Following the challenges of sourcing for foreign exchange to meet customers demands, Nigerian banks on Tuesday, restricted all Naira debit and credit cards to local transactions. Banks have in the past made frantic efforts to meet the forex demands of customers using the central bank and correspondent banks channels. The recent policy decision indicates that all may not be well with Nigerian banks as it over rules the earlier circular on $300 daily spending limits on the Naira denominated cards.
In an email to all customers, Diamond Bank, Standard Chartered Bank and Keystone Bank are asking customers to fund their domiciliary accounts with foreign currencies that will be link to their debit or credit cards. Their decision is informed by recent decline by correspondent banks to honour Naira denominated cards abroad.
Economic meltdown, coupled with forex scarcity, have resulted in about 44 private equity companies exiting their investments in Nigeria, South Africa, Kenya and Egypt markets last year, it has been gathered.
Ernst & Young (EY) and the African Private Equity and Venture Capital Association (AVCA) disclosed this in their latest reports on African investments.
The report, which was monitored on Ernst & Young’s website, said that many private equity companies cashed out their investments in Africa last year than any other time as currencies across the continent fell against a globally stronger dollar.
Inconsistent government policies may also account for the desperate measures being applied by the Nigerian Banks.
