In January 2023, the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS) launched AfriGo, the nation’s first domestic card scheme, marking a pivotal shift in the Nigerian payment ecosystem.
As Nigeria strives for financial independence and inclusion, AfriGo is strategically designed to reduce the nation’s dependency on foreign payment platforms like Visa and Mastercard, lower transaction costs, and enhance data sovereignty.
Introduction to AfriGo and AfriGo Card
AfriGo is Nigeria’s National Domestic Card Scheme aimed at providing a secure, cost-effective, and inclusive payment option for Nigerians. Unlike global alternatives, AfriGo is designed exclusively for local transactions, ensuring that fees, data processing, and innovations remain within the country.
The AfriGo Card, as the tangible product of this initiative, comes in multiple formats including debit, credit, prepaid, and virtual cards. These cards are issued by licensed Nigerian banks under the guidance of the CBN and NIBSS.
The introduction of AfriGo is not just about financial convenience—it is a socio-economic intervention to empower citizens, protect national interests, and foster a robust payment infrastructure tailored to local realities.
Background and Launch of AfriGo
Launched on January 26, 2023, AfriGo was introduced to address the excessive dependence on international card schemes that charge fees in foreign currencies, draining Nigeria’s foreign reserves. This initiative is part of the broader Cashless Policy of Nigeria, which aims to modernize the nation’s payment system, promote financial inclusion, and reduce the volume of physical cash in circulation.
According to The Guardian Nigeria, the CBN Governor at the time emphasized that AfriGo is not meant to ban international cards but to complement them, ensuring Nigeria has a resilient and independent payment infrastructure. This dual system ensures that while Nigerians can transact globally via Visa and Mastercard, AfriGo provides an affordable and accessible option for domestic transactions.
What is AfriGo: Products and Offerings
AfriGo offers a comprehensive range of card products to cater to the diverse financial needs of Nigerians:
- Debit Cards: For everyday purchases and ATM withdrawals within Nigeria.
- Credit Cards: Offering credit facilities for consumers to make purchases now and pay later.
- Prepaid Cards: Ideal for budgeting, gifting, and specific financial purposes.
- Virtual Cards: Perfect for online shopping and digital transactions.
- Payroll Cards: Designed for employers to easily disburse salaries.
Each card operates in Naira and is intended for domestic transactions, providing affordability and accessibility to millions of Nigerians. AfriGo cards can be linked to both individual and corporate accounts, providing flexibility for various financial activities.
Key Benefits and Features of AfriGo Card
- Cost Efficiency: Lower transaction fees compared to international cards reduce the cost burden on both users and merchants.
- Financial Data Sovereignty: All transactional data is processed and stored within Nigeria, enhancing data privacy and national security.
- Offline Payments: Designed to function even in areas with poor internet connectivity, ensuring no Nigerian is left behind in the digital payment revolution.
- Security: Equipped with EMV chip-and-pin technology, providing robust protection against fraud and cyber threats.
- Instant Settlement: Transactions processed with AfriGo are settled in real-time, which is crucial for SMEs that depend on immediate cash flow.
More details can be explored on the official AfriGo Pay website.
Adoption and Usage Statistics
- 3 Million+ Cards: As of late 2023, over 3 million AfriGo cards have been ordered by Nigerian banks (Wikipedia).
- 24 Banks: Including UBA, Access Bank, Zenith Bank, First Bank, and others actively issuing AfriGo cards.
- 16,000+ ATMs & 70% POS Terminals: These facilities already support AfriGo transactions, ensuring widespread accessibility (TechCabal).
Impact on SMEs and Financial Inclusion
AfriGo plays a crucial role in:
- Empowering SMEs: Instant settlements improve cash flow, enabling small businesses to reinvest quickly.
- Boosting Financial Inclusion: From 50% in 2021 to approximately 64% by 2023 (Punch NG).
- Enhancing Digital Banking: The card makes it easier for the unbanked and underbanked populations to participate in the formal financial system.
- National Economic Benefits: Reduced reliance on foreign card networks helps retain capital within Nigeria, contributing to economic growth.
AfriGo vs Visa, Mastercard, and Verve
| Feature | AfriGo | Visa/Mastercard | Verve |
|---|---|---|---|
| Transaction Scope | Domestic Only | Global | Africa-wide |
| Fees | Low | High (Forex Linked) | Moderate |
| Data Sovereignty | Full (Local) | None (Foreign Data Centers) | Partial |
| Offline Support | Yes | Limited | Limited |
| Security | EMV Chip & PIN | EMV Chip & PIN | EMV Chip & PIN |
AfriGo complements rather than replaces these global giants, offering an indigenous solution to Nigeria’s payment challenges.
Challenges Facing AfriGo
- Limited Awareness: Many Nigerians remain unaware of AfriGo’s existence and benefits, necessitating robust public education campaigns.
- Infrastructure: While adoption is growing, comprehensive ATM and POS support is still in progress.
- Consumer Trust: Building trust to rival well-established international brands is a gradual process.
- Technology Integration: Ensuring seamless integration with mobile wallets, fintech apps, and other digital platforms is crucial for widespread acceptance.
Future Outlook of AfriGo
AfriGo has ambitious plans, including:
- Integration of Payment ID Cards: Slated for 2024, this initiative will merge identification and payment capabilities into a single card.
- Expanding Acceptance Points: Increasing the number of ATMs, POS terminals, and online merchants that accept AfriGo.
- Cross-Border Opportunities: With the African Continental Free Trade Area (AfCFTA), there’s potential for AfriGo to evolve into a continental payment solution.
- Partnerships with Fintechs: Collaborations with fintech companies can enhance AfriGo’s usability and integration with digital financial services.
For more updates, visit NIBSS.
Final Thought
AfriGo stands as a symbol of Nigeria’s financial autonomy, providing an affordable, secure, and inclusive payment solution. As awareness and infrastructure grow, AfriGo is poised to reshape how Nigerians transact locally. This homegrown initiative not only empowers individuals and businesses but also fortifies Nigeria’s economic sovereignty.
If you’re a Nigerian, ask your bank today about the AfriGo Card and join the movement towards financial independence.
Additional Resources
Discover more from WiseFinanceHelp
Subscribe to get the latest posts sent to your email.
