Since last week, both the social and mainstream media have been so excited to with the report that the Central Bank of Nigeria (CBN), launched a domestic card scheme, capped, “AfriGo” to compete with foreign cards.
While you may be wondering still what this is all about, it is simple. CBN brought in AfriGo as part of a strategic move to reduce cash flow within the borders of Africa’s biggest economy. With this scheme, the apex bank hopes to enhance its drive to make the economy the much-vaunted cashless society, it has always desired Nigeria to be save the country foreign transaction fees.
Recall that this latest announcement the CBN governor Godwin Emefiele follows the bank’s decision last year to phase out old higher denomination bank notes just so Nigeria may join the comity of thriving economies of the world.
Emefiele said Nigeria was joining China, Russia, India and Turkey in launching a domestic card scheme. AfriGo is owned by CBN and Nigerian banks.
At a virtual launch of the “AfriGo” card scheme, Emefiele said that although penetration of card payments in Nigeria had grown over the years, many citizens remained excluded.
“The challenges that have limited the inclusion of Nigerians include the high cost of card services as a result of foreign exchange requirements of international card schemes and the fact that existing card products do not address local peculiarities of the Nigerian market,” said Emefiele.
International card services providers like Mastercard and Visa would not be stopped in Nigeria, he cleared.
The operations of international card service providers like Mastercard and Visa would not end, he said, as AfriGo is meant to provide more options for domestic consumers in a “cost-effective and competitive manner”.
“Rather, it (AFRIGO) is aimed at providing more options for domestic consumers whilst also promoting the delivery of services in a more innovative, cost-effective and competitive manner,” he said.
