“In the fullness of time”, I can only hope we can understand the root of this latest insanity.
The Central Bank of Nigeria, CBN, in continuation of its forex curbs, has restricted the use of Naira denomination cards overseas.
This is happening three months after it reviewed downwards the existing limit on the usage of naira denominated cards for crossborder payments.
In a circular to banks posted on its website yesterday, the apex bank stated that where a company requires a card for overseas payments, such firms should be encouraged to obtain foreign currency denominated cards, which would be issued against its domiciliary account, prepaid or credit card, “whose limits must be in line with the existing BTA provisions.”
The CBN further directed that henceforth banks must submit reports of all naira-denominated card transactions consummated overseas to the Nigerian Interbank Settlement System (NIBSS) on a daily basis.
According to the circular, which was signed by the Director, Banking and Payment System Department, Mr. Dipo Fatokun, “The report must be sent electronically in CSV format, via a file upload portal as specified by the NIBSS, which would include the Bank Verification Number (BVN) and the account numbers of the cardholder for each transaction.”
The CBN also directed banks to inform cardholders that the banking industry has instituted a tracking system on the use of naira denominated cards abroad, warning that violators of the fresh directive would be sanctioned.
Last April, the apex bank had pegged the existing limit on the usage of naira denominated cards for transactions overseas at $50,000 per person per annum, representing 66.7 percent below $150,000 where it stood. It also directed authorised dealers to ensure that the daily cash withdrawal limit embedded in the cards per person, per day is pegged at $300.
