Nigeria: Nigerian Banks Halt FX Transaction on Debit Cards

Nigerian Banks Halt FX Transaction on Debit Cards
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As the United States dollar scarcity bites harder, some Nigerian banks have reiterated the position that their customers will not be able to use their debit cards to buy online. The decision is linked to the Central Bank of Nigeria’s instruction or circular informing local lenders to protect the outflow of foreign currencies.

Nigeria has been unable to raise dollar inflow into the country as crude oil production volume continues to drop, though global oil prices remain strong at an average of $100 per barrel – far higher than less than $75 used to prepare 2022 fiscal expenditure.

While some deposit money banks have stopped their customer from using debit cards for online purchases, others said the decision will take effect on 30 September 2022.

Getting the United States dollars has become an issue in Nigeria, though analysts believe that about $39 billion in the nation’s external reserves is strong enough for the Central Bank of Nigeria’s market intervention.

“Due to current market realities on foreign exchange, you will no longer be able to use the Naira MasterCard, Naira Credit Card, our Virtual card and Visa Prepaid Naira card for international transactions”, FirstBank told customers via email.

All the tier one capital banks have shared similar emails with their customers in a move to reduce foreign currencies demand overdose on the local currency.

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