CBN Introduces Domestic Card To Save Foreign Exchange Fees

The Nigerian National Domestic Card Scheme was introduced by the Central Bank of Nigeria on Thursday in an effort to strengthen the nation’s electronic payment infrastructure.
The Central Bank Governor, Godwin Emefiele, said the card would assist to lower operating costs, charges, and preserve foreign exchange in the country during the launch, which was conducted digitally.
“Ladies and gentlemen, it is imperative that I state that we have come up with this card to ensure that all online transactions will now effectively instantly begin to go on the Nigerian National Domestic Card system,” Emefiele said. “At this time when foreign exchange issues exist globally.

“The Nigerian domestic cards would be required for all domestic transactions made in Nigeria.”

The CBN Governor said Nigerians could continue to use the existing payments cards in the country for transactions.

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He added, “But given that charges by foreign cards are in dollars, we will no longer pay dollars for the charges on those cards. Particularly, we would only pay dollars for charges for transactions that are done with whether they are domestic cards or foreign cards outside Nigeria”
The banking regulator said the CBN, Nigeria Inter-Bank Settlement System Plc and the Nigerian banks would work together on how to segregate those transactions to ensure that they would only make charges or fees for international transactions that are conducted on the cards or the Visa or MasterCard.

“I thought it important for me to say so not because there’s any preference for the domestic card but what is most important is that we do not have foreign exchange and we will bar payment of charges for domestic transactions from the Nigerian foreign exchange market at some point in the very near future,” he said.

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