Confused about her inability to do so, she proceeded to use her Automated Teller Machine (ATM) cards for other international services, but surprisingly, her efforts became fruitless as she was met with similar fate.
Having been disappointed with the failed transactions, Okusanya then reached out to this writer out of curiously via his Twitter handle @damistorian, who vividly explained to her that while some Deposit Money Banks (DMBs) in the country have suspended the usage of naira-denominated debit cards for international transactions, others have limited the monthly spending limit from more than $40,000 seven years ago to as low as $20.
Sadly, it is not only the host of Feyi’s YT that is challenged with this reality. A curious Twitter user @iAmChigozie__ also recently tweeted: “Wait. Why is card payments on play store with access bank cards not working? For weeks now o. Which kind wahala be this? I cant pay for my music, netflix and all online payments cos of this nonsense. Do you guys want us to change bank or what?”
A look into the newly-introduced policy by Nigerian banks
This writer understands that as foreign exchange (forex) continues to be scarce, DMBs that still allow international transactions via naira-denominated ATM cards, some months ago, informed their customers that the limit has been reviewed.
For instance, the United Bank of Africa (UBA) was first to take the decision when it announced $20 as its new limit on a monthly basis.
“In line with our promise to keep you updated on services, we have reviewed Naira Card limits for international transactions, and this will take effect 1st of March, 2022,” the bank said. “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 said in a statement.
Also citing economic realities, Zenith Bank, in a notice addressed to its customers, stated that it was reducing its international spending limit on its naira cards to $20 and it was suspending international ATMs and point of sales (POS) transactions.
Like Zenith Bank and UBA, First Bank announced that due to the current market realities on forex, it had reduced its spending limit to $50.
Sharing the same sentiment on this matter, a financial analyst, who preferred not to be mentioned in this report, explained that “It is an open secret that Nigeria depends on revenue from oil for 90% of its forex, but that has suffered a major blow as COVID-19 ravaged the oil sector on a global scale, such that prices significantly dropped.”
“As of Wednesday, May 25, Nigeria’s external reserve dropped to a seven-month low. This was as politicians, exporters, amongst others, tightened their grip on the dollar,” he said, adding that the reserve fell to $38.57 billion.
When this writer reached out to Osita Nwanisobi, the Spokesperson of the Central Bank of Nigeria (CBN) for comment, he declined the request, saying “go and write whatever you want to write. I’m busy now!”
Actors and artistes lament
Nollywood actress Bolanle Babalola, in a chat with this writer, lamented how the development is affecting streaming figures on platforms like Netflix.
Her words: “It is affecting streaming figures because when people can’t watch, our projected success will suffer a setback.”
Corroborating Babalola’s submission, Monalisa Stephen, also an actress, stated that “Nigeria has seen a huge rise in the film industry since Netflix was launched in Nigeria. The platform has allowed for Nigerian films to be streamed nationally and internationally. However, the recent development disallowing Nigerian ATM card users to make payment for international services like Netflix, has hit the film industry badly. This is because having subscribers cut off will mean less or no streaming ability for customers.
“It bothers me as an actor because having Nigerian films on Netflix is a great opportunity to reach a wider range of Nigerian film lovers and sadly this is declining”.
Like Babalola and Stephen, singer Kendickson said local listeners have not only been limited, but the revenues of his colleagues have significantly suffered.
For Neophlames, another artiste, while the limit placed on naira-denominated ATM cards is denying music lovers the pleasure they should enjoy, it is also affecting him and his colleagues, as their streaming figures have declined.
It is noteworthy to state that neither Netflix, nor Spotify are the ones declining payment from their Nigerian subscribers. However, to address the country’s foreign reserve which recently recorded a seven-month low, DMBs notified their customers spending limit. With this, they believe they can successfully avoid wastage.
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