Global economy 2023: Why central banks face an epic battle against inflation amid political obstacles
The ConversationNov 30, 2022
The Facts
On Thursday, Nigeria's central bank (CBN) announced the launch of its domestic card scheme AfriGo to rival foreign cards like Mastercard and Visa, providing more options for domestic consumers in a "cost-effective and competitive manner."
CBN Governor Godwin Emefiele stressed at the launch that this move is in line with global trends, citing China, India, Russia, and Turkey as countries that have also set up domestic card schemes.
The Spin
Narrative A
This national domestic card scheme will integrate Nigeria's informal economy with more formal financial services, benefitting long-neglected Nigerians who need daily micro-payment needs. It will also advance the Central Bank's cashless policy, which has already helped the country's national banking and payment ecosystem by generating competition and attracting investments.
Narrative B
The Central Bank's latest push for a cashless economy, including AfriGo and the phasing out of old naira notes, hides a covert agenda to obstruct Nigeria's electoral process as the scarcity of new notes has dragged the country into chaos, with Gov. Emefiele once again evading the parliament's invitation to discuss this policy.