Central Bank for Nigeria

In the beginning, there were no indigenous players in the Nigerian payment industry that was dominated by debit and credit cards. At that time, two foreign card ...

With the government and NIBSS set to launch a domestic card scheme, there are questions about FG’s ability to both regulate and still play in a sector it once only regulated. While many analysts have argued that it would eventually benefit the man on the street and drive increased dependence in favour of the card schemes, others have expressed concern at the timing and purpose of it all. Some have argued that the policy seemed to have been aimed as part of the solution to the foreign exchange volatility with respect to the Naira with, perhaps, some unintended demystification of the offerings of the card giants, putting them in a precarious position. The collaborative competition between the major card schemes in Nigeria has enhanced payment experience for Nigerians, and also positioned the CBN as an agency with the ability to regulate the industry in a sustainable manner while providing support for local advancement. There are concerns that this move could easily dissuade innovators and investors from pushing the envelope to deliver new possibilities for Nigeria. Financial analysts have said the central bank has done a great job moderating a healthy competition amongst the card schemes that has benefitted both the financial sector and customers over the years. Raising concern over government’s regulations and policies in recent times, analysts are however of the view that the federal government’s moves in recent times, pose great concern to all. It will also foster closer business partnerships between East and West Africa and improve the ease of doing business on the continent, thereby encouraging even stronger growth. Since it is more affordable to produce and process, Verve card It also meant that more people could access a card scheme that was readily available and affordable for them. In the beginning, there were no indigenous players in the Nigerian payment industry that was dominated by debit and credit cards. Costs of production and processing cards posed a challenge that actively affected the customer’s experience and expense when using the cards.