APRIL 27, 2015 BY BABAJIDE KOMOLAFE, ADERONKE ADEYERI, TUNDE OJO, OLACHI USUWA
B
ank customers are divided over the reduction in the amount of foreign exchange that can be accessed for overseas transactions through Naira debit/ credit cards. Two weeks ago, the Central Bank of Nigeria (CBN) reduced the limit on Naira debit card for overseas transactions to $50,000 per person per annum from $150,000. It also reduced the limit for daily withdrawal to $300 per day from $1,200 per day. The reduction is on Naira denominated MasterCard or Visa Card, linked to bank accounts in Nigeria. A cross section of bank customers who spoke to Financial Vanguard on the policy were however divided on the necessity and impact of the policy on the economy. While some criticised the reduction, saying it would hurt their businesses, others commended the reduction, saying it would help curb wastage of foreign exchange and corruption. Criticising the new limit, Mr. Chiedu Igwe, an importer said, “The idea of reducing the debit card limit to $50,000 per person per annum is discomforting. I travel out often to get items for my trade and that aside; I spend money on vacations using a Naira debit card. So with this new limit on debit card, how am I going to keep up with my business and personal foreign exchange needs while I am overseas? I wish the implementation of the policy could be re-adjusted if possible to help businessmen like me. Another businessman, “Mr. Lekan of LakeSide Clothing said, “I am not comfortable with the reduction, because I travel overseas to purchase most of what I sell in my stores. I make use of my debit card for shopping whenever I travel abroad, and I travel more than once in a year. So this new limit will disrupt my business plans.” Corroborating these views, Mr. Umaru Hassan, a customer of Diamond Bank, Apapa, said that the reduction in limit is not good for business people, as most of them always travel abroad to purchase
Mixed reactions trail limit on debit cards zBanks commence implementation goods and conduct other business related activities that involves the use of money. “The idea of reducing the limit to $50,000 per person, per annum is an indirect way of reducing their ability to do business”, he said, adding that the CBN should reverse the policy. On the contrary, veteran producer, director and actor, Prince Jide Kosoko commended the reduction, saying it would help curb the outrageous spending of many Nigerians. He said, “CBN has brought up the policy to redeem the value of the Naira. I know
this will not go well with some Nigerians but the CBN has the power to do it. Many Nigerians travel abroad and spend their annual savings within one month in the name of holidays”. Similarly, actress Ronke Ojo, commended the reduction saying it is another means of eradicating corruption. “It is obvious that electronic banking has generated some hiccups in the economy. However, the policy is a means to curb our excesses and eradicate corruption in the country,” she said.
According to Mr. Harrison Owoh, Chief Executive Officer, H.J Trust Bureau De Change, “The reduction in limit would minimise the various abuses associated with the use of Naira debit card overseas, like round tripping. He noted that some people use the card to withdraw dollars abroad at cheaper exchange rate, and then import the dollars and exchange them at higher exchange rate. Banks commence implementation Meanwhile, banks have commenced implementation of the reduction in limit on Naira debit card Continues on page 22
CONFERENCE - From Left, Senior Adviser on Public -Private Partnership to Oyo State Government, Folake Akinleye, Managing Director, Bank of Industry, Rasheed Olaoluwa, Deputy Governor, Oyo State, Otunba Moses Adeyemo and Executive Director, Small and Medium Enterprises, Bank of Industry, Waheed Olagunju at the Commissioning of Zonal Office, Bank of Industry in Ibadan. C M Y K