American Express Co. has made its inaugural foray into Nigeria’s business credit card market, partnering with local neobank O3 Capital to introduce a groundbreaking financial solution. Unveiled in Lagos, the commercial hub of Nigeria, the collaboration seeks to enhance accessibility to dollars for businesses in the West African nation.
The newly launched card, which debuted on Thursday, offers businesses a spending limit of $10,000 and a repayment window of up to 45 days for international transactions. Complementing this offering, other O3 Capital-Amex cards cater to personal and household needs, boasting spending limits ranging from $10,000 to $20,000.
Expressing enthusiasm about this strategic move, Mohammed Badi, President of Global Network Services at American Express, emphasized the company’s commitment to supporting local businesses. He stated, “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.”
This initiative comes in response to the challenges posed by Nigeria’s ongoing dollar scarcity, which has led to significant fluctuations in the local currency, the naira. Since the mid-2023 foreign exchange reforms, the naira has experienced a 65% depreciation against the U.S. dollar.
In efforts to alleviate demand pressures, the Central Bank of Nigeria (CBN) has urged banks to independently source dollars. However, access to dollars remains a hurdle, leading most Nigerian banks to restrict or suspend the use of naira-denominated credit cards for international transactions, primarily catering to affluent clientele.
Abimbola Pinheiro, CEO of O3 Capital, underscored the benefits of the new card, highlighting its role in streamlining processes. Pinheiro stated, “The O3 Amex card solves the problem of queuing at banks for business travel allowance and personal travel allowance.”
Looking ahead, O3 Capital aims to issue 16,000 American Express cards by the end of 2024 and expand its reach to approximately one million cards within the next five years. The company also plans to extend its services to other African markets, including Rwanda, Congo, and Ghana, with expectations to introduce Amex cards by the close of 2025.
In line with these ambitions, Badi revealed American Express’s intentions to broaden its presence in Africa from 30 to 42 countries, citing heightened demand from consumers and small businesses for its cards.
Credit: Leadership
