Nigerian Banks Restore Naira Debit Card Use for International Transactions

 

After a three-year suspension, Nigerian banks have resumed allowing customers to use naira debit cards for international payments and online transactions. The move follows increased dollar availability in the country, credited to economic reforms introduced by President Bola Tinubu. In June 2023, Tinubu eliminated currency controls, which has significantly boosted the inflow of foreign exchange into Nigeria's economy. One of Nigeria’s largest financial institutions, GT Bank, announced that customers can now use their naira debit cards internationally with a spending limit of $1,000 per quarter. This includes ATM withdrawals, online purchases, and point-of-sale transactions outside the country. Other banks such as Stanbic IBTC, First Bank, and Wema Bank also reinstated international usage of naira debit cards, setting their limits at $500 monthly. The resumption of these services indicates a growing confidence in the stability of Nigeria’s foreign exchange market. As of Monday, the naira was trading at approximately 1,528 to the US dollar, according to data from the London Stock Exchange Group. Analysts attribute the relative stability of the naira to strengthened foreign reserves, which reached $39 billion in May, and a surge in foreign exchange inflows that hit $28.92 billion in the first quarter of 2025. The Central Bank of Nigeria has supported this shift by implementing policies aimed at unifying exchange rates and attracting more dollar inflows. The improved access to foreign exchange is seen as a positive development for Nigerians who shop online, pay for services abroad, or travel internationally, and also for businesses engaging in cross-border transactions. This policy reversal represents a notable shift in Nigeria’s financial strategy and is expected to stimulate greater economic activity and investor confidence.