Nigerian banks have officially resumed international transactions on naira-denominated ATM and debit cards, nearly three years after the service was suspended due to foreign exchange shortages.
Banks such as United Bank for Africa (UBA), Wema Bank, and Guaranty Trust Bank (GTBank) have reinstated the service, allowing customers to use their naira cards for purchases and withdrawals abroad.
In separate customer notifications, the banks confirmed that users can now make international payments using their naira cards on global websites and at foreign Point-of-Sale (PoS) terminals and ATMs. GTBank, for instance, has set a quarterly international spending limit of $1,000, including $500 for ATM withdrawals.
Background
The suspension of international card usage in 2022 was prompted by Nigeria’s severe foreign exchange crisis, which made it difficult for banks to settle international card transactions. During the period, customers relied heavily on domiciliary accounts or virtual dollar cards for cross-border payments.
The decision to lift the restriction comes amid ongoing foreign exchange reforms and improved dollar liquidity in the financial system.
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Market Reaction
Analysts have welcomed the move, describing it as a sign of increased confidence in Nigeria’s foreign exchange market. The Central Bank’s efforts to unify exchange rates, boost remittances, and stabilise the naira are seen as contributing factors.
Small businesses and frequent travellers, in particular, are expected to benefit from the policy shift, as it simplifies access to international goods and services without the need for alternative foreign currency solutions.
What to Expect
While some banks have already resumed the service, others are expected to follow suit in the coming weeks. Customers are advised to check with their banks for specific limits and applicable fees.
