With an increasingly harsh operating environment, a good number of Nigerian banks have again suspended international transactions on naira cards, Africa Today News, New York has gathered.
This is coming on the heels of the announcement by banks to their clients last year that they will stop allowing foreign transactions on Naira Visa debit cards by December 31, 2022.
In a recent directive, the heads of deposits, debit cards, and mortgages stated that this most recent suspension was made in order to offer their clients the greatest financial options available.
The monthly foreign transaction limit on Naira cards was previously decreased by commercial banks in the nation in March 2022. The United Bank of Africa (UBA), which declared $20 as its new cap, was the first to make the choice.
“In line with our promise to keep you updated on services, we have reviewed Naira Card limits for international transactions, and this will take effect 1st of March, 2022. Remember you can use your UBA Dollar, Pounds or Euro Card for international POS, ATM and web transactions. If you do not have one and would like to subscribe, please visit a branch close to you.”, It said
Zenith Bank followed suite later by informing its customers that it will no longer be able to carry out any international transaction on their naira Automated Teller Machine (ATM) cards effective from January 9th, 2023. This came after GTCO made the same announcement, which took effect on January 1.
This announcement further compounds the troubles of many Nigerians who shop online from international stores like Amazon, and Apple Music, among others as they will no longer be able to pay with their naira cards.
Zenith Bank’s announcement increased the number of banks that have suspended international transactions on naira cards, including First Bank and Standard Chartered Bank.
Several Nigerian banks had announced a $20 spending limit on international transactions due to the prolonged scarcity of foreign exchange and the Central Bank of Nigeria (CBN)’s strict capital control regime.
Daily Sun also observed that Flutterwave, Eversend, and other fintech platforms had also stopped virtual card services for international transactions.