by CBN’s Director of Corporate Communications, Osita Nwanisiobi in October 2022, said that due to the size of Nigeria as Africa’s largest and most vibrant economy and speed of digitisation and innovation including the expansion of mobile access and proactive policy initiatives of the apex bank, it is important to accelerate the adoption of digital financial services. 

Here are some facts to know about the National Domestic Card Scheme: 

FACT 1:

The much-touted National Domestic Card Scheme announced by the Central Bank of Nigeria (CBN) is billed to become effective on January 16, 2023.

FACT 2:

The new card will see the CBN partnering with the Nigeria Inter-bank Settlement System (NIBBS) to unify payments in Nigeria and bring in the unbanked population. 

FACT 3:

The new card scheme which is also expected to rival big industry players industry such as Mastercard and Visa, will also reduce demand for foreign exchange (forex).

FACT 4

According to reports, the new card could also be used as a platform to disseminate government-to-person payments and other social initiatives to enhance financial access and support the growth of a strong and inclusive digital economy.

FACT 5

According to CBN’s Director of Corporate Communications, Osita Nwanisiobi in October 2022, the domesticated card scheme will also "enhance data sovereignty, enabling the development of locally relevant products and services and reduces demands on foreign exchange.”

FACT 6

The card would be delivered via NIBBS, the country’s central switch system in partnership with the Bankers Committee and other industry players. 

FACT 7

The functions of the card include: fostering 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.

FACT 8

The card will reduce dependence on cash transactions, as well as improve fraud management and better dispute management around card operating systems, according to a Premium Times report.

FACT 9

The CBN said the card will also incorporate products such as debit cards, credit cards and non-interest cards, among others. 

FACT 10

The National Domestic Card Scheme is a project and brainchild of the apex bank (CBN). 

Source: Legit.ng