Business
CBN to stop foreign charges on domestic card transactions
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has stated that dollar charges on foreign cards for domestic transactions conducted within Nigeria will be stopped.
Emefiele disclosed this during the virtual launch of the Nigerian National Domestic Card Scheme, AfriGo, said transaction charges on the cards will be done in Naira.
He said only international transactions will be charged in foreign exchange, “All domestic card transactions that will be conducted in Nigeria will have to be through the Nigerian Domestic Cards.
“Your existing cards are fine. You can continue using them but given that charges by foreign cards are in dollars, we will no longer pay dollars for the charges on those cards.
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“We will only pay dollars for charges on transactions that are done outside Nigeria. NIBSS, the CBN and Nigerian banks will work together to see how to segregate those transactions. To ensure that we pay fees or charges for international transactions that are conducted on both domestic cards, Visa or Master Cards, as they are known today.”
Emefiele stated further that, “We will bar domestic charges from the Nigerian foreign exchange market at some point in the very near future.”
Meanwhile, speaking on AfriGo, Emefiele disclosed that it would give users control of their data, offer low cost on transactions and also solve the issue of foreign exchange.
“The National Domestic Card avails us of the sovereignty of our data. Secondly, it comes at lower costs and thirdly, the issue of foreign exchange.
“At this time when foreign exchange challenges persist globally, it is important for me to say that we have come up with this card to ensure that all card online transactions will now effective immediately, begin to go on the Nigerian National Domestic System.
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“At some point in the next few weeks, I am sure that the CBN will come up with the cut-off,” Emefiele said.
The apex bank chief also stated, “This effort is not an attempt to prevent international service providers from continuing to provide services in Nigeria. Rather, it aimed at providing more options for domestic consumers, while also promoting the delivery of services in a more cost-effective and competitive manner.
“The CBN is committed to a robust and safe payment system and welcomes innovations from domestic and foreign investors.”