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Nigerian banks have cut their customers’ naira cards monthly spending by 80%, according to flurry emails seen by MarketForces Africa as part of compliance with the Central Bank of Nigeria (CBN) directive.
According to the local lenders, the implementation of the directive will commence on 14 March 2022., a decision that lenders said signals today’s economic realities. This will affect online transactions using local banks’ naira card payments, though some banks signal that customers can obtain dollar cards instead.
The review of transaction limit follows a move by the apex bank to tame foreign currencies outflow due to rising imports bills payments at a time when inflows have been limited despite rising oil prices.
Some analysts however attributed this effort to capital control strategy to strengthen the local currency. Nigeria’s apex bank has announced a plan to incentivise exporters with rebates on foreign currencies repatriated into the economy as part of the RT200 scheme.
According to the operating guideline for the scheme targeted at $200 billion inflow over 3-5 years; CBN said it will pay exporters N65 for every $1 sold into the economy through the Investors &Exporters window.
Operating Guidelines for RT200 Non-Oil Export Repatriation Rebate Scheme came following the CBN Governor, Godwin Emefiele RT200 programme launched at the post-Bankers’ Committee.
RT200 programme is designed to help ease the inadequacy of foreign exchange supply and the constant pressure on the exchange rate, Emefiele had explained. CBN said that the RT 200 will help the country raise $200 billion in foreign currencies (FX) earnings from non-oil proceeds over the next 3-5 years.
“The Scheme shall pay, N65 for every dollar repatriated and sold at the Investors and Exporters FX Window to ADBs for other third party use, and N35 for every dollar repatriated and sold into I&E for own use on eligible transactions only”.
In the emails sampled by MarketForces Africa from nearly 10 banks, customers that were allowed to spend $100 per month will have access to just $20 in 30-day for possible FX related purchases.
Some banks, as result, have indicated that they have suspended the use of naira cards for international automated teller machines, cash withdrawal and POS transactions in foreign currencies. This review is in response to economic realities today, Zenith Bank said in an email sent to customers.
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