Categories: Finance

CBN to Launch Domestic National Card to Rival Visa, Verve and Mastercard

The central bank has announced it will issue a domestic national banking card through the Nigeria Inter-Bank Settlement Systems (NIBSS) in partnership with commercial banks. 

According to the CBN Spokesperson, Osita Nwanisobi, the domestic national card which will be launched on January 16, 2023, will enhance financial inclusion and deliver lower-cost transactions.

While Nigeria will be joining countries such as China, Brazil, India and Turkey that are already using domestic national cards, the soon-to-be-launched Nigeria domestic national card will either compete with or replace the well-established cards which include Visa, Verve and MasterCard. 

In a new development, the Central Bank of Nigeria (CBN) has disclosed that it will launch redesigned naira notes by the end of the year. 

According to the CBN governor, Godwin Emefiele, the redesigned naira notes will be available for use by December 2022.

Speaking further, the apex bank governor advised Nigerians to visit their various banks where they can deposit their existing naira note in exchange for new ones. 

Emefiele also informed journalists that the redesigned naira notes will go a long way to address counterfeit naira notes. 

He added that another advantage of the new naira notes is that it will help to hinder ransom payments to terrorists and kidnappers. 

Investors King learnt that the redesigned naira notes include N200, N500 and N100 notes.

“In line with the provisions of Sections 2(b), Section 18(a) and Section 19, Seb section(a) and (b) (2007), the management of the CBN has sought and obtained the approval of President Muhammadu Buhari to redesign, produce, release and circulate new series of banknotes at N200, N500 and N1,00 levels,” Godwin Emefele stated.

The CBN governor also expressed worry that 85 percent of the currency in circulation is being hoarded by Nigerians. He revealed that as of September 2022, N2.7 trillion out of the N3.3 trillion currency in circulation are held by the public. 

He further clarified that the new and existing currencies will remain legal tender and circulate together until January 31, 2023, when the existing notes will cease to be a legal tender.

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