First Bank of Nigeria has declared that the use of naira cards for foreign transactions will be suspended beginning September 30.
In a statement made available to clients, the bank indicated that its decision was driven by the country’s protracted currency crisis.
According to the bank, its naira credit card, virtual card, and visa prepaid naira card would not allow FX transactions.
“Due to current market conditions 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. This will take effect on 30 September 2022,” the statement by First Bank explained.
“Please use your Visa Debit Multi Currency Card, Visa Prepaid (USD) Card, and Visa Gold Credit Card to continue transacting abroad with limits of up to $10,000,” the statement added.
Customers were first given a $100 limit on their foreign spending, which was then cut to $50 in March. The bank lowered the overseas spending limit on its naira cards from $50 to $20 (about N10,000) each month in March.
Another giant, United Bank of Africa (UBA), similarly reduced the overseas spending limit on its naira card from $100 to $20 per month in February.
The action by First Bank comes as the country continues to grapple with a forex scarcity situation.
The development has also forced Chartered Bank to suspend foreign exchange transactions on its naira card.
According to the Central Bank of Nigeria’s (CBN) daily external reserve tracker, Nigeria’s foreign reserves fell to $37.73 billion by the end of September 20, 2022, from $40.04 billion in January.
