…Set spending caps
A number of Nigerian Deposit Cash Banks (DMBs) have restored using naira playing cards for abroad transactions, setting various spending limits because the international change (FX) state of affairs reveals indicators of enchancment.
The banks which have to this point reactivated these companies embrace: Providus Financial institution, First Financial institution of Nigeria, Warranty Belief Financial institution (GTBank), United Financial institution for Africa (UBA), and Wema Financial institution.
GTBank has introduced a quarterly worldwide spending restrict of $1,000 for its Naira card customers. The breakdown reveals that clients can withdraw as much as $500 from ATMs overseas and spend as much as $1,000 throughout on-line platforms and POS channels inside a three-month interval.
At First Financial institution, the worldwide utilization restrict is ready at $500 month-to-month, with outlined transaction frequencies throughout completely different channels. Based on the financial institution, cardholders can perform as much as 10 cross-border ATM withdrawals monthly, with a cost of N5,000 per withdrawal. They will additionally carry out as much as 20 transactions month-to-month every on POS and internet platforms at no extra price.
Providus Financial institution knowledgeable its clients that they will now take pleasure in an elevated worldwide spending restrict throughout the summer time, particularly with its Platinum Naira Card, although the financial institution didn’t specify the precise ceiling.
Learn additionally: Banks resume international transactions on naira cards as FX liquidity improves
Wema Financial institution has additionally resumed worldwide transactions on its naira-denominated debit playing cards with a month-to-month spending restrict of $500. The financial institution introduced that clients can now use their Wema Mastercard, ALAT Mastercard, and Visa playing cards for international transactions, together with on-line purchases, point-of-sale funds, and ATM withdrawals outdoors Nigeria. This transfer is a part of ongoing efforts by Nigerian banks to ease entry to international change for patrons and restore confidence in cross-border cost capabilities.
The benefit of financial institution restrictions overseas marks a reversal from 2022, when Nigerian banks have been compelled to slash worldwide spending limits on naira playing cards from $100 to as little as $20 month-to-month.
That call was pushed by a power scarcity of {dollars} and the wrestle of producers and different actual sector operators to entry FX by means of official channels.
At the moment, the official change charge stood at N430 per greenback on the Buyers and Exporters (I&E) window. As of July 4, 2025, the change charge stood at N1,528.56 per greenback within the Nigerian International Alternate Market (NFEM), highlighting the most important shift in Nigeria’s FX panorama.
This current transfer by banks follows months of suspended cross-border transactions because of FX volatility and chronic greenback shortages. The resumption of naira card utilization overseas alerts a renewed confidence in FX liquidity and a extra predictable forex setting, analysts say.
Analysts view the event as a big increase to client and investor sentiment. It gives much-needed reduction to clients who use naira playing cards for companies comparable to on-line subscriptions, journey, and procuring on international platforms.
‘Aligns with IMF advice’
Razia Khan, managing director and chief economist for Africa and the Center East at Commonplace Chartered Financial institution, famous that this step aligns with coverage suggestions from the Worldwide Financial Fund (IMF). She mentioned, “It was one of many measures steered within the newest Article IV session. The concept is that with a floating change charge regime, Nigeria now not wants to keep up sure capital management measures.”
‘Proof of naira stability’
Echoing that view, Ayodeji Ebo, an funding skilled and managing director/chief enterprise officer at Optimus by Afrinvest, described the event as proof that present FX reforms are working.
“This additional reinforces that the present international change administration technique is yielding optimistic outcomes, as evidenced by the improved liquidity within the official market,” he mentioned. “Additionally it is serving to to ease strain on the parallel market, with demand step by step shifting again to the official window, thereby narrowing the hole between the 2 charges. It is a optimistic growth for the economic system.”
He added that the current appreciation of the naira prior to now few weeks has added to market optimism. “This transfer provides to the rising confidence that the forex might stay comparatively secure within the short- to medium-term, which is encouraging for companies and traders alike.”
Learn additionally: Naira closes week strong as banks reinstate overseas card transactions
Previous hurdles
The restrictions on worldwide transactions utilizing Naira playing cards severely disrupted Nigerians’ means to entry important international items and companies. From January 2023, some banks suspended or capped utilization, first lowering limits to as little as $20/month, then halting all cross-border spending with naira playing cards. This choked people and companies alike: college students struggled to pay for visa charges, professionals noticed area and internet hosting renewals fail, and content material subscriptions like Microsoft 365, Apple Music, and Netflix turned inaccessible.
E-commerce startups and small companies confronted increased prices and inefficient workarounds, turning to costly parallel market FX and fintech alternate options, all whereas limiting development and deterring international funding.
The bounds additionally fuelled Nigeria’s parallel (black) FX market and fintech sector. Many Nigerians turned to dollar-denominated digital playing cards or domiciliary accounts, typically funded at inflated black‑market charges, typically double official charges, driving additional strain on the naira.
Increased prices for peculiar shoppers, disrupted enterprise operations, and a everlasting shift towards unofficial change channels all undermined confidence in formal banking and stability within the FX market.
Muda Yusuf, chief government officer of the Centre for the Promotion of Personal Enterprise (CPPE), attributed the current resumption of worldwide transactions with Naira playing cards by Nigerian banks to improved liquidity and stability within the international change (FX) market.
Based on him, these developments have restored confidence within the system, each for monetary establishments and their clients.
“What has occurred is that the liquidity within the FX market has improved. The change charge has been extra secure, and this has elevated the extent of confidence of the banks in opening up transactions,” Yusuf defined. “For them, it’s an excellent enterprise as a result of the extra these transactions happen, the higher for them. And for the customers, it gives a number of comfort for his or her transactions.”
He emphasised the sensible advantages for Nigerians, particularly those that journey overseas. “As a Nigerian who’s travelling overseas, you don’t must be carrying {dollars} in your pocket or in your bag. Generally, folks have been embarrassed due to that. So, along with your naira card, you are able to do no matter transactions you need,” he mentioned.
“For Nigerians which can be overseas, if they’ve Naira accounts right here, you’ll be able to pay into their naira accounts they usually do their greenback transactions. I believe it gives a number of comfort.”
