In a bid to slow the flow of foreign exchange out of the
country the Central Bank of Nigeria (CBN) has ordered
commercial banks to stop customers from using their
debit and credit cards abroad.
The ban that takes effect on January 1, 2016, will not
allow Nigerans to use their naira-denominated credit,
debit and ATM cards for transactions that are
denominated in foreign currencies, either locally or when
they travel abroad.
It also means that the customers will not be able to use
their cards to buy products from foreign e-commerce
sites. Standard Chartered Bank has already notified its
customers about the changes.
“This is to notify you that from January 1, 2016, your
naira card will no longer be enabled for international use.
This is as a result of the limited foreign exchange supply
in the financial market,” the notification reads.
Commenting on the ban duration, the spokesperson for
Standard Chartered Nigeria, Mrs. Dayo Adurogbo, said,
“We cannot give a definite date. It depends on how soon it
is available. We will do everything to meet our customers’
demand once it is available.”
The CBN’s directive is called a “temporary measure” that
will help to stabilize the currency. The banks have already
reduced the amount of money that Nigerians could spend
on credit cards abroad from the annual $50,000 allowed
by the CBN to between $5,000 and $15,000.