Nigerian banks raise naira card spending limits as FX liquidity improves

Nigerian banks are increasing international spending limits on naira debit cards as foreign exchange liquidity improves. The move follows Central Bank of Nigeria (CBN) reforms that have boosted dollar availability in the banking sector.

Stronger diaspora remittances and higher foreign investments are driving the recovery. Banks including GTBank, UBA, Wema Bank, and First Bank have restored or expanded international transaction services on naira cards.

Reversal of years of restrictions

For much of the past three years, Nigerians travelling abroad, studying overseas, or shopping online struggled to access foreign exchange through official channels. Banks imposed strict limits on international card transactions as dollar supplies dwindled. Many customers turned to the parallel market at higher rates.

The situation has improved considerably in recent months. Increased portfolio investments, diaspora remittances, non-oil export earnings, and renewed investor confidence have strengthened foreign exchange inflows. This has eased pressure on the banking sector’s dollar reserves.

CBN reforms drive change

Much of the improvement is linked to reforms introduced by CBN Governor Olayemi Cardoso. When his leadership took office in October 2023, the economy faced acute FX shortages, exchange-rate distortions, and weak investor confidence.

The apex bank implemented measures to improve transparency and attract foreign capital. It cleared more than $7 billion in outstanding FX obligations. It also introduced policies to channel more foreign currency through official routes. These include support for diaspora remittances, licensing of additional International Money Transfer Operators (IMTOs), and adoption of a willing-buyer willing-seller framework.

Banks restore and raise limits

Guaranty Trust Bank (GTBank) recently raised the quarterly international spending limit on its naira cards to $20,000. It assured customers of reliable access to dollar funding for online and Point of Sale transactions.

United Bank for Africa (UBA) reactivated international transaction capabilities on its premium naira cards, including Gold, Platinum, and World variants. Customers can now make online payments, withdraw cash from ATMs, and complete purchases abroad.

Wema Bank restored international payment functionality on its naira Mastercard. Customers can now transact on global platforms such as Amazon, Netflix, Spotify, YouTube, and eBay.

FirstBank resumed international spending on its naira Mastercard within approved limits. It also expanded premium offerings through a partnership with Visa, introducing the Visa Signature card for high-net-worth customers and frequent international travellers.

What this means for Nigerians

The return of international spending on naira cards is expected to ease transactions for Nigerians travelling for business, education, healthcare, and tourism. It also improves access to global digital services and e-commerce platforms. The development signals growing stability in Nigeria’s foreign exchange market and broader confidence in the country’s economic recovery.