American Express Co. has entered the Nigerian market with its inaugural business credit card, marking a significant collaboration with local neobank O3 Capital.
This partnership holds the potential to bolster dollar accessibility for businesses operating in Nigeria, a move that could significantly impact the West African country’s financial landscape.
According to Bloomberg, the newly launched card, unveiled on Thursday in Lagos, Nigeria’s commercial hub, provides businesses with a spending limit of $10,000 and offers a repayment period of up to 45 days for international transactions.
Additionally, other O3 Capital-Amex cards, tailored for personal and household use, will feature spending limits ranging from $10,000 to $20,000.
President of Global Network Services at American Express, Mohammed Badi, expressed the company’s excitement regarding its expansion into Nigeria and the broader African market. This move signifies American Express’s commitment to extending its reach and services to businesses across the continent
Badi said in a statement, “The first-ever American Express Business Card in the most populous African country will give us another way to support local businesses with their growth aspirations. American Express is excited to continue to strengthen its presence in Nigeria and expand its reach across Africa.”
American Express said the partnership aimed to address challenges posed by Nigeria’s persistent dollar scarcity, which had contributed to significant volatility of the naira.
Since foreign exchange reforms in mid-2023, the naira has lost 65 percent of its value against the U.S. dollar.
The Central Bank of Nigeria (CBN) encourages banks to source dollars independently to alleviate demand pressures, yet accessing dollars remains difficult. Consequently, most Nigerian banks have limited or halted the use of naira-denominated credit cards for international transactions, offering such services primarily to affluent clients.
O3 Capital CEO, Abimbola Pinheiro, highlighted the advantages of the new card, stating, “The O3 Amex card solves the problem of queuing at banks for business travel allowance and personal travel allowance.”
Nume Ekeghe
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