The decision was taken by the Central Bank of Nigeria (CBN) and announced via a circular dated Monday, April 13, 2015.
The Central Bank of Nigeria (CBN) has reduced the overseas spending benchmark on Naira debit cards from $150,000 to $50,000 per annum.
The decision was taken by the CBN and announced via a circular dated Monday, April 13, 2015.
The circular, titled ‘Usage of naira denominated cards overseas’, was signed by the Director, Trade and Exchange, CBN, Olakanmi Gbadamosi.
The circular reads:
“Further to the circular No. TED/FEM/FPC/GEN/01/009 of September 26, 2013, all authorised dealers and the general public are hereby informed that with effect from the date of this circular (April 13, 2015), the existing limit on the usage of the naira denominated cards for transactions overseas has been reviewed downward.”
“Accordingly, the limit has been reduced from $150,000 to $50,000 per person per annum. In addition, authorised dealers are to ensure that the daily cash withdrawal limit embedded in the cards per person, per day is pegged at $300.
“Authorised dealers are to ensure strict compliance with this new limit and render monthly returns on the transactions to the Director, Trade and Exchange Department, CBN not later than the fifth day of the following month. Please ensure strict monitoring and compliance.”
The Managing Director and Chief Executive Officer of Union Bank Plc, Emeka Emuwa stated that the decision had been reached after banks in the country noticed that the amount spent by Naira debit cardholders overseas was rising fast and causing some arbitrage in the segment.