The Central Bank of Nigeria, CBN ’s cashless initiative, has received greater boost as a Lagos based company, 03 Capital Nigeria Limited introduced the first non bank based credit card in the country.

The launch becomes Nigeria’s commencement of credit card system without attachment to any bank.

Chief Executive Officer, 03 Capital Nigeria Limited, Mr. Abimbola Pinheiro, while introducing the cards, said with 03 credit cards, Nigerians were freely presented with effective lending opportunities that will increase their purchasing powers while the country also benefits from economic activity promotion through innovative payment system.

He argued that “In Nigeria today we have about 100,000 bank based credit cards. When we compare it with our population of over 160 million, you will agree that a lot more is still needed to capture the entire people.

There is no risk without a reward. If we as Nigerians don’t take risks, our economy will not develop. It is our philosophy that every Nigerian would have credit card in their wallets. We cannot develop without a credit card system”.

He explained that the credit card works on the Interswitch network which means they can be used on all Automated Teller Machines, ATMs, Point of Sales Terminals, POS and Nigerian internet payment sites in Nigeria. The naira denominated credit cards have limits ranging from N100,000 to N1,500,000.

Pinheiro also flaunted the security compliance of the initiative, declaring: “Our entire operating systems run on certified platforms that are PCI DSS certified in line with international security standards as issued by Payment Card Industry Security Standards Council, PCI SSC.

The Card enterprise infrastructure is driven by an ultramodern Card Management System that is provided by a leading Canadian software company, Bevertec CST Inc. Customer Relationship Management System which is provided by Redmain, a UK based CRM Solution Provider.

“Our infrastructure provides a robust experience for the cardholder while guaranteeing transaction and data security in line with the international EMV standard and best practices. Our Risk management System is integrated with the Credit Bureaus to provide a thorough and efficient credit appraisal system”.

“The O3 selection process is extremely thorough with a high level KYC scrutiny in line with our philosophy of ‘right customer low risk’. The IT infrastructure is integrated with the existing credit bureaus which enables an automated credit history review of each applicant. The card management system has a predictable risk management and anti-fraud solution.

While also endorsing the product, Mr. Tope Adebayo, a representative of NIBBs, said “ NIBBs has been partner of progress with almost all the banks in Nigeria.

There have been collaboration with the banks and other institutions to develop this product. We need collaboration to make our system work well. This product is robust and needs the collaboration of all stakeholders to make it succeed.”

http://www.vanguardngr.com/2014/09/first-non-bank-based-credit-card-debuts-nigeria/#sthash.6JirSjlB.dpuf

Good one.I hope it works Gej Till 2019

Thanks sir,but how does the card work ,for instance how do i draw cash from the card as it is not
linked to any bank? or is it a cr card preloaded with cash?
We need more explanations on the workability of the card.

jtaconsulting,Lagos

Credit cards are a gift and a curse. However, they lean more toward the latter.
All credit cards do is ensure that you live above your means (if you aren't rock discipline).

For those asking, the basic workings of credit cards are like this:

a. Financial institution receives your application for a credit card.

b. They review it based on your "ability to pay back." This involves income, assets, job type etc.

c. Based on your "credit worthiness" they decide what to offer you as a "credit limit."

d. If approved, you are issued a card with the said "credit limit."

e. Every month, you can use no more than the set "credit limit," and are obligated to pay back the amount used + interest, or at least your set "minimum payment." The higher your outstanding balance at the end of the month, the higher your interest. REPEAT this step every month.


I'll explain some terms:
- Credit worthiness = Your likelihood to pay back regularly, based on your financial standing.
- Credit Limit = The max amount issued to you, which you can not exceed at any time. E.g the 100,000 - 1,500,000 in the OP's post.
- Minimum Payment = The lowest amount you are allowed to pay back each month to avoid a late fee or any penalties.

Fundamentally, you're borrowing money to live above your means, and pay interest to the financial institution for doing so.

However, If managed very well, it can provide you with an opportunity to launch yourself into businesses, and things you would otherwise not have had.

Many people who get approved for their first credit card go on shopping sprees, and other such activities, and then end up in debt.
As of 2012, the average credit card debt here in the U.S per household was $15,000 (NGN 2,435,850).

Avoid credit cards if you do not have a strong financial plan on how to make the funds work for you (use it as business capital).

And by the way, exclusive credit card companies like the one mentioned by the OP, are the worst and most predatory kinds.
They are notorious for insane interest rates, fees and penalties.

Someone please correct me if I'm wrong but I believe one could avoid paying interest by being smart, just pay off whatever you spend within the given grace period.

This just means pay back whatever you spend within 21 to 28 days. It varies for different Credit card companies.

As a rule of thumb, I make sure I pay off whatever I spend every fortnight. Mine is just a credit rating building tool not for buga.

If you know how to work the system then you're good.

If the card does not have either mastercard or visa card logo or enabled to be used to make payment on most foreign site,then the company should do something about it because that is only when most nigerians will patronize it.it will be a good initiative if master or visa is enabled for foreign online payment