New Developments In The Nigerian Payment System: The National Domestic Card Scheme (AFRIGO)

INTRODUCTION

The Central Bank of Nigeria (CBN), in line with its mandate to promote stability, inclusion, and growth of the Nigerian financial and payment system, introduced the “National Domestic Card Scheme”, in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS). The payment card was unveiled on the 26th of January 2023, in a bid to strengthen the cashless economy.

According to the CBN Governor, the National Domestic Card named “AfriGo” is designed to cater to the peculiarities of the Nigerian market which the existing card products have failed to address. Amongst other things “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”

It is interesting to note that the use of payment cards is not a novelty in Nigeria as usage has increased significantly over time. The new National Domestic Card, however, is different in that it is a local card targeted at domestic consumers for use solely within Nigeria. The National Domestic Card Scheme is discussed in this article along with its anticipated effects on financial services.