American Express Co. has introduced its inaugural business credit card in Nigeria following a partnership with local neobank O3 Capital.
It was gathered that collaboration between American Express and O3 Capital has the potential to enhance dollar accessibility for businesses in Nigeria.
The new card unveiled in Lagos, provides businesses with a spending limit of $10,000 and allows a repayment period of up to 45 days for international transactions.
Additionally, other O3 Capital-Amex cards, designed for personal and household use, will feature spending limits ranging from $10,000 to $20,000.
Mohammed Badi, President of Global Network Services at American Express, expressed the company’s excitement about expanding its presence in Nigeria and across Africa.
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 collaboration aims to address the challenges stemming from Nigeria’s persistent dollar scarcity, which has contributed to significant fluctuations in the local currency, the naira.
Despite the Central Bank of Nigeria’s (CBN) encouragement for banks to independently source dollars to alleviate demand pressures, accessing dollars remains challenging.
Consequently, most Nigerian banks have restricted or suspended the use of naira-denominated credit cards for international transactions, primarily catering to affluent clients.
Abimbola Pinheiro, CEO of O3 Capital, emphasized the benefits of the new card, saying “The O3 Amex card solves the problem of queuing at banks for business travel allowance and personal travel allowance.”
O3 Capital aims to issue 16,000 American Express cards by the end of 2024 and expand its reach to approximately one million cards over the next five years.
The company also plans to extend its services to other African markets, including Rwanda, Congo, and Ghana, where it anticipates introducing Amex cards by the end of 2025.
Badi disclosed American Express’s intention to widen its presence in Africa from 30 to 42 countries, citing growing demand from consumers and small businesses for its cards.