News

Nigeria slashes daily limit for foreign ATM withdrawals

Domestic ATM and debit cards are now limited to $300 per day for foreign ATM cash withdrawals, POS transactions and e-commerce purchases.

August 20, 2015

In defense of its national currency, the naira, Nigeria has placed limits on domestic ATM withdrawals, and on foreign transactions using existing naira debit cards.

According to a report by Vanguard, the Central Bank of Nigeria has set a new out-of-country ATM withdrawal limit for naira-based debit cards of 60,000 naira ($301) per day, compared with a previous limit of 150,000 naira per day ($753). Total annual withdrawals may not exceed $50,000 under the new rules.

Limits on foreign POS and e-commerce transactions also have been reduced to 60,000 naira ($300) per day for naira-based cards, compared with the previous limit of 2 million naira ($1,037).

Nigerian banks are offering ATM cardholders a workaround that will allow them to use the old, higher limits for in-country purchases. The solution requires that Nigerians request an additional debit card that is disabled for all foreign transactions.

Guaranty Trust Bank PLC told customers that the limits were imposed due to the bank's difficulty in sourcing foreign currency to settle international transactions on naira-based cards.

Some costs incurred abroad, such as medical bills, school fees, mortgages and foreign currency-based credit cards are exempt from the new rules, the report said.