The closure of Naira Cards alarms Traveling Bank Customers.
Nigerians won’t be able to use their Naira debit cards for international transactions as the continent’s largest economy and top oil exporter experiences a worsening cash shortage.
This change comes as several banks in the nation cut the monthly cap on foreign purchases made with Naira cards to as little as $20. The monthly spending cap for consumers has decreased to zero from over $4,000 seven years ago due to some banks’ restriction of the use of naira-denominated debit cards for foreign transactions.
Apart from banks, various fintech firms such as Flutterwave, Eversend, and other fintech platforms have stopped their virtual card services for international transactions.
According to First Bank, “this will become effective on September 30, 2022”. “However, it will still allow transactions with up to $10,000 in limitations using its Visa Debit Multicurrency Card, Visa Prepaid (USD) Card, and Visa Gold Credit Card”.
The Nigerian Central Bank 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.