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American Express Launches First Business Credit Card in Nigeria, Easing Dollar Access for Businesses

Boom RadioNG | May 10, 2024

American Express (Amex) is making a splash in Nigeria’s business landscape with the launch of its first-ever business credit card in the country. Partnering with local neobank O3 Capital, Amex aims to address the persistent challenge of dollar accessibility for Nigerian businesses.

Credit Card Options and Addressing Dollar Scarcity

Unveiled in Lagos, the new card offers businesses a $10,000 spending limit and a 45-day repayment window for international transactions. O3 Capital-Amex cards for personal and household use will also be available, with spending limits ranging from $10,000 to $20,000.

This initiative comes amid Nigeria’s ongoing struggle with dollar scarcity, a significant factor in the local currency’s volatility. Since mid-2023 reforms, the naira has lost a staggering 65% of its value against the U.S. dollar.

Amex Steps In: Easing Access to International Transactions

The partnership between Amex and O3 Capital seeks to alleviate these pressures. While the Central Bank encourages independent dollar sourcing by banks, accessing dollars remains a hurdle. Consequently, many Nigerian banks have restricted or halted international transactions on naira-denominated credit cards, primarily offering these services to high-net-worth clients.

Amex’s entry into the Nigerian market with dollar-denominated credit cards provides businesses with a new avenue to conduct international transactions and potentially navigate the challenges of currency fluctuation.

Written by Boom RadioNG

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