The Central Bank of Nigeria (CBN) is planning to end the use of Automated Teller Machine (ATM) as a means of withdrawing cash in the country.
To this end, the apex bank said it is poised to begin the rollout of the National Domestic Card which would become operational on January 16, 2023.
The card will, among other functions, unify payments, drive cashless transactions and promote transparency.
The CBN, in partnership with the Nigeria Inter-Bank Settlement System (NIBBS), said the scheme will also bring in the unbanked population into the financial system and reduce demand for foreign exchange.
The card is also expected to rival big industry players such as Mastercard and Visa.
Osita Nwanisiobi, CBN’s director of Corporate Communications, said that because Nigeria is Africa’s largest and most vibrant economy, and the speed of digitisation and innovation, including the expansion of mobile access and proactive policy initiatives of the apex bank, it has become important to accelerate the adoption of digital financial services.
Nwanisiobi said: “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. “Domesticating our card scheme also enhances data sovereignty, enabling the development of locally relevant products and services and reduces demands on foreign exchange.”
He said the 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.
The card would be delivered via NIBBS, the country’s central switch system in partnership with the Bankers Committee and other industry players.
“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,” he said.