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Nigeria’s Deposit Money Banks to Stop ATM Cards From Oversea Transactions

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Nigeria

Deposit Money Banks have commenced a process to stop all customers from using their payment cards, popularly known as Automated Teller Machine cards, for dollar-denominated transactions when they travel abroad with effect from January 1, 2016.

Investigation also revealed the banks would not allow their customers to use naira-denominated ATM cards locally for transactions denominated in forex.

This means bank customers will not be able to use their cards to buy products from foreign e-commerce sites like e-bay and amazon.com in which payments are made in forex.

The development follows the lingering scarcity of foreign exchange, especially the dollar, to settle obligations arising from customers’ use of the ATM cards for forex-denominated transactions.

Already, Standard Chartered Bank has notified its customers that from January 1, 2016, they will not be able to use their naira-denominated ATM cards for transactions that are denominated in foreign currencies, either locally or when they travel abroad.

In a notice to its customers, Standard Chartered said, “This is to notify you that from January 1, 2016, your naira card will no longer be enabled for international use. This is as a result of the limited foreign exchange supply in the financial market.”

Asked how long the suspension of cards from international transactions would be, the spokesperson for Standard Chartered Nigeria, Mrs. Dayo Adurogbo, said, “We cannot give a definite date. It depends on how soon it is available. We will do everything to meet our customers’ demand once it is available.”

Further findings showed that a number of other banks had stopped customers from using their ATM cards abroad but had yet to officially communicate this to them.

Some customers told our correspondent that when they notified their banks of plans to travel and the need to enable their cards work overseas, they were simply informed that the cards could not be enabled for now due to issues relating to forex scarcity.

Findings by Sunday Punch showed others banks might issue notices similar to that of Standard Chartered Bank before the end of the year.

“We had some discussions recently and some top bank officials said they would stop customers from using their naira-denominated cards for international transactions due to the serious challenges in getting forex to settle their international partners,” a top bank official, who spoke on condition of anonymity because he was not authorised to speak on the matter, said on Friday.

The current situation means customers travelling abroad for Christmas and New Year may face severe payment challenges, a situation that may mar their shopping plans.

The fall in prices of crude oil, the main earner of foreign exchange for Nigeria, has made the nation’s forex income to reduce drastically, creating dollar scarcity crisis for the Central Bank of Nigeria.

The CBN has been rationing dollar to banks, importers and other forex users as the nation’s foreign exchange reserves continue to deplete, hitting $29.4bn on December 7, 2015.

The PUNCH had exclusively reported on Thursday that banks had cut the amount that their customers could spend using their debit and credit cards abroad by between 70 and 90 per cent. This took effect during the first week of December for the majority of the banks.

Specifically, banks cut customers’ card spending in foreign currencies from the annual $50,000 allowed by the CBN to between $5,000 and $15,000.

According to findings by our correspondent, Ecobank Nigeria Plc has reduced its limit from $50,000 to $5,000, with a maximum of $500 monthly and $100 daily expenditure.

Skye Bank Plc, in a notice to its customers via email, also slashed its international card spending limit from $50,000 to $12,000 annually, a maximum of $1,000 monthly and $100 daily.

Wema Bank Plc also slashed spending on its payment cards from $50,000 to $10,000 annually, $1,000 monthly and $100 daily.

Although other banks have yet to confirm their new international card spending limits, findings by our correspondent revealed that the new limits for most of them ranged from $5,000 to $15,000 annually, and $500 to $1,000 monthly.

Punchng

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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SMEs

Fidelity Bank To Develop SMEs Capacity in Non-oil Exports Sector

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Fidelity Bank SMEs Capacity-Investors King

In furtherance of its resolve to help Nigerian businesses build sustainable export capabilities, leading Nigerian lender, Fidelity Bank Plc, is set to host the 11th and 12th editions of its highly acclaimed Export Management Programme (EMP).

Launched in 2016, the EMP is targeted at preparing participants for real-time experiences in the international non-oil export markets and the broader export market at large. The session typically covers a wide range of topics including Export documentation, Selection and Implementation of Supply Chain Management for Exports, Application of Export Development Business Processes amongst others.

Speaking on the programme, the Managing Director, Fidelity Bank Plc, Mrs. Nneka Onyeali-Ikpe noted that, “As a leading supporter of small businesses, we introduced the EMP five years ago to bridge the knowledge gap in the export business locally and to help participants to compete effectively in the global export market. Given the success, we have recorded in the course of the programme and following the yearnings of potential participants, we decided to host an edition of the training in Kano for those who are unable to attend the session in Lagos.”

While EMP 11 is scheduled to hold at the Lagos Business School (LBS), Lekki, Lagos between 4 and 8 October 2021; EMP 12 would hold at a soon-to-be-announced venue in Kano State from 11 to 15 October 2021. The sessions would be facilitated by leading faculty from LBS, Nigerian Export Promotion Council (NEPC) staff as well as experts in financial management and exports.

Fidelity Bank has over the years demonstrated its resolve to grow the non-oil export side of the economy through strategic initiatives and partnerships. For instance, the bank provided over N32.7 billion in credits to businesses operating in strategic sectors including rice, dairy, poultry, oil palm and cocoa in 2019. The bank has also successfully leveraged strategic partnerships with the Central Bank of Nigeria (CBN) and Development Finance Institutions (DFIs) under various industry targeted intervention funding programmes to enhance access to credit for eligible players in the agribusiness and non-oil exports space with the aim of addressing food security gaps and enhancing foreign exchange earnings.

“The benefits of supporting the non-oil sector of the economy cannot be overemphasized given the immense benefits that it provides to the economy and the nation in terms of providing much needed foreign exchange investments, increasing our Gross Domestic Product (GDP) and employment generation. This informs our decision to host the EMP regularly and we enjoin interested entrepreneurs to take advantage of this initiative to take their business to the next level,” Onyeali-Ikpe explained.

To register for the event, kindly visit www.fidelitybank.ng

About Fidelity Bank Plc

Fidelity Bank is a full-fledged commercial bank operating in Nigeria, with about 6million customers who are serviced across its 250 business offices and various other digital banking channels. The bank has in recent times won accolades as the Best SME Friendly Bank, Best in Mobile Banking and the Most Improved Corporate/Investment Bank among several industry awards and recognitions. The bank was also ranked the 4th Best Bank in the Retail Banking Segment in the 2017 Banking Industry Satisfaction Survey conducted by KPMG.

Focused on select niche corporate banking sectors as well as Micro Small and Medium Enterprises (MSMEs), Fidelity Bank is rapidly implementing a digital-based retail banking strategy which has resulted in an exponential growth in savings deposits over the last 3 years and a corresponding surge in customer enrollment on the bank’s flagship mobile/internet banking products.

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Afrexim and Asoko Partner to Help List African Companies

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Afreximbank - Investors King

Asoko Insight, Africa’s leading provider of corporate data and engagement services, is pleased to announce a partnership with Africa Export-Import Bank that will help African companies list on its due diligence platform, the MANSA.

Launched by Afrexim in 2018 to counter the cuts in trade finance and investment financial flows to Africa, MANSA aims to be a single source of the primary data required for Customer Due Diligence (CDD) and Know Your Customer (KYC) checks on African entities. The transparency MANSA provides will address key trade-related challenges facing the continent, including the lack of market information, the high cost of doing business in Africa and the challenges around discovering African counterparties.

The corporate information gathered through this KYC platform provides an additional layer of confidence for international financiers and African companies seeking business partners,  unlocking the flow of capital and creating a more transparent operational landscape for trade and investment.

Onboarded as an official data partner for the project, Asoko will host access to the MANSA platform on its Digital Engagement platform through which African companies can register and submit their CDD/KYC information to be listed on the MANSA platform.

Rob Withagen, co-founder and CEO of Asoko Insight, said, “Easing access to African companies for trade and investment opportunities is at the core of Asoko’s work. MANSA is a key tool for facilitating data sharing about members of Africa’s vibrant private sector and we’re pleased to offer a route to it via our Digital Engagement platform.

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HOPE Consortium and Astral Aviation Sign MOU to Enhance Vaccine Distribution Solutions in Africa

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HOPE Consortium - Investors King

As part of its continued commitment to vaccine distribution in Africa, the HOPE Consortium has partnered with Kenya-based cargo airline, Astral Aviation, to offer vaccine distribution solutions to Africa. This highlights the HOPE Consortium’s efforts in reinforcing partnerships that focus on fighting the COVID-19 global pandemic, as well as fulfilling the organisation’s mission as a global logistics facilitator, by aiding in vaccine delivery.

As part of the partnership agreement, both entities will focus on intra-African cooperation to enhance vaccine distribution within the African continent. The HOPE Consortium will utilise Astral Aviation’s comprehensive network, technologies, and market expertise, to support its global objective of facilitating vaccine availability with a specific emphasis on the African continent. The alliance will ensure timely delivery of vaccines and critical supplies to all 54 African nations.

Astral Aviation operates a diverse fleet of 14 freighter aircraft and provides innovative, flexible, and cost-effective UAV (Unmanned Aerial Vehicle) and UAS (Unmanned Aerial Systems) integrated drone-based solutions, as well as warehousing solutions to both in-store and remote locations.

This synergetic collaboration with the HOPE Consortium will see Astral Aviation provide capacity for vaccine deliveries on its scheduled and charter freighter network, in addition to world-class drone solutions and systems to Africa, with the purpose of facilitating immunisation programmes.

Commenting on the partnership, Mr. Sanjeev Gadhia, CEO of Astral Aviation said: “We are truly honoured to partner with the HOPE Consortium and participate in the critical distribution of COVID-19 vaccines, based on our track record in performing humanitarian initiatives and vaccine flights within Africa. Astral will add further technological and warehousing solutions for distribution of the COVID-19 vaccines from the hub in Abu Dhabi, to all the 54 countries in Africa directly or via its Nairobi Hub, which occupies 9000 m2 of cold-storage facilities.”

It is worth mentioning that Astral has also been selected by UNICEF to perform vaccine flights for COVAX and for the African Union via the African Medical Supplies Platform.

Through this partnership, the HOPE Consortium furthers its end-to-end supply chains required to distribute vaccines from their base in Abu Dhabi to all African countries. The HOPE Consortium has geared its operations to transport millions of critical COVID-19 vaccines to any country in need and thus far has handled over 100 million vaccine doses across 40 countries.

Robert Sutton, Head of Logistics Cluster, Abu Dhabi Ports, said: “Africa has always been a high priority market for the HOPE Consortium, and to that end, we are pleased to join hands with Astral Aviation. With a track record of operating over 20 years within Africa, their expertise provides a new dimension towards achieving our overarching objectives. This partnership reinforces the HOPE Consortium’s aim of creating a sustainable ecosystem, based on our collective global networks, logistics and supply chain capabilities, in order to facilitate vaccine distribution across the world. Our partnership with Astral Aviation is another benchmark towards our commitment to serve every country, region, and locale. We are confident that this partnership will help enhance HOPE Consortium’s efforts in Africa and ensure that no one is left behind in the quest against the pandemic.”

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