The Central Bank of Nigeria (CBN)
yesterday reduced the limit for usage of
naira debit cards
for transactions overseas
to $50,000 from $150,000 per person, per
annum.
The reduction was announced by the
Director, Trade and Exchange Department,
CBN, Mr. Olakanni Gbadamosi via a circular
titled “Usage of Naira Denominated Cards
Overseas.
The circular stated, “All authorised dealers
and the general public are hereby informed
that with effect from the date of this
circular (13th April 2015) the existing limit
on the usage of the naira denominated
cards for transactions overseas has been
reviewed downward
“Accordingly, the limit has been reduced
from $150,000 to $50,000 per person, per
annum. In addition, authorised dealers are
to ensure that the daily cash withdrawal
limit embedded in the cards per person,
per day is pegged at $300. Authorised
dealers are to ensure strict compliance with
this new limit and render monthly returns
of the transactions.”
The decision to reduce the limit was taken
at the meeting of the Bankers Committee
held last week.
Managing Director/Chief Executive, Union
Bank Mr. Emeka Emuwa, at the post
Bankers Committee press briefing said,
“We realise that people were using the
cards in a manner they were not expected
to use them. There were some arbitrage
going on, and in order to continue to
support the stability in the foreign
exchange market.
”So it was agreed at the committee that
the limit would be reduced for the use of
the naira debit cards. You will still have, as
a customer, unfettered access to your
dollar account (cards) but the naira cards
the limit will be reduced to a judicious
level.”
Also speaking, Managing Director/Chief
Executive, Mrs Adebola Adesola, explained
that, “This specifically applies to the use of
these cards abroad. When they used
abroad, the merchants have to be settled,
even if it is ATMs, the provider, which may
be Visa or Mastercard, we will have to be
settled in foreign exchange. We found that
they put a drain on the foreign exchange
resources available to finance industries.
And so there would be a reduction in the
annual allowable drawdown using naira
debit cards abroad”
