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Timetric, a London-based research and advisory firm, has said restrictions on card payment transactions abroad imposed by the Central Bank of Nigeria (CBN) are expected to restrain growth of payment cards.  

According to a statement released on Wednesday, Timetric said the CBN's initiative to boost electronic payments is undermined by restrictions on card transactions abroad. The cashless policy was launched to promote electronic transactions and reduce Nigeria’s dependency on cash transactions.

Given the foreign exchange crisis in Nigeria caused by the fall in oil prices, the apex bank had restricted the use of naira-denominated credit and debit cards outside the country. However, the ban was partially lifted in January 2016, although with limits on transaction values.

“These restrictions are expected to reduce card use for outbound expenditure and purchases from foreign e-commerce sites, which in turn, might result in fewer payment card transactions,” Timetric’s analyst Ravi Sharma stated today.
 
Founded in 2008, Timetric operates in over 13 cities around the world including London, New York, Frankfurt, Hong Kong and Sydney. Timetric provides financial and economic research services, compiled by local experts, across the following industry sectors: construction, financial services, infrastructure, insurance, mining, and wealth.