The United Bank for Africa (UBA) on Thursday announced it has stopped international spending on its Naira cards, effective March 1, 2022.
In an email to all customers, the lender disclosed that it has reviewed Naira Card limits for international transactions.
For website-based transactions, UBA Naira cardholders are allowed just $20 per month spending limit while international ATM and Pos services are no longer available to UBA Naira cardholders.
On August 21, 2020, UBA had reviewed downward its international spending limit on Naira cards from $500 to $100 per month for both ATM and POS. That was during the peak of COVID-19 when Nigeria’s foreign revenue generation plunged and deepened forex scarcity.
The economy has since recovered from the pandemic-induced recession with foreign revenue now slightly up. Therefore, it was shocking that UBA will completely halt atm and pos transactions on Naira cards.
Other banks, like GTBank, recently reviewed upward its international spending limit to accommodate Nigerian students and other international shoppers. GTbank raised its monthly international spending limit from $100 to $200 for POS and online transactions in November 2021.
However, UBA continues to push its Dollar, Pounds and Euro domicile card to international customers.
“UBA Remember you can use your UBA Dollar, Pounds or Euro Card for international POS, ATM and web transactions. If you do not have one and would like to subscribe, please visit a branch close to you,” the bank stated.
Given that the announcement was made on the day Russia attacked Ukraine and bolstered global risk to the highest level in recent years, UBA may be responding to possible forex challenges that lie ahead, especially with Nigeria’s inability to capitalise on the current rise in global oil prices due to her weak oil production infrastructures.
Nigeria, Africa’s largest economy, depends on importation for most of its consumption. But weak foreign revenue generation due to the poorly developed manufacturing sector and failure to up oil production despite being the main source of the nation’s foreign revenue have dragged on Nigeria’s economic productivity and impeded new job creation.
