Nigerians will not be able to use their Naira debit cards for international transactions as scarcity of foreign exchange (forex) worsens in Africa’s largest economy and biggest oil exporter.
Some banks have already alerted their customers on the latest development while others are keenly watching activities before implementing the policy owing to the scarcity of forex.
This development is coming as some banks in the country reduced the monthly international spending limit on Naira cards to as low as $20. The daily international withdrawal limit has been around $100 for most banks until March when banks cut down international spending.
However, in the past few months, banks have reduced the total monthly amount of forex-denominated transactions that customers can do, using their naira debit or credit cards via ATMs and PoS terminals abroad as online payments or transactions.
BusinessDay reported that some of the banks include GTBank, Access Bank Plc, UBA, First Bank of Nigeria, Zenith Bank, and Ecobank, among others.
Apart from banks, various fintech firms such as Flutterwave, Eversend, and other fintech platforms have stopped their virtual card services for international transactions.
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With the suspension of the usage of naira-denominated debit cards for international transactions by some banks, the monthly spending limit for customers has dropped to zero from over $4,000 seven years ago.
Although various banks gave another alternative to which they can carry out their international transactions, GTbank said, “Dear customer, we write to inform you that you will no longer be able to use your Naira Mastercard for international online and POS transactions effective 31st December 2022. Kindly note that you can use your GTBank dollar card for all your international spending requirements.”
First Bank which suspended its naira card in September sent a statement to its customer to that effect which reads, “Due to current market realities on foreign exchange, you will no longer be able to use the Naira Mastercard, Naira Credit Card, our Virtual card, and Visa Prepaid Naira card for international transactions. This will take effect on 30 September 2022,” First Bank said.
However, its Visa Debit Multicurrency Card, Visa Prepaid (USD) Card, and Visa Gold Credit Card will continue transacting abroad with limits of up to $10,000.
The Central Bank of Nigeria (CBN) expressed concerns about the indiscriminate and suspicious manner in which some bank customers spent dollars and other foreign currencies abroad through their naira debit cards.
To reduce forex spending abroad, the CBN had directed that bank customer who spent above the $50,000 annual forex limit it imposed would be implemented and defaulters sanctioned.
A Twitter user identified as La Grace said “Nigerian banks are disallowing international transactions on naira cards. They want to take away everything.”
Hope Prosper, a Twitter user said “With all the restrictions that Emefiele put on Naira cards for international transactions, what did he achieve? I repeat again, that man must go to prison.”
Moverick said “GTBank has capitulated as well. Effectively, all naira cards are now useless for international transactions.”
