The usage of credit card while travelling abroad has been banned for Nigerians as a measure by the Federal Government to try to check the flow of foreign exchange out of the country.
The
ban will be effected from January 1, 2016 and the access foreign online
retailers would also be affected by the measure. One email from a bank
to its customers have however mentioned that the ban is just a ‘temporary’ measure
The
largest economy of Africa, Nigeria has spent billions of dollars
propping up the currency since it fixed the exchange rate in February
and tightened rules to curb speculations. The unofficial value of the
Nigerian currency, the Naira has plunged over many months due to a sharp
fall in the global oil prices which is the main commodity of export for
Nigeria.
As of now it is not clear exactly how many people will be affected by this measure but according to BBC reporter Bashir Sa’ad Abdullahi
in the capital, Abuja wealthy Nigerians travelling abroad on a regular
basis are used to use their local cards for shopping and all other kinds
of transactions. Some top end shops in London even have signs in Hausa
in order to cater to the large number of Nigerian customers.
Standard Chartered, a well-known Global Bank
had notified its users about the ban. Back in June the Central Bank
banned the businesses from accessing hard currency to import about 40
items. The list included Indian incense, plastic and rubber products,
soaps and even private jets. The amount that the Nigerians could spend
on credit cards abroad had already been reduced by almost all the major
banks.
While use of credit cards have a plethora
of advantages like convenience, record keeping, low cost loans, Instant
cash, perks, building positive credit, purchase protection, balance
surfing etc. it also has a number of disadvantages like overuse,
paperwork, high cost fees, unexpected fees, no free lunch, deepening the
debt, homework and teaser rates. Bring the economy would however need
more measure other than banning the use of credit cards abroad.
posted by Abuja amebo reporter.
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