Emefiele Plans To Stop Dollar Charges On Domestic Transactions

The Central Bank of Nigeria (CBN) has disclosed that domestic transactions on foreign cards will no longer be charged in dollars.

CBN Governor, Godwin Emefiele, made this known during a virtual launch of the Nigerian National Domestic Card Scheme, AfriGo, on Thursday.

According to Emefiele, dollars will only be charged on foreign transactions, “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. 

“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 said. 

During the event, Emefiele also told participants that at some point in the future, the central bank will bar domestic charges from the Nigerian foreign exchange market. 

The apex bank chief also spoke about the benefit of the Nigerian National Domestic Card Scheme, stating that it provides lower costs. 

“The National Domestic Card avails us 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. 

“At some point in the next few weeks, I am sure that the CBN will come up with the cut-off,” he disclosed.

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.”