Commercial banks in Nigeria have lowered the amount you can spend with your debit card abroad to $20 per month.
Nigerians can’t spend more than $20 on their naira debit cards monthly. Nigeria still needs foreign cash, even though energy prices have increased recently.
In February, the United Bank of Africa said the limit would be raised. They stated, “In an effort to provide our consumers with the most up-to-date information, we have reviewed the limitations placed on Naira Card transactions executed outside of Nigeria.”
Some financial companies work with international companies that can offer virtual dollar cards, but the prices are higher than on the black market.
Many Nigerians who send money to the U.S. through this route are worried. Its replacement, Chipper Cash, doesn’t give new customers dollar virtual cards. When a timeline is ready, the company will let people know.
International bank Standard Chartered Bank stopped using debit cards in other countries on August 1. This email came from the bank’s head of deposits, debit cards, and mortgages.
Nigerians can use debit cards worth naira to buy things online that cost U.S. dollars, but each purchase takes money out of their naira accounts at the current exchange rate.
Small tech businesses and Nigerians who trade in dollars don’t know what will happen. Limits on spending and stopping virtual cards hurt businesses. A local currency card can’t be used to import or buy for a business that doesn’t have a domestic account.
The CEO of a Nigerian digital business, Lukman Ibrahim, said that the company’s cloud infrastructures are in the U.S. He said, “because of the spending limit, we couldn’t pay for all the infrastructures in dollars, which will hurt our business when we resubscribe next month.
“We’re applying for a multi-currency Visa card. When it comes out, the spending limit might be between $1000 and $3000, but it’s $20,000 for the local card.”
He lamented, “It’s a bad scenario; we’re using virtual cards, and most companies have discontinued their dollar cards.
According to Afeez Winjobi, a freelance designer who has a number of paid subscriptions to websites that contain design tools, the limit has made it more difficult for him to obtain new subscriptions, which is unfair. He remarked, “These platforms make it easier for my company to give superior services to our customers. Because it is detrimental to our company, this policy needs to be revised.”