Commercial banks across Nigeria have lifted restrictions placed on naira-denominated debit cards for international transactions, ending three years of suspension placed on the mode of financial services for customers inside the country.
Some of the banks that have lifted restrictions on the mode of transaction were the United Bank for Africa (UBA) and Wema Bank.
Both financial institutions confirmed that their naira debit cardholders can now carry out payments and withdrawals in foreign currencies on international platforms.
UBA announced that holders of its Premium Naira Cards, including Gold, Platinum, and World variants, can now use their cards globally for online purchases, ATM withdrawals, and point-of-sale (POS) transactions. Similarly, Wema Bank revealed that its Naira Mastercard can now be used to pay in dollars for subscriptions and purchases on platforms like Amazon, Netflix, YouTube, Spotify, and more.
The move is seen as a response to improvements in Nigeria’s foreign exchange (FX) market. Analysts point to a stronger naira, increased liquidity, narrowed exchange rate gaps, and rising diaspora remittances as factors that have reduced pressure on the financial system.
“The reopening of international transactions on naira cards shows that the FX market is becoming more stable,” said Ayokunle Olubunmi, a financial analyst at Agusto & Co. “It’s an encouraging sign that may lead to more positive developments in the economy.”
Between mid-2022 and early 2023, several major banks, including GTBank, Zenith Bank, and First Bank, suspended dollar transactions on naira cards due to acute forex shortages and market volatility. Customers were forced to rely on domiciliary accounts or prepaid dollar cards for international payments.
The Head of Strategy at Cowry Treasurers Limited, Charles Sanni, noted that policy interventions by the Central Bank of Nigeria (CBN), including clearing forex backlogs and restoring investor confidence, have contributed to the current stability in the system.
The announcement has excited customers and businesses, describing the development as one that would reduce dependence on alternative payment solutions that often come with higher costs or complications.
Financial experts argued that more banks are likely to follow suit in the coming months if FX conditions continue to improve. However, transaction limits and card usage caps may still be applied, depending on market dynamics and CBN regulations.
