The federal government has given its approval for commercial banks to issue debit cards that double as national identity cards.
The groundbreaking policy was authorized on Wednesday during the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari.
Isa Pantami, the Minister of Communication and Digital Economy, addressed journalists after the meeting, stating that the directive came from the National Identity Management Commission (NIMC), granting permission to banks to print debit cards that would also serve as national identity cards.
This initiative aims to provide a multipurpose card that combines the functionality of a national identity card with that of a bank card, including a Mastercard, Visa, or other card options.
While the NIMC Act of 2007 only mandates Nigerian citizens to possess a National Identification Number (NIN) and not necessarily a physical card, there has been a growing demand for such cards.
Minister Pantami clarified, “What is mandatory for our citizens and legal residents is the acquiring of the national identity number, not the card. However, the card is optional.”
Pantami acknowledged that many citizens, particularly those residing in rural communities, have expressed a desire for physical identity cards. To address this demand, the NIMC introduced a smart ID card that can be downloaded from the NIMC app.
However, the accessibility of the digital card has been challenging for people in rural areas.
To alleviate these difficulties, NIMC has partnered with the Central Bank of Nigeria (CBN), enabling interested citizens to obtain cards easily from participating banks.
These cards will be printed alongside a Mastercard or Visa card, essentially providing a multipurpose card serving both as a national identity card and a bank card. Remarkably, this service is offered without any additional costs to citizens.
When applying for a card at their bank, customers can indicate their preference for a card that serves multiple purposes, combining national identity and banking functions.
Both the national identity information and the banking details will be printed on the same card, simplifying processes and reducing the need for multiple cards.
Moreover, Pantami highlighted that NIMC and CBN have signed a nondisclosure agreement to ensure the privacy and confidentiality of card applicants.
This agreement emphasizes the importance of safeguarding customer information during the issuance of these multipurpose cards.
Additionally, the council approved a memorandum proposing the deployment of an automated system to integrate NINs with individual SIM cards.
This system aims to enhance the implementation of the NIN-SIM linkage, a policy that has been in progress since 2011 without success.
President Buhari approved the implementation of this policy in February 2020, and a revised version was unveiled on May 6, 2021.
Pantami assured the public that the automated system would cleanse the database and streamline the process of SIM replacement for Nigerian citizens and legal residents.
This advancement is expected to enhance the efficiency of SIM card registration and contribute to a more secure and integrated digital ecosystem.
With federal government approval, Nigerian banks are now empowered to issue multipurpose debit cards, combining the functionalities of national identity cards and bank cards.
This groundbreaking initiative aligns with the government’s commitment to leveraging technology to improve citizen services, promote financial inclusion, and enhance security.
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