MARKET NEWS

More Nigerian Deposit Money Banks (DMBs) have resumed international usage of Naira cards, setting varying spending limits as the foreign exchange (FX) situation shows signs of improvement.

The banks that have so far reactivated these services include Providus Bank, First Bank of Nigeria, Guaranty Trust Bank (GTBank), United Bank for Africa (UBA), and Wema Bank.

GTBank has announced a quarterly international spending limit of $1,000 for its Naira card users. The breakdown shows that customers can withdraw up to $500 from ATMs abroad and spend up to $1,000 across online platforms and POS channels within a three-month period.

At First Bank, the international usage limit is set at $500 monthly, with defined transaction frequencies across different channels. According to the bank, cardholders can carry out up to 10 cross-border ATM withdrawals per month, with a charge of N5,000 per withdrawal. They can also perform up to 20 transactions monthly each on POS and web platforms at no additional cost.

Providus Bank informed its customers that they can now enjoy an increased international spending limit during the summer, specifically with its Platinum Naira Card, though the bank did not specify the exact ceiling.

Wema Bank has also resumed international transactions on its Naira-denominated debit cards with a monthly spending limit of $500. The bank announced that customers can now use their Wema Mastercard, ALAT Mastercard, and Visa cards for foreign transactions, including online purchases, point-of-sale payments, and ATM withdrawals outside Nigeria. This move is part of ongoing efforts by Nigerian banks to ease access to foreign exchange for customers and restore confidence in cross-border payment capabilities.

The easing of these restrictions marks a reversal from 2022, when Nigerian banks were forced to slash international spending limits on Naira cards from $100 to as low as $20 monthly. That decision was driven by a chronic shortage of dollars and the struggle of manufacturers and other real sector operators to access FX through official channels.

At that time, the official exchange rate stood at N430 per dollar at the Investors and Exporters (I&E) window. As of July 4, 2025, the exchange rate has surged to N1,528.56 per dollar in the Nigerian Foreign Exchange Market (NFEM), highlighting the major shift in Nigeria’s FX landscape.

This recent move by banks follows months of suspended cross-border transactions due to FX volatility and persistent dollar shortages. The resumption of Naira card usage abroad signals a renewed confidence in FX liquidity and a more predictable currency environment.