Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a. with a fee of £3 per month, your representative rate is 27.7% APR (variable).
Nigeria hasn’t moved with the times as fast as other African countries, so it’s worth getting clued up on how to get the best out of your plastic.
The two major credit card networks are Visa and Mastercard, but due to widespread financial fraud, cash is still king in Nigeria. The country has only just started to offer American Express after years on the provider’s black list, so you may find it hard to use your Amex.
While many of the big hotels and businesses may affect credit cards, you are more likely to come across vendors that only accept cash payments.
Nigeria remains a cash-based society, so it’s recommended to have enough naira (NGN) on you to cover your back at all times. This might be especially necessary within smaller establishments, or in lesser-known towns across the country. You may also still need to pay in cash for smaller purchases, as many shops, restaurants and other businesses are keen to avoid the processing fees charged to vendors who accept credit card payments.
You’ll hear the word “dash” a lot in Nigeria – it can mean a bribe or a tip. You’re more likely to be asked for a “dash” as a tip rather than a bribe and it’s often appropriate to “dash” someone who provides a service for you, such as a taxi driver or a tour guide.
Cash machines are far more sparsely spread in Nigeria than you’re likely to be used to in the United Kingdom or other developed countries, so you face a bit of a journey if you need to use one.
Because they are so few and far between, you can expect a bit of a queue and it’s relatively common for these machines to be out of cash too. GTB is the most reliable.
For this reason, you may want to exchange plenty of pounds for naira before you fly out to Nigeria.
Find a great deal on your travel money for Nigeria
Nigeria has moved from magnetic-stripe to chip cards, and all banks in Nigeria now issue the latter. You’ll still be able to use your magnetic-stripe card in Nigeria, although you can expect some confusion. In the switching of technology, some retailers falsely believe that they can no longer accept magnetic-stripe cards while some others will not let you use them, to do their bit in reducing credit card fraud. All they basically need you to do is swipe your card instead of inserting it into the machine, and then get you to sign for the purchase.
If you use a chip-and-signature card, you can use it in Nigeria just about everywhere you find a manned credit card machine. However, some businesses are hesitant in accepting them because they’re not sure if it’s allowed and some others don’t accept them to cut down on credit card fraud. If you’re getting tickets from a machine, you’ll need to enter a PIN, in which case your chip-and-signature card won’t work.
Credit card fees can leave a noticeable dent in your pocket when you’re travelling overseas, so know what you’re up against well in advance and choose a card with no or low fees.
British credit card issuers typically charge a fee equivalent to 1% to 3% of your transaction, so carefully review your card’s fine print to avoid statement surprises. Some cards designed for travel come with no foreign transaction fees, so this could be a good time to switch.
Learn more about cards designed for overseas spending
If a retailer offers to bill your credit card in sterling, dynamic currency conversion comes into play. While this might sound like a good deal, you’ll actually end up getting a worse exchange rate, and you might also end up paying currency conversion fees. Whenever you’re presented with an option, choose to pay in the local currency.
Using your credit card to withdraw money from an ATM may not make sense unless it’s a bona fide emergency. Each time you withdraw funds from an ATM, you’re likely to pay a cash advance fee. Your APR for cash advances is normally higher than your purchase APR. Typically, you get no grace period and will start paying interest immediately. Again, some cards designed for overseas spending will waive this fee.
The table below serves as an example of how much extra you may pay to use your credit card in Nigeria.
Additionally, you can get an idea of costs by using these online currency conversion tools from Mastercard and Visa.
By exercising some caution when using your credit card in Nigeria, you’ll have a relatively trouble-free experience.
Remain alert to street crime, especially where two or more people work in distracting victims before decamping with their valuables. Instances of theft at airports are not uncommon, so stay vigilant while arriving and departing. There have been numerous instances of thefts from hired cars so don’t leave your wallet or purse in a parked car.
Ask yourself these simple questions before you leave so your spending in Nigeria does not hit any roadblocks.
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