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 â€œwill also be affected when the ban takes effect on 1 January 2016â€³.
The CBN is yet to make the decision public, but a bankâ€™s customer said he had already received an email to that effect. In an attempt to curtail forex demand and preserve Nigeriaâ€™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.