Nigerian banks cut dollar spending limit for naira debit cards Recently, at least two of Nigeria’s top commercial banks stated that they will cut the limitations on overseas transactions made with naira debit cards to $20 (about 10,000) per month, effective immediately.
In spite of the recent spike in global energy prices, Africa’s largest economy and top oil exporter is still suffering from a long-standing scarcity of foreign exchange, which has been a problem for decades. Read more
The usage of naira-denominated debit cards to pay for transactions billed in US dollars online is now possible for Nigerians. Debits are made from their naira accounts at the current exchange rates for each purchase they make.
Nigerian banks cut dollar spending limit for naira debit cards
Zenith Bank PLC and United Bank for Africa (UBA) previously allowed clients to spend up to $100 (N50,000) on web transactions using their naira cards, but according to emails issued to customers and obtained by TechCabal, that limit has been reduced to N10,000 (N50,000).
It has been decided to reduce the monthly card foreign spend limit for web transactions from $100 to $20, according to Zenith, who also stated that the decision was made “in reaction to today’s economic reality.”
With the revised naira card limits for overseas transactions taking effect on March 1, the statement came around two weeks after UBA informed its customers of the same in February.
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As a result, foreign Automated Teller Machine (ATM) cash withdrawals and point-of-sale (POS) transactions using naira cards are no longer permitted, meaning card holders would be unable to make cash withdrawals or payments through such channels when traveling outside the country.
For customers with increased international spending requirements, Zenith Bank recommends visiting any of its branches and asking for a foreign currency debit or prepaid card, which is available in US Dollar, Pound, and Euro varieties.
In a letter to customers, UBA reminded them that their UBA Dollar, Pounds, or Euro Card may be used for international POS, ATM, and web transactions. In the event that you do not already have one and would like to subscribe, please visit a branch in your area.”
It is not surprise that Nigerians have expressed their dissatisfaction with the new restrictions on social media because they hinder their capacity to pay for overseas transactions such as Netflix subscriptions, advertisements on Facebook, Twitter, and other platforms.