Nigeria: Central bank reduces usage of debit card abroad to $50,000

Apr 16, 2015

The daily cash withdrawal limit per person and per day is $300.

The Central Bank of Nigeria (CBN) has announced that it has reduced the limit for usage of naira debit cards for transactions overseas to $50,000 (€47,000) from $150,000 per person, per annum. A CBN circular states that the new limit took effect on April 13, 2015.

The document adds that authorised dealers are to ensure that the daily cash withdrawal limit embedded in the cards per person, per day is pegged at $300.

Commenting on the announcement, managing director of Standard Chartered Bank Bola Adesola, told Vanguard newspaper that the use of debit cards abroad affects the foreign exchange resources available to finance industries, hence this reduction in the annual allowable drawdown using naira debit cards abroad.

The managing director of Union Bank Emeka Emuwa said after the Bankers’ Committee meeting at the CBN office in Lagos last week that the amount spent by naira debit cardholders overseas was rising fast and the banks were beginning to notice some arbitrate in the segment.

"As a customer, if you have a dollar account, you will still have unfettered access to it; but for naira debit accounts, the limits will be reduced to more judicious levels", he added.ADNFCR-2976-ID-801783789-ADNFCR