Zenith Joins the List of Nigerian Banks That Suspended International Transactions on Naira ATM Cards
- More Nigerian banks have put a stop to the use of naira debit cards for international transfers
- This is coming amid persistent Foreign Exchange (FX) pressure occasioned by the dollar supply shortage
- An economist has explained the situation while Zenith, GT other banks provide alternatives for foreign transactions
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Zenith Bank has joined a growing list of Nigerian banks to suspend international transactions of their naira-denominated Mastercard.
Guaranty Trust Bank Plc, Access Bank Plc, UBA, First Bank of Nigeria, Zenith Bank, and Ecobank, are some of the banks that have announced similar decisions.
The banks have been complaining of dollar shortages and have introduced various policies to reduce the demand pressure.
Source: Getty Images
Zenith
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DailyTrust reports that Zenith Bank notified its customers of the change through email of the international payment using a naira card.
The email reads:
“Please be informed that we have temporarily suspended the use of Zenith Bank Naira cards for International Automated Teller Machine (ATM) cash withdrawals and PoS transactions.”
“Additionally, the monthly card spending limit for web transactions has been reviewed from $100 to $20. This review is in response to today’s economic realities.”
GTB
Guaranty Trust Bank Plc in a letter to the customer said from December 31, 2022, it will no longer support international online and Point of Sale transactions on such cards., the Punch reports.
The letter reads:
“Dear customer, we write to inform you that you will no longer be able to use your Naira Mastercard for international online and POS transactions effective 31st December 2022. Kindly note that you can use your GTBank dollar card for all your international spending requirements.”
The bank added that its dollar card allows ATM withdrawal of $1,000 daily or the equivalent in the transaction’s local currency and has no limit to international PoS or online transactions.
Standard Chartered, Stanbic bank
Standard Chartered and also Stanbic bank have also asked their customers seeking to carry out transactions denominated in foreign exchange to apply for dollar or pounds sterling debit credit cards.
Some other banks have reviewed downward the usage of Naira debit cards overseas to $20 from $100 and finally to temporary suspension by banks.
Expect reacts
Ayodeji Ebo, managing director/CBO, Optimus by Afrinvest explains that the move by the banks was due to a reduction in forex supply from the Central Bank of Nigeria.
His words:
"I think this has to do with reduction in FX liquidity. The banks are not getting as much as they need and cannot be creating dollar liability for themselves."
CBN explains sale of Polaris banks to ex-president son-in-law
Meanwhile, in another report, the Central Bank of Nigeria has finally replied to the accusations that have trailed the sale of Polaris bank.
The bank was sold to Auwal Lawan Abdullahi who is the investor behind Strategic Capital Investment Limited (SCIL)
Lawal's total investment is N1.35 trillion but made an initial front payment of N50 billion
Source: Legit.ng
