Nigerian Banks Lift 3-Year Ban, Resume Global Transactions on Naira Cards

After almost three years of suspension, international transactions on naira-denominated debit cards have been resumed by some Nigerian banks, a significant shift in the country's banking landscape. This follows the improvement in Nigeria's foreign exchange (FX) liquidity and the regain of confidence in monetary policy reforms of the country.

Major banks such as Guaranty Trust Bank (GTBank), United Bank for Africa (UBA), and Wema Bank have announced the restoration of global payment facilities on their naira cards. Customers can now make payments online, withdraw money from ATMs, and use POS payments on international websites such as Amazon, Netflix, Spotify, and eBay.

UBA confirmed that its Premium Naira Cards like Gold, Platinum, and World variants are now empowered for international use. Wema Bank also took the step, stating that its Mastercard and ALAT card now accept dollar payments on the global stage. GTBank set a quarterly spending limit of $1,000 for overseas expenditure, and $500 is allocated for ATM withdrawals.

The 2022-suspended FX repatriation was driven by ongoing FX shortages and economic instability. The return is attributed to a stronger naira, reduced arbitrage incentives, and increased diaspora remittances. The recent Central Bank of Nigeria reforms, including improved FX management and capital repatriation regimes, have also played a part.

The move will loosen financial constraints for Nigerians and regain access to international digital services.