International transactions using First Bank of Nigeria’s naira Mastercard will no longer be accepted starting on September 30.
Financial institutions cut the monthly cap on naira cards’ international spending in March from $100 to $20.
Such purchases would not be possible on the bank’s naira credit card, virtual card, or visa prepaid naira card, according to a recent announcement to its clients.
You won’t be able to use the Naira Mastercard, Naira Credit Card, our Virtual card, or Visa Prepaid Naira card for international transactions any more due to the realities of the present foreign exchange market. First Bank stated that this will go into effect on September 30, 2022.
To continue making purchases overseas with restrictions of up to $10,000, kindly utilize your Visa Debit Multicurrency Card, Visa Prepaid (USD) Card, and Visa Gold Credit Card.
International transactions on Standard Chartered Bank’s naira visa debit card were stopped in July.
Other financial companies, including Flutterwave and Eversend, had also stopped offering virtual card services for cross-border transactions.
The development results from the country’s present struggle with foreign exchange shortage, which is harming vital sectors.
The naira fell to N436 to the dollar on Tuesday in the Investors and Exporters window and to N712 in the black market.
By the end of the year, the Central Bank of Nigeria (CBN) had made it clear that it would no longer sell foreign currency to banks.
CBN Governor Godwin Emefiele stated that banks should obtain foreign exchange revenues from exporters for their clients (importers).
The day when you wanted to pack up all the dollars and present them to the CBN so they could give you dollars because your clients needed $100 million or $200 million in foreign exchange was coming to an end, he had remarked.
Before or before the end of this year, it will be over. We will advise them to produce their own export revenues rather than returning to the Central Bank for foreign exchange.