Improved foreign exchange liquidity driven by economic reforms is prompting Nigerian banks to expand international spending limits on naira cards, signalling renewed confidence in the economy and easing access to global payments, ARINZE NWAFOR writes
- +FX reforms boost global naira card usage
Deposit Money Banks are increasing the amount naira cardholders can spend abroad as dollar liquidity strengthens across the financial system.
Deposit Money Banks are increasing the amount naira cardholders can spend abroad as dollar liquidity strengthens across the financial system. Following financial sector reforms and the clearance of a $7bn foreign exchange backlog by the Olayemi Cardoso-led Central Bank of Nigeria, foreign exchange inflows into the economy continued to rise, reaching $112bn by the end of 2025.
The increase in autonomous foreign exchange inflows, foreign portfolio investments and non-oil export proceeds is enabling local banks to raise international spending limits on naira cards while also supporting foreign direct investment into the domestic economy.
Before the Olayemi Cardoso-led management team assumed office at the Central Bank of Nigeria in October 2023, one of the most significant challenges confronting the economy was acute foreign exchange scarcity. As a result, businesses and travellers were forced to rely heavily on the parallel market to obtain foreign currency, a development that encouraged speculative activities in the foreign exchange market.
To address the challenge, one of the first major actions taken by the Cardoso-led CBN in 2023 was the introduction of a series of reforms aimed at attracting foreign capital, restoring exchange rate stability and strengthening price stability.
Among the measures implemented, the apex bank liberalised the foreign exchange market and ended central bank financing of fiscal deficits. These steps helped improve investor confidence, enabled Nigeria’s return to the international capital market last December and contributed to rating upgrades from international agencies. The reforms have also significantly strengthened the country’s foreign exchange reserves and improved liquidity in the FX market.
Reflecting improved dollar liquidity, Nigerian banks have begun removing the more than three-year restriction on the use of naira-funded debit cards for international transactions. Guaranty Trust Bank recently increased the quarterly dollar spending limit on its naira cards to $20,000, giving customers greater flexibility when making payments abroad.
In an email to customers titled “Important Update on Your GTBank Naira Card,” the bank announced that cardholders can now spend up to $20,000 every quarter. The Dollar Limit on your GTBank Naira Card is now $20,000 quarterly. The funds are reliably available on Point of Sale and online transactions.”
The bank had previously maintained quarterly limits of $1,000 for online and POS transactions, while ATM withdrawals were restricted to $500.
Other lenders, including United Bank for Africa Plc, FirstBank and Wema Bank Plc, have also resumed international transaction services on naira debit cards. In a notice to customers, UBA stated that the development aligns with its commitment to delivering improved banking experiences.
“In line with our continued commitment to providing you with seamless and enhanced banking experiences, we are pleased to inform you that all UBA Premium Naira Cards, including Gold, Platinum, and World variants, are now enabled for international transactions,” the bank said.
“This means you can now use your Premium Naira Card for everyday payments, online shopping, POS, and ATM transactions across the world, with more ease and flexibility. If you haven’t used your card recently, now’s a great time to rediscover the convenience and prestige that comes with being a UBA premium cardholder.”
Wema Bank also recently informed customers that they can now make dollar-denominated payments using their naira cards. “Your Wema Naira Mastercard just went global! Now you can pay in dollars on all your favourite international platforms: Amazon, eBay, AliExpress? Netflix, Spotify, YouTube,” the bank said.
Likewise, FirstBank notified customers through an email that its Naira Mastercard is once again available for international transactions. “Shop online or spend up to $500 every month on your preferred channel seamlessly,” the bank said.
To simplify offshore transactions for customers, FirstBank, in partnership with Visa, launched Visa Signature, a premium card product designed for Nigeria’s affluent market segment. Visa Signature is targeted at top executives, business owners and frequent international travellers who demand enhanced value from their financial products.
Commenting on FirstBank’s objective for premium cardholders, Group Executive, eBusiness & Retail Products, FirstBank, Chuma Ezirim, said, “At FirstBank, we are dedicated to creating financial solutions that reflect the evolving lifestyles of our customers.”
Highlighting the strategic significance of the partnership, Vice President and Cluster Head, West Africa, Visa, Andrew Uaboi, said, “Nigeria’s affluent consumers are among the most active and globally connected spenders on the continent. Visa Signature is designed to serve that profile with the depth of benefits and the breadth of acceptance they deserve. We are delighted to work with FirstBank in making this available to the Nigerian market.”
The Head of Financial Institutions Ratings at Agusto & Co, Ayokunle Olubunmi, attributed banks’ decisions to reactivate naira cards for international transactions to improved liquidity in the foreign exchange market. “The moderating premium on the parallel market transactions and the reduced arbitrage opportunities are also responsible for the decision,” he said.
Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, linked the increase in foreign exchange inflows to stronger oil prices and the multiple inflow channels established by the CBN.
According to him, the apex bank created several avenues for foreign exchange inflows to boost dollar availability, improve access for manufacturers and retail users, and support the recovery of the naira across various markets.
Through measures aimed at improving diaspora remittances, introducing new financial products, licensing additional International Money Transfer Operators, implementing a willing buyer-willing seller foreign exchange model and facilitating timely access to naira liquidity for IMTOs, the CBN has simplified dollar inflow channels for authorised dealers and other participants in the value chain.
Founder and Chief Consultant of B. Adedipe Associates Limited, Prof Abiodun Adedipe, identified several policy reforms that are yielding positive outcomes for the economy.
