Nigerian banks limit debit card withdrawals abroad

Web Editor | ConsumerConnect

Nigerian banks are limiting the amount individuals can withdraw with their debit cards while abroad.

Reuters reports the bankers said this Wednesday, April 1, 2020, in an effort to ease foreign currency settlement risk.

The central bank is battling to conserve dollar reserves that are down 16% from a year ago after the Coronavirus outbreak triggered a sharp fall in the price of oil, Nigeria’s main export.

The oil price plunge has also prompted foreign investors to shed Nigerian assets.

Fidelity Bank said it would impose a new limit of $1,000 from April 1, down from $3,000 previously, a senior executive said.

Other lenders ─Zenith Bank and GTBank— have lowered withdrawal limits for individuals while abroad.

StanbicIBTC Bank said it had pegged its daily limit at $300.

Such moves have previously been at the behest of the Central Bank of Nigeria, but it was not clear if the regulator was behind the latest action.

The Naira is said to have hit fresh lows on both the official and over-the-counter spot markets after the CBN devalued the currency in March, and suspended Forex sales to retail currency traders.