Nigerians to Pay for Multipurpose National Identity Card, Says NIMC

The National Identity Management Commission (NIMC) has announced that Nigerians will be required to pay a fee to obtain the new General Multipurpose National Identity Card. While the National Identification Number (NIN) remains free, the physical identity card, which integrates various financial and social services, will be accessible only through banks for a fee. The move aims to enhance financial inclusion and provide citizens with a verifiable means of identification. However, this decision has sparked debate over accessibility and affordability.

Summary

The Director-General and CEO of NIMC, Abisoye Odusote, revealed that Nigerians will have to pay to obtain the multipurpose identity card within 48 hours through their respective banks. She likened the process to acquiring an ATM card, where users must pay a fee to receive their cards.

The card, designed in collaboration with the Central Bank of Nigeria (CBN), Nigeria Inter-bank Settlement System (NIBBS), and AfriGo, will serve multiple functions, including financial transactions and access to government and private sector services.

According to NIMC, the multipurpose card is backed by the NIMC Act No. 23 of 2007, which mandates the commission to issue identity cards to Nigerian citizens and legal residents. The of this card aligns with the government’s broader digital economy and financial inclusion agenda.

Additionally, the Federal Government has directed banks to issue new debit cards linked with NIN, which will function both as a financial transaction card and as a national identity card. This move is part of efforts to consolidate identity management and streamline financial services for Nigerians.

What Undercode Say:

The of the multipurpose national identity card raises several critical discussions about financial inclusion, accessibility, and data security. Here are some key takeaways and analytical perspectives on this development:

1. Financial Inclusion vs. Economic Burden

While NIMC presents the initiative as a tool for financial inclusion, the additional cost of obtaining the card may create barriers for low-income individuals. Many Nigerians struggle with daily financial obligations, and adding a fee to access a fundamental identity document could exclude a significant portion of the population from the benefits of digital identity.

2. Government’s Push for Digital Economy

The integration of financial services with the NIN card aligns with the Nigerian government’s push toward a cashless economy. However, for this to be effective, the infrastructure supporting digital transactions must be robust. Power outages, network failures, and limited access to digital banking services in rural areas may hinder adoption.

3. Potential for Exploitation and Hidden Charges

There is a concern about transparency in the pricing model. While NIMC has mentioned a “token fee,” there is no clear communication on the exact cost or potential additional charges by banks. If not regulated properly, financial institutions may exploit the process by imposing excessive fees on card issuance and maintenance.

4. Data Privacy and Security Risks

With identity theft and financial fraud on the rise, the security of personal data collected by NIMC and partner financial institutions is a major concern. The government must ensure that the data management systems comply with global security standards to prevent unauthorized access and misuse of citizens’ personal and financial information.

5. Comparing to Global Identity Systems

Several countries, such as India with Aadhaar and Estonia with their e-ID system, have implemented national digital identity programs. However, most of these systems provide citizens with free access to basic identification cards, with optional paid upgrades for additional services. Nigeria’s approach of monetizing the basic identity card could be seen as counterproductive to national development.

6. Impact on Banking and Financial Transactions

The linkage of NIN to financial services could simplify banking processes and improve the efficiency of Know Your Customer (KYC) regulations. However, it also raises concerns about potential exclusion for those without easy access to banks, particularly in underserved regions where banking penetration is low.

7. Public Reception and Acceptance

Nigerians have historically been resistant to government policies that impose additional financial burdens without clear benefits. The previous controversies surrounding NIN registration and SIM card linkage indicate that public trust in NIMC’s processes is already fragile. If the government does not adequately communicate the benefits and costs associated with the multipurpose card, there could be widespread resistance.

8. Alternative Approaches for Identity Verification

Rather than requiring payment for physical cards, the government could focus on digital identity solutions that allow citizens to verify their identities through mobile applications or QR codes. This would reduce costs, improve accessibility, and enhance security.

9. Implementation Challenges and Timeline Concerns

The announcement states that the card will be available within 48 hours of payment, but previous government projects have suffered from bureaucratic delays. If NIMC fails to deliver within the promised timeframe, it could further erode public trust in the system.

10. Possible Future Developments

If successfully implemented, this initiative could pave the way for a fully integrated digital identity system in Nigeria. However, its success will depend on how well the government addresses concerns regarding affordability, accessibility, security, and transparency.

Conclusion

The decision to charge Nigerians for the multipurpose national identity card is a double-edged sword. While it promises improved financial inclusion and a streamlined identity system, it also introduces financial barriers that could exclude many citizens. To ensure widespread adoption and trust, the government must provide clear communication, set reasonable fees, and implement strong security measures. If executed effectively, this initiative could be a step forward in Nigeria’s digital transformation—but only if it prioritizes the needs of its people over profit.

References:

Reported By: https://www.legit.ng/business-economy/technology/1591827-nimc-nigerians-pay-obtain-multipurpose-national-identity-card/
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