The United Bank for Africa (UBA) has launched the Afrigo Card, a domestic card scheme in Nigeria, stirring controversy over its necessity and impact on international card providers.
The Afrigo Card, introduced by the Central Bank of Nigeria (CBN) in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), is marketed as a cost-effective, naira-denominated alternative to international card schemes. However, critics argue that the move may be an attempt to restrict foreign competition and monopolize Nigeria’s payment ecosystem under the guise of financial inclusion.
Shamsideen Fashola, UBA’s Group Head of Retail and Digital Banking, praised the initiative, saying, “With Afrigo, we are offering a card that speaks directly to the needs of Nigerians.” Yet, skeptics question whether the card’s affordability truly benefits low-income earners or if it is merely another revenue stream for banks.
Additionally, concerns have been raised over the security and reliability of a domestic card network compared to well-established international schemes like Visa and Mastercard. Some Nigerians worry that the card’s nationwide usability might not be as seamless as promised, leading to potential payment disruptions.
Despite UBA’s assurances that Afrigo will enhance financial inclusion, many remain divided on whether this is a groundbreaking solution or a forced shift away from globally accepted payment systems. The bank has set the card’s cost at N1,000 plus N75 VAT, but some users argue that free international alternatives already exist.
Is this a move towards financial independence, or just another banking policy that limits consumer choice?
