The Central Bank of Nigeria (CBN) has recently announced that it will be implementing a ban on dollar charges for domestic transactions.
This decision is aimed at promoting the use of the Nigerian naira and reducing the dependence on foreign currencies, particularly the US dollar, within the country.
The CBN has stated that any financial institution that continues to charge dollar fees on domestic transactions will be violating the new policy and will be subject to penalties.
This move is expected to provide relief to consumers, who have been facing increased costs due to the fluctuation of the dollar exchange rate.
The use of the dollar in domestic transactions has been a longstanding issue in Nigeria, with many businesses and individuals opting to use the currency in order to avoid the instability of the naira. However, this has led to an over-reliance on the dollar and has contributed to the devaluation of the naira.
The CBN’s decision to ban dollar charges on domestic transactions is a significant step towards promoting the use of the naira and addressing the issue of currency instability.
This move is expected to have a positive impact on the Nigerian economy, as it will encourage the use of local currency and reduce the demand for foreign currency. It will also promote transparency in financial transactions, and increase the volume of transactions done in local currency.
National Domestic Card scheme, Afrigo
The Central Bank of Nigeria (CBN) has announced that it will be setting a deadline for existing card schemes in the country to comply with the National Domestic Card scheme, Afrigo. After this deadline, these card schemes will no longer be accepted for domestic transactions in Nigeria.
During the virtual launch of the Afrigo card scheme on Thursday, The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele stated that “all domestic transactions conducted within Nigeria must be done using Nigerian domestic cards.” This move is a step towards promoting the use of local card schemes and increasing financial inclusion in the country.
The Delta State-born economist emphasized the importance of the domestic card scheme for the country’s sovereignty and cost efficiency. He stated that by using the domestic card scheme, Nigeria will have control over its own data, and the costs associated with card transactions will be lower.
Emefiele also noted that in light of ongoing foreign exchange challenges worldwide, it is crucial for Nigeria to adopt this system for all card transactions, including online transactions. He announced that the CBN will be announcing a cut-off date in the near future, after which point dollars will no longer be used for card charges within the country.