CBN Cuts Overseas Spending To $50,000 Annually


CBN Governor, Godwin Emefiele

Following last week’s announcement by the bankers committee that the daily spending limit on the naira debit cards of Nigerians living abroad would be reviewed downwards, the Central Bank of Nigeria (CBN) has cut the annual foreign spending by 66.7 per cent. The annual limit on the usage of naira denominated cards which was initially $150,000 was cut down to $50,000 while daily card usage limit was brought down to $300 per person.

The CBN in a circular issued and signed by the director, Trade and Exchange Department, Olakanmi Gbadamosi, noted that the new limit takes effect from Monday, April 13, 2015. The circulars high was made available yesterday read: “all authorized dealers and the general public are hereby informed hat with effect from the date of this circular (13th April, 2015) the existing limit on the usage of naira denominated cards for transactions overseas has been reviewed downward.

“Accordingly, the limit has been reduced $150,000 to $50,000 per person per annum. In addition, all authorized dealers are to ensure that the daily cash withdrawal limit embedded in the card per person per day is pegged at $300.


“Authorised dealers are to ensure strict compliance whit this new limit and render monthly returns of the transactions to the director, Trade and Exchange Department, CBN not later than 5th day of the following month.”

The circular did not specify if there would be restrictions for individuals with multiple naira denominated cards from different banks. Last week, rising from the 321st meeting in Lagos, the Bankers Committee said as part of measures to reduce the pressure on the naira, there would be a downward revision of the annual spending limit on naira debit cards.