Nigerian Banks Bar ATM Cash Withdrawal Abroad

A report has emerged that some Deposit Money Banks in Nigeria have barred their customers from using debit and credit cards to withdraw dollars, euros, pounds and other foreign currencies whenever they travel abroad.

The development will no doubt put business and leisure travellers, who may need hard currencies to meet some obligations abroad, in a difficult situation.

This is just as students who are studying abroad and often rely on withdrawing hard currencies with their Nigerian payment cards from Automatic Teller Machines abroad to meet certain needs may find the situation challenging.

In an investigation carried out by The Punch, it was revealed that the naira volatility of the past year is responsible for the development.

It was gathered that Guaranty Trust Bank Plc, Fidelity Bank Plc, Stanbic IBTC Bank and Standard Chartered Bank Nigeria were among the lenders that had suspended their ATM cash withdrawal services.

A top baker who pleaded not to be mentioned told the news outlet that:

“Each bank has various reasons for not yet activating their overseas ATM cash withdrawal service. For some banks, they ran into losses last year when the naira fell and, as such, they are trying to minimise their risks now.”

“For such banks, there is no plan to reactivate it. Some others banks are not ready to reactivate the service because they are trying to check customers who are doing round-tripping. It is for various reasons that the banks are not stopping yet.”