Naira Debit Card Use Abroad Restored by Nigerian Banks After Three-year Pause

Nigerian banks have resumed international transactions on naira-denominated debit cards after a suspension of over three years caused by severe dollar shortages.

This move follows foreign exchange reforms under President Bola Tinubu, including the removal of currency controls in June 2023, which improved dollar availability in Nigeria’s economy.

Major banks like Guaranty Trust Bank (GTBank), United Bank for Africa (UBA), Stanbic IBTC, First Bank, and Wema Bank have reinstated international usage of naira cards with spending limits ranging from $500 to $1,000 per quarter.

Customers can now use these cards for online shopping, point-of-sale payments abroad, and ATM withdrawals overseas, subject to these limits and foreign currency availability.

The naira has remained stable this year, supported by improved forex reserves and inflows.

Background

For nearly three years, Nigerian banks suspended international transactions on naira debit cards due to acute dollar shortages and foreign exchange market pressures.

This forced many Nigerians to rely on alternative methods such as virtual dollar cards, domiciliary accounts, or third-party fintech platforms for international payments.

In June 2023, President Bola Tinubu’s administration scrapped currency controls, which led to increased dollar inflows and improved foreign exchange liquidity.

As a result, Nigerian banks have regained confidence in the forex market, enabling them to restore international card services.

Bank Announcements and Limits

GTBank customers now have a $1,000 quarterly limit on international transactions using their naira debit cards. This covers ATM withdrawals, online purchases, and POS payments abroad. ATM withdrawals abroad are capped at $500 per quarter.

UBA premium naira cards (Gold, Platinum, World variants) are re-enabled for international use with similar transaction capabilities across ATMs, POS, and online platforms.

Wema Bank confirmed that its Naira Mastercard, Visa, and ALAT cards can now be used globally with a monthly limit of $500.

Stanbic IBTC and First Bank also set limits of around $500 per month for international transactions on naira debit cards.