1.1      Background to the Study

The international withdrawal limits imposed on Naira Mastercard transactions have significant implications for the Nigerian economy. As a country heavily reliant on imports and foreign transactions, any restrictions on accessing foreign currency can directly impact economic activities, trade, and investment. Naira Mastercard, issued by Nigerian banks, has been a crucial tool for individuals and businesses to conduct international transactions, making it a focal point for analyzing the broader economic ramifications of such limitations.

The imposition of international withdrawal limits on Naira Mastercard transactions influences Nigeria's foreign exchange reserves. These reserves are essential for stabilizing the value of the Naira, facilitating international trade, and meeting external obligations. With restricted access to foreign currency through Naira Mastercard transactions, there could be increased pressure on the country's foreign reserves, potentially leading to a decline in its value and affecting macroeconomic stability (Ogbonna, 2020).

The limitations on Naira Mastercard withdrawals constrain Nigerian businesses and individuals engaged in international trade and investment. Small and medium-sized enterprises (SMEs), in particular, rely on such transactions for importing raw materials, purchasing equipment, and accessing global markets. Any impediments to these transactions could hinder the growth and competitiveness of Nigerian businesses on the international stage, limiting economic expansion and job creation (Uche, 2019).

The impact of Naira Mastercard international withdrawal limits extends to consumer spending and overall economic growth. With restricted access to foreign currency, individuals may face challenges in making international payments for goods and services, travel, and education expenses abroad. This limitation could dampen consumer confidence, reduce spending, and hinder economic growth prospects (Ogbeidi et al., 2018). Additionally, it may deter foreign investors who rely on ease of transactions and repatriation of funds, thus affecting capital inflows and investment levels in the Nigerian economy.

Addressing the implications of Naira Mastercard international withdrawal limits requires a multifaceted approach from policymakers. Strategies aimed at diversifying the economy, boosting local production, and improving the efficiency of foreign exchange management systems are crucial. Moreover, enhancing financial inclusion and promoting alternative payment solutions can mitigate the adverse effects of these restrictions while fostering economic resilience (CBN Annual Report, 2021). As Nigeria navigates these challenges, policymakers must strike a balance between managing capital outflows and promoting economic growth to ensure the country's long-term prosperity.Top of FormBottom of Form

1.2      Statement of the Problem

The impact of Naira MasterCard international withdrawal limits on the Nigerian economy presents a multifaceted challenge with implications for both consumers and the broader economic landscape. The imposition of withdrawal limits on Naira MasterCards significantly constrains the ability of Nigerian citizens and businesses to engage in international transactions, hindering trade, investment, and access to essential goods and services from abroad. This restriction exacerbates existing economic vulnerabilities, limiting the capacity for businesses to expand globally and stifling opportunities for individuals to participate in the international marketplace. As highlighted in a report by the Central Bank of Nigeria (CBN), the imposition of stringent withdrawal limits not only hampers economic growth but also undermines confidence in the local currency, potentially leading to currency devaluation and inflationary pressures (CBN, 2021).

Furthermore, the impact of Naira MasterCard international withdrawal limits extends beyond economic ramifications to encompass broader socio-economic consequences. The inability to freely access foreign currency through Naira MasterCards not only impedes personal travel and education opportunities but also limits remittance inflows, which serve as a crucial source of income for many Nigerian households. Research conducted by Ajayi, O., & Ogbu, C. (2020) underscores the significance of remittances in poverty alleviation and household welfare enhancement. Therefore, the imposition of restrictive withdrawal limits on Naira MasterCards not only curtails economic activity but also undermines the socio-economic well-being of Nigerian citizens, necessitating a comprehensive review of existing policies to mitigate adverse effects and foster sustainable economic development.Top of Form

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1.3 Objectives of the Study

The main objective of the study is to examine Impact of Naira Master Card international withdrawal limits on the economy of Nigeria. Specific objectives of the study are:

  1. 1.  To analyze the impact of the limits on foreign exchange availability.
  2. 2.  To assess the impact of the limits on specific economic sectors.
  3. To evaluate the potential long-term effects of the limits on the Nigerian economy.

1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

  1. How have Naira Mastercard international withdrawal limits affected the official and unofficial foreign exchange markets in Nigeria?
  2. How have the Naira Mastercard limits impacted sectors reliant on international transactions, such as online businesses and travellers?
  3. Could the Naira Mastercard limits discourage foreign investment or international business partnerships in Nigeria?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: There is no statistical significant relationship between Naira Master Card international withdrawal limits and the economy of Nigeria.  

1.6 Significance of the Study

The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:

Firstly, the paper will benefit major stakeholders and policy makers in the banking sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.

Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.

Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.

1.7 Scope of the Study

The study is delimited to selected web hosting companies in Lagos. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.

1.8 Limitations of the Study

The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.

1.9 Organization of the Study

The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.

Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.

Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.

Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.

Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.


Ogbonna, C. (2020). Impact of Foreign Exchange Reserves on Nigerian Economy. Journal of Economics and Sustainable Development, 11(8), 38-44.

Uche, O. (2019). International Business Environment and Economic Growth in Nigeria: A Causality Analysis. International Journal of Business and Management, 14(8), 54-65.

Ogbeidi, M. M., Akpomughe, O. V., & Eragbhe, E. (2018). Exchange Rate Variability and Nigerian Economic Growth: An Empirical Investigation. International Journal of Economics and Financial Issues, 8(5), 232-238.

Central Bank of Nigeria (CBN) Annual Report (2021). Retrieved from