• As Banks suspend ATM card usage abroad, over Dollar scarcity

The Commonwealth Enterprise and Investment Council (CWEIC) would stop at nothing, until it creates and consolidate the maritime industry, as a key driver of economic growth and trade, particularly quadrupling by 2050, carriage of cargo by sea, beginning with Nigeria.

Moregate Communications Chieftain, Alex Johnson who confirmed this also highlighted of CWEIC commitment, in collaboration with the Ship Owners Association of Nigeria (SOAN) to connect maritime business interests with state-level representatives and organisations from across the Commonwealth. The theme was “The Future of the Maritime Industry in Nigeria”.

“Nigeria was the focus on this occasion, due to its status as Africa’s largest economy and its huge maritime ecosystem. Nigeria’s 850km coastline and 8,600 km of inland waterways – the second longest in Africa – offer substantial potential investment and development opportunities across shipping, mining, manufacturing and service industries”, he observed, noting that the event,  a Commonwealth Maritime Initiative which held at Marlborough House, London actually hailed Nigeria’s maritime industry as a driver of economic growth and alternative revenues for a country that is trying to diversify away from a reliance on oil, prices of which have slumped in recent years.

Hassan Bello addressing participants at the Autumn Conference

The CWEIC posited that Focusing initially on Nigeria before expanding across the Commonwealth, was probably the best option, as it also enables the CMI to focus on maximising commercial opportunities in an industry that has often suffered from chronic underinvestment.

“And with the recent announcement from President Buhari’s administration of economic reforms aimed at transforming Nigeria into one of the most attractive investment destinations in the world by 2019, the timing of the event was apt: maritime is set to play a key role in Nigeria’s economic future”, the body indicated further, calling worthy attention to strongly delivered positions by the Nigerian Shippers Council Executive Secretary, Hassan Bello and Federal Ministry of Transportation Permanent Secretary, Mr Sabiu Zakari.

Specifically, Hassan Bello, while offering a noteworthy example of strong maritime investment prospects in Nigeria, spoke of plans to establish a Nigerian National Carrier fleet, intended to be established as a joint venture between Nigerian investors and foreign partners, and of which the Nigerian government has already pledged a number of enabling measures to ensure its rapid growth.

Bello highlighted Ship acquisition, building, repairs and training needs, as well as technical assistance for maritime professionals as vibrant areas offering significant opportunities for foreign and domestic investors alike; backed by Zakari’s clear message: Nigeria is open for business and is committed to becoming a regional maritime hub, but needs private sector investment, partnership and expertise to realise its vision.

The event dissected presentations from the Nigerian Shippers’ Council, UK Hydrographic Office (UKHO) and Transport Malta, and concluded with an address by guest of honour Mr Sabiu Zakari, Permanent Secretary to the Ministry of Transport, Nigeria.

The CMI Co-chair and Chairman of the SOAN, Engr Greg Utomwen Ogbeifun said the SOAN was focused at ensuring the right conditions, the perfect environment and collaboration from “insightful, productive and profitable meeting of minds“.

“The roundtable gave CMI members the chance to network and explore the extent of Nigerian maritime investment opportunities, learn about best practices and challenges in the industry, and potentially be at the forefront of radical and exciting change in the Nigerian economy. 

“The UK is the world leader in maritime services, and by hosting this event in London we ensured conditions were ideal for an insightful, productive and profitable meeting of minds”, Ogbeifun concluded.

It is strongly believed, that following the success of the event, CWEIC would expand the Maritime Initiative across the Commonwealth, collectively highlighting further, maritime investment opportunities across the many developing, coastal economies within the 53 member – States, garnering supports for private sector companies and governments, promoting economic activity, working with member companies to expand their businesses, while assisting with new investments in any Commonwealth country.

In the meantime, Deposit Money Banks have begun suspending their Automated Teller Machine cards (debit and credit) from working overseas as dollar scarcity continues to hit the economy badly.

Stanbic IBTC Bank, Standard Chartered Bank Nigeria and Guaranty Trust Bank on Friday announced the suspension of their overseas ATM card services.

Also suspended by the banks are online transactions priced in foreign currencies. This means that customers of the banks will no longer be able to use their debit or credit cards to make online transactions that are denominated in dollars, euros, pounds sterling and other foreign currencies.

In a note to its customers on Friday entitled: ‘Suspension of international transactions on naira debit cards’, Standard Chartered Bank Nigeria said, “Please be informed that effective immediately, your naira denominated debit cards will no longer be functional for international transactions.

“This is due to the current volatility in the foreign exchange market. Your naira-denominated debit cards can only be used for local transactions at Point of Sale terminals, Automated Teller Machines and online for Nigerian retailers.”

In a text message to its customers on Friday, Stanbic IBTC Bank similarly said, “Dear customer, kindly note that effective October 18, 2016, your ability to carry out transactions priced in foreign currency using our naira debit and credit cards will be suspended. We apologise for any inconvenience in this regard.”

Both Stanbic IBTC Bank and Standard Chartered Bank Nigeria advised customers seeking to carry out transactions denominated in foreign exchange to apply for dollar or pounds sterling debit credit cards. According to them, the dollar or pounds sterling debit or credit cards will be linked to the customers’ domiciliary accounts.

GTBank also announced the suspension of the ATM cash withdrawal service abroad. The lender also slashed its monthly ATM forex transactions to $100.

In a notice to customers on Friday entitled: ‘Review of the international spending limit on your naira Master Card’, the bank stated, “We write to inform you of the monthly spending limits currently applicable when using your GTBank naira Master Card for international payments via PoS and online. Previous monthly limit via PoS and online was $250; the new monthly limit via PoS and online is now $100. Kindly note that ATM cash withdrawal on your naira MasterCard is now only available in Nigeria.”

The development will make students studying in the United Kingdom, United States, Canada, Ukraine and other parts of the world to face more challenges getting their monthly stipends from their parents.

Most of the students had relied on the ATM card withdrawal to get their monthly stipends from their parents before now.

This means customers seeking to do foreign transactions will have to open domiciliary accounts and fund same with dollars, pounds or euros purchased from the parallel market at the prevailing exchange rates.

Although other banks have yet to announce the suspension of ATM card services abroad, findings by our correspondent showed that many lenders had reduced drastically the amount that customers could withdraw via ATMs abroad.

This is despite the fact that the banks have in the past few months reduced the monthly total amount of forex-denominated transactions that customers can do, using their naira debit or credit cards via ATMs and PoS terminals abroad as well as online payments or transactions.

As of last week, findings showed that some banks had slashed their daily ATM withdrawal limit abroad from the $300 advised by the Central Bank of Nigeria’s Bankers Committee to $100 due to their inability to source for dollars to fund the transactions.

Unconfirmed sources said some banks had reduced their monthly ATM withdrawal limit abroad to $100.

Top banking officials close to the development told our correspondent under the condition of anonymity that banks were increasingly finding it difficult to fund their foreign-currency denominated services, especially online forex transactions and overseas ATM withdrawals, as well as PoS usage overseas by customers.

A top official of Deposit Money Bank, who spoke on the condition of anonymity, told our correspondent on Sunday, “We have to stop the services. Formerly, we were sourcing forex at high prices and we were selling same to customers at similarly high prices. But the situation is now tense; the dollar scarcity has assumed a new dimension.

“This is coupled with the fact that some bank customers are using the platforms to do round-tripping. It is high time we stopped it.”

The decision by some banks to suspend overseas ATM card services and online forex transactions came barely one week after the CBN, through the Bankers’ Committee, raised concerns about what it called the indiscriminate and suspicious manner in which some bank customers were spending dollars and other foreign currencies abroad through their naira debit cards.

Consequently, the regulator said it had concluded that bank customers who spent above the $50,000 annual forex limit it imposed would be barred from the nation’s forex market.

The Director, Banking Supervision, CBN, Mrs. Tokunbo Martins, stated this after the 329th Bankers’ Committee meeting held at the apex bank’s office in Lagos on Wednesday.

She said, “In the CBN’s move to manage the demand for forex, there was a rule that was put in place that people were not allowed to withdraw more than $50,000 annually on their naira debit cards.

“For a while, the policy has been abused by bank customers, and the CBN has not taken any step to that effect. We have decided to take the step now to enforce the rule. So, we want members of the public to remember that that rule is in place.

“All your accounts are linked to a particular Bank Verification Number. Now, that the BVN only allows you to withdraw only $50,000 per annum, if people continue to breach that rule, they will lose access to forex market.”

Dollar scarcity has been ravaging the economy after the price of crude oil, Nigeria’s main forex earner.

It crashed from $110 per barrel to around $44 per barrel from June 2014.

The nation’s foreign exchange reserves have been depleting since then.

Additional report from Punch