CBN bans use of naira credit, debit cards abroad

The Central Bank of Nigeria (CBN) has completely restricted the use of naira-denominated credit and debit cards outside the country, the BBC website reports.

Quoting an unnamed source, BBC reported that access to foreign online retailers “will also be affected when the ban takes effect on 1 January 2016”.

The CBN is yet to make the decision public, but a bank’s customer said he had already received an email to that effect.

In an attempt to curtail forex demand and preserve Nigeria’s foreign reserves, the central bank has come up with a lot of restrictions on the use of cards abroad.

Banks progressively reduced the withdrawal limits on their cards while dollar-denominated cards can only be funded through in-flows into accounts and not by cash deposits.

TheCable also reported the ban placed by a bank on the use of naira debit cards in UAE, China and all African countries apart from Nigeria.