The transfer is a part of the central financial institution’s strikes to scale back money movement inside the borders of Africa’s largest financial system.
Nigeria’s central financial institution has launched a home card scheme to rival overseas playing cards like Mastercard and Visa, hoping to reinforce its drive to make Africa’s largest financial system a cashless society and save the nation overseas transaction charges.
The announcement on Thursday by the Central Financial institution of Nigeria (CBN) governor, Godwin Emefiele, follows its launch of Africa’s first digital foreign money, the e-naira, in October 2021.
Emefiele advised a digital launch of the AfriGo card scheme that though penetration of card funds in Nigeria had grown over time, many voters are nonetheless excluded.
“The challenges which have restricted the inclusion of Nigerians embody the excessive price of card companies on account of overseas trade necessities of worldwide card schemes and the truth that current card merchandise don’t deal with native peculiarities of the Nigerian market,” he mentioned.
Emefiele mentioned Nigeria was becoming a member of China, Russia, India and Turkey in launching a home card scheme. AfriGo is owned by CBN and Nigerian banks.
The operations of worldwide card service suppliers like Mastercard and Visa wouldn’t finish, he mentioned, as AfriGo is supposed to supply extra choices for home shoppers in a “cost-effective and aggressive method”.
Nigeria, Africa’s largest financial system, has greater than 200 million folks and the bulk nonetheless use money as a result of they reside in rural areas the place there are not any banks.
To advertise “monetary inclusion” in distant areas, the central financial institution introduced final week the launch of a money swap programme introducing a redesigned model of the native foreign money, the naira.