Barely three years after restricted usage, Nigerian banks have reinstated the ability for citizens to use naira-denominated debit cards for international transactions.
A policy shift that signals renewed confidence in the nation’s foreign exchange market and a pivotal moment for the country’s digital economy.
Recall that Nigerian banks last week resumed international usage of naira debit cards, setting various spending limits as foreign exchange (FX) conditions improve, driven largely by the reforms of the Central Bank of Nigeria (CBN).
The move signals a significant milestone in expanding Nigeria’s payment frontiers and restoring confidence in the financial system.
In recent years, the CBN has implemented difficult but necessary reforms to address longstanding obstacles to price and exchange rate stability. These reforms are beginning to yield positive results, reflected in rising FX reserves, increased access to foreign exchange through official channels, easing inflation, and now, the return of naira card usability for international transactions.
Leading banks such as GTBank, UBA, Stanbic IBTC, Wema Bank, and FirstBank have confirmed the resumption of card-based cross-border payments.
This change allows Nigerians to make purchases on international websites, pay for foreign services, and withdraw cash abroad, all from their naira accounts.
The suspension, initially enforced due to a severe dollar shortage and exchange rate instability, had long hindered businesses and individuals from accessing global services.
Now, with improved FX liquidity and rising external reserves, the Central Bank of Nigeria (CBN) appears confident that the financial system can support this easing.
Banks have placed varying spending limits to manage risk and forex exposure.
GTBank, for instance, has capped international spending at $1,000 per quarter, including a $500 ATM withdrawal limit.
UBA, Wema, and others are offering similar limits, mostly tied to premium account tiers.
An industry expert, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf had attributed the recent resumption of international transactions with Naira cards by Nigerian banks to improved liquidity and stability in the foreign exchange (FX) market. According to him, these developments have restored confidence in the system, both for financial institutions and their customers.
“What has happened is that the liquidity in the FX market has improved, the exchange rate has been more stable, and this has elevated the level of confidence of the banks in opening up transactions,” Yusuf explained. “For them, it’s a good business because the more these transactions take place, the better for them. And for the users, it provides a lot of convenience for their transactions.”
He emphasised the practical benefits for Nigerians, especially those who travel abroad. “Imagine as a Nigerian who’s travelling abroad, you don’t need to be carrying dollars in your pocket or in your bag. Sometimes people have been embarrassed because of that. So with your Naira card, you can do whatever transactions you want,” he said.
Yusuf also pointed out how the development eases cross-border support for Nigerians living outside the country. “For Nigerians that are abroad, if they have Naira accounts here, you can pay into their Naira accounts and they do their dollar transactions. I think it provides a lot of convenience.”
For many analysts, Nigeria’s potential remains immense, but the success of these reforms depends on continued collaboration between monetary and fiscal authorities.
Previously, one of the biggest challenges facing Nigeria’s economy was the limited availability of FX through official channels. This constraint forced businesses and travelers to rely heavily on the parallel market, creating arbitrage opportunities that fueled speculative activity.
According to Ayokunle Olubunmi, head of Financial Institutions Ratings at Agusto & Co, the improved FX liquidity supported banks’ decision to reactivate naira cards for global transactions. “The moderating premium on the parallel market and reduced arbitrage opportunities also influenced the decision,” he said.
By enabling international naira card usage, banks are facilitating seamless payments for travelers and online shoppers, including hotel bookings and international subscriptions.
More FX channels strengthen inflows
Foreign capital remains crucial to Nigeria’s economic recovery. The CBN is actively cultivating more FX sources to enhance liquidity, access, and confidence across sectors.
Efforts to boost diaspora remittances estimated at $23 billion annually have been prioritised, alongside licensing new IMTOs and expanding the FX access pipeline through reforms.
Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON), praised the CBN’s creative policy direction. “It reflects the level of innovation and commitment the Cardoso-led team has invested in ensuring forex flows into the economy and remains accessible,” he said.
What it means for SMEs
The biggest beneficiaries may be Nigeria’s growing SME sector, which accounts for over 80% of employment in the country.
Small businesses can now purchase digital tools like web hosting, SaaS products, or advertising services (Google, Meta) seamlessly.
Expand e-commerce operations with direct payments for drop shipping, logistics, and sourcing.
For many entrepreneurs, this reform marks the return of flexibility and freedom. Halima Adeyemi, who runs a beauty product line in Abuja, says she can now restock ingredients from suppliers in the U.S. and South Korea without needing a friend abroad to help.
“This makes life easier. I can focus on growing my business instead of figuring out how to pay someone overseas,” she says.
The policy shift also opens up new growth paths for Nigeria’s financial sector, which had been losing ground to fintechs and crypto-based alternatives during the years of restrictions.
Banks can now earn new revenue from international transaction fees, card processing, and forex margins.
Expand premium card offerings with differentiated limits and benefits.
Launch or scale multi-currency payment solutions as competition intensifies.
Fintech players are also expected to build on this new infrastructure by offering smarter budgeting tools, AI-powered FX rate alerts, and cross-border business banking services.
Moreover, the resumption strengthens confidence in Nigeria’s ongoing financial reforms. Recent improvements in FX liquidity helped by an increase in foreign portfolio inflows, diaspora remittances, and clearer exchange rate policies have bolstered reserves and reduced the gap between official and parallel market rates.
While the move has been largely welcomed, analysts warn that its sustainability depends on continued FX market stability. As dollar demand rises with increased card usage, the CBN and commercial banks will need to monitor inflows carefully and ensure the limits remain within sustainable thresholds.
Cybersecurity, fraud prevention, and regulatory compliance will also be crucial as card usage crosses borders and exposes banks to more complex risk environments.
Conclusion
This policy marks more than a return to convenience, it represents a strategic step forward in integrating Nigeria into the global economy. For a country teeming with entrepreneurial energy and digital potential, enabling global transactions with local tools is a foundational move toward long-term economic transformation.
As Nigeria positions itself as Africa’s financial and innovation hub, the ability for its people to transact globally, seamlessly and safely could become one of its most powerful assets.
