About AfriGo Card (National Domestic Card) ~ Matter Arising

The Central Bank of Nigeria (CBN) has taken a bold step in advancing the country’s financial sector by launching a new national domestic card scheme, AfriGo card. The launch of AfriGo marks the central bank’s entry into the competitive market of card payment schemes in Nigeria and is part of a larger effort to strengthen the nation’s cashless economy. The announcement of the new card scheme was made by Godwin Emefiele, the Governor of the CBN, in partnership with the Nigeria Inter-Bank Settlement System (NIBSS).

What is AfriGo Card

AfriGo card is a national domestic card scheme launched by the Central Bank of Nigeria (CBN) in partnership with the Nigeria Inter-Bank Settlement System (NIBSS).

The AfriGo card is aimed at providing more options for domestic consumers in Nigeria while also promoting the delivery of services in a more innovative, cost-effective, and competitive manner. It allows the CBN to compete with international payment companies like Visa, Mastercard, Verve, and Interswitch in the valued $18.2 billion Nigerian cards and payments market.

The AfriGo card functions as a debit card and is linked to the user’s E-Naira account, making it a secure and convenient payment option for domestic transactions within Nigeria. The card is produced by the CBN and offers lower transaction fees compared to existing debit cards.

One of the key differences between AfriGo and existing debit cards is the lower transaction fees offered by the new card. AfriGo is exclusively designed for domestic transactions within Nigeria, while existing cards such as naira debit/credit cards can perform domestic transactions and domiciliary cards can perform international transactions. All these cards are produced by international payment companies through commercial banks. The AfriGo card will be linked to the E-Naira and function as a debit card, providing users with a secure and convenient payment option.

Sevan (7) Benefits of AfriGo Card

The benefits of AfriGo, the new national domestic card scheme launched by the Central Bank of Nigeria (CBN), include:

Improved transactional security: The AfriGo card is linked to the E-Naira and functions as a debit card, providing users with a secure and convenient payment option.
Reduced demand for foreign exchange (FX): By limiting transactions to within Nigeria, the AfriGo card reduces the demand for FX, which is beneficial for the local economy.
Local skill development in cards and financial technology: The AfriGo card scheme is produced and led by the CBN, which provides an opportunity for local skill development in the cards and financial technology sector.
Increased financial inclusion: The AfriGo card aims to reach the unbanked population and increase financial inclusion by offering cheaper charges and capturing the dynamics of micropayments.
Integration of the informal segment of the economy: The CBN governor has assured Nigerians that the AfriGo card scheme will open up new opportunities for the Nigerian economy to integrate the informal segment of the economy.
Reduced shadow banking: The AfriGo card scheme is expected to reduce shadow banking and bring more Nigerians into formal financial services.
Lower transaction fees: The AfriGo card offers cheaper transaction fees compared to existing debit cards.

These benefits demonstrate that the AfriGo card scheme is a valuable addition to the Nigerian financial landscape and is poised to drive the nation’s financial sector forward.

What is difference between AfriGo card existing ATM debit cards?

The difference between the AfriGo card and existing ATM debit cards lies in the following:

Issuer: The AfriGo card is issued by the Central Bank of Nigeria (CBN) while existing ATM debit cards are issued by commercial banks.
Transaction limit: The AfriGo card is limited to domestic transactions within Nigeria, while existing ATM debit cards can be used for both domestic and international transactions.
Transaction fees: The AfriGo card offers lower transaction fees compared to existing ATM debit cards.
Linkage: The AfriGo card is linked to the user’s E-Naira account, while existing ATM debit cards are linked to the user’s bank account.
Financial inclusion: The AfriGo card aims to reach the unbanked population and increase financial inclusion, while existing ATM debit cards cater to banked consumers.

Is AfriGo card Important?

Yes, the AfriGo card is important for several reasons:

Financial Inclusion: The AfriGo card aims to reach the unbanked population and increase financial inclusion, making it easier for them to access financial services and participate in the formal economy.
Cheaper Transaction Fees: The AfriGo card offers lower transaction fees compared to existing ATM debit cards, making it a more cost-effective payment option for domestic transactions within Nigeria.
Increased Security: The AfriGo card is linked to the user’s E-Naira account, which makes it a secure payment option and helps to reduce fraud.
Boosts Local Skills: The AfriGo card will help to develop local skills in the cards and payments industry and create new job opportunities in the sector.
Supports Cashless Policy: The AfriGo card is aimed at strengthening the cashless economy in Nigeria and reducing the dependency on cash transactions.

Disadvantages of AfriGo Card:

Limited to Domestic Transactions: The AfriGo card is limited to domestic transactions within Nigeria, so users may still need to use existing ATM debit cards for international transactions.
New Technology: The AfriGo card is a new technology, so there may be a learning curve for some users and a lack of familiarity with its use and benefits.
Limited Acceptance: The AfriGo card may not be widely accepted by merchants and retailers at first, which could limit its usefulness.
Potential Technical Issues: The AfriGo card is a new technology, so there may be technical issues that need to be resolved before it becomes fully operational.

AfriGo card has several advantages, such as lower transaction fees and increased security, there are also some disadvantages, such as limited acceptance and potential technical issues. As with any new technology, it will take time to assess its impact and determine its full benefits and limitations.

The launch of AfriGo is a significant development in Nigeria’s cashless economy. Despite the penetration of card transactions in the country for over a decade, cash transactions are still prevalent. The AfriGo card aims to reach the unbanked population and increase financial inclusion by offering cheaper charges and capturing the dynamics of micropayments, which are crucial for the majority of Nigerians.

In conclusion, the launch of AfriGo by the CBN is a decisive step towards advancing the country’s financial sector and strengthening the cashless economy. The new national domestic card scheme offers more options for domestic consumers, promotes innovative and cost-effective delivery of services, and increases financial inclusion.

The CBN governor has assured Nigerians that the AfriGo card scheme will open up new opportunities for the Nigerian economy and bring more people into formal financial services. The AfriGo card is a unique and valuable addition to the Nigerian financial landscape, and it is poised to drive the nation’s financial sector forward.

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