While the Nigerian apex bank claims that these policies are intended to help the local currency gain against the US Dollar, not much has been done to cushion the effects of the payment restrictions.
By Michael Akuchie
In December 2023, I needed to upgrade my character in PlayersUnknown’s Battlegrounds (PUBG), a popular survival battle royale game available on mobile and PC platforms. To do this, I needed in-game currency also known as Unknown Cash or “UC”. Although I had some money in my bank account that could be converted into virtual currency, my payment failed to go through.
I raised this issue in the community for Nigerian gamers I belonged to on Facebook only to meet several responses that also bemoaned their inability to purchase skins and weapons in Call of Duty: Mobile (CODM) using Call of Duty Points (CP). Eventually, I discovered that it was because our Naira debit cards were restricted from performing international transactions.
This is not an isolated issue as many Nigerians have been hit hard by the Central Bank of Nigeria’s (CBN) stringent monetary guidelines. In 2022, the CBN limited international transactions to $20 monthly. So while you could pay for items on foreign stores, you had to stay within the $20 limit if you wanted to use a Naira debit card. For Nigerians who frequently order from online stores such as Amazon and AliExpress, a virtual Dollar card became a necessity.
While the Nigerian apex bank claims that these policies are intended to help the local currency gain against the US Dollar, not much has been done to cushion the effects of the payment restrictions. Sadly, the problem has only worsened with time. On several occasions, I have tried to pay for a course on Entry Level, an online course learning platform, and X Premium (formerly known as Twitter Blue), but the payment attempts were declined.
Just as mobile Nigerian gamers are unable to purchase weapons, skins, and other accessories to enhance their experience, console gamers also find it difficult to purchase gift cards directly for the platforms they play on (PlayStation, Xbox, Steam, and Nintendo). For those who decide to use virtual Dollar cards, the high conversion rate and transaction fees become major issues.
So while platforms such as Grey and Chipper Cash can provide a virtual Dollar account to perform international transactions, the rates are hardly the same as those of the CBN. This translates to paying more than what you would have paid if a Naira debit card was used. In a country where inflation, food insecurity, and unemployment are at an all-time high, the idea of spending more than what was budgeted for gaming in a month sounds like a misplaced priority.
To help Nigerian gamers navigate the hurdles of performing international transactions with their local cards, platforms such as Carry1st, Cardtonic, and Codashop have emerged in the past few years. Instead of contending with the high conversion rate that comes with using a virtual Dollar card, gamers can purchase the in-game currency of their favorite titles such as PUBG Mobile, Call of Duty Mobile, Free Fire, and Farlight 84 directly from any of these platforms.
Nigerian gamers can also buy gift cards for PlayStation, Xbox, Nintendo, and Steam platforms. For instance, a Carry1st shop user simply needs to click on their preferred item, which then sends them to the payment page.
What’s most exciting is the number of available payment methods for Nigerian gamers. They can choose from bank transfer, Paga wallet, USSD, Opay Wallet, PalmPay, and a few more. The ease of buying in-game accessories is crucial as the more players spend money on a game, the closer the developer gets to making a profit and investing resources in newer projects.
Keen to get more insights into the operation of these online stores, I spoke with one of them, Carry1st. Known as Africa’s leading publisher of mobile games and video content, the company initially focused on the development, publication, and marketing of games. Eventually it realised that the lack of accessible local payment solutions could pose a major challenge to the continent’s gaming industry’s growth. As such, it went on to launch two new products, Pay1st, a proprietary payments integration solution, and the Carry1st shop which was launched in 2022.
When asked to comment on the factors that affect pricing for the Carry1st shop, Guillaume Noé, VP Growth at the platform explained that the Naira foreign exchange rate played a major role. Noé further said: “Given that we purchase our products in USD, we have to adjust the price in Naira based on the FX to ensure we remain profitable.
In other cases, the publisher indicates a price point in Naira and we follow their requirements. It’s the case for CODM, for example, for which local pricing is decided by Activision”. On Carry1st’s presence in Africa, Noé revealed that it currently operated in twelve countries namely: Nigeria, South Africa, Ghana, Egypt, Morocco, Kenya, Tanzania, Uganda, Rwanda, Côte d’Ivoire, Sénégal, Cameroon.
Africa’s gaming industry has steadily grown over the years, and it can only get better. Statista expects the African gaming scene to be worth $12.3 million by the end of 2024. This is good news for game studios, publishers, developers, and consumers. For the latter, the advent of budget-friendly smartphones with the introduction of 5G high-speed internet has encouraged more and more people to play games, particularly competitive titles like PUBGM and CODM. While it is sad that it is becoming difficult to find use cases for Naira debit cards beyond ATM withdrawals and local purchases, Carry1st and the likes are filling a void much to the delight of Nigerian gamers.
Michael Akuchie is a tech journalist with four years of experience covering cybersecurity, AI, automotive trends, and startups. He reads human-angle stories in his spare time. He’s on X (fka Twitter) as @Michael_Akuchie & michael_akuchie on Instagram.
Cover photo credit: Popular Mechanics