Banks have intensified a downward review of the spending limits on debit cards abroad as the scarcity of the foreign exchange (forex) in the country bites harder.
Two of the major banks, Stanbic IBTC and Ecobank, issued fresh notices to their customers, informing them of the reduction in the amount they could withdraw abroad.
The Stanbic IBTC, over the weekend, informed its customers of the new limits.
Now, customers with the debit master card can only spend $350 a day online or on a Point of Sale (POS) terminal as against the previous daily limit of $1000 a day.
Cash withdrawal from ATMs outside the country has also been reduced by 50 per cent from $300 a day to $150 a day.
It also said the total amount that could be withdrawn from any ATM abroad on a Stanbic IBTC debit master card is $750, while the total amount that could be spent online and on POS in a month is now $1,750. Total cumulative monthly spending on all the two platforms is now only $2500.
The new lower limits came as the country’s dollar reserves keep dwindling, forcing the Central Bank of Nigeria (CBN) to implement policies aimed at slowing down the dwindling reserves. Other banks are also expected to announce similar cuts.
Also, Ecobank, in a notice issued on Friday, said the daily cash withdrawal had been reduced from $300 to $100 a day, or its equivalent in other foreign currencies when you are abroad.
Ecobank cut down all its cards limit to $100 a day. The standard card from $3000 to $100 a day (on POS/web); Gold Card from $4,000 to $100 a day (on POS/web) and Platinum card from $5,000 to $100 a day (on POS/web) with the cumulative annual spending limit for all cards to $50,000.
The scarcity of the forex shut the value of dollar last week by about 10 per cent at the parallel market. The exchange rate of the naira to the dollar was N380 a dollar in Abuja and Lagos as at last Friday.
Speaking on the restriction, Ibrahim Mohammed, a dealer on used vehicles, said the restriction would surely increase the hardship they were already facing.
He said that before now, they were allowed to withdraw up to 300 euro a day, but now, the 100 euro or so would be very difficult to take care of their daily needs.
He said that most of the car dealers were no longer importing because when you import at the current rate of dollar, you can’t make any gain.
“We are just selling the old order, that is why the prices of cars are still relatively stable,” he said.
Samuel Owolabi, a Stanbic IBTC customer who spoke to Daily Trust said: “I have long anticipated this cut because of the trend in the banking industry. Most of the other banks implemented this cut with the turn of the new year; so this is not coming to me as a surprise at all.”
He said that in anticipation of the development, fervent travellers like him had deviced other means of surviving, including opening multiracial accounts to enable them get something more than the limit a single bank is willing to offer.
Another customer, who identified himself as Tanimu said: “I started sourcing my dollar needs from autonomous sources even before the reduction in the limit, as the previous limit was barely enough for me.”
He further noted that resumption of dollar deposit by deposit money banks had helped to ease the pressure, as those with outstanding dollar bills can simply deposit against their next trip
“With that we can transfer through Western Union to settle bills,” he added.
Sources said more banks would follow suit on the reduction of withdrawal limits.
