The resumption of international transactions on naira-denominated debit cards by Nigerian banks marks a significant milestone that indicates restored trust in the nation’s economy after years of stringent limitations brought on by dollar shortages and unstable foreign exchange.
This development is among the clearest indications to yet that Governor Olayemi Cardoso’s reforms at the Central Bank of Nigeria (CBN) are effective.
A noticeable improvement in the nation’s foreign exchange liquidity may be seen in the decision made by a number of prominent institutions, including United Bank for Africa (UBA), FirstBank, Guaranty Trust Bank (GTBank), and Wema Bank, to re-enable international card usage.
After years of inconsistent policies, two different exchange rates, and a lack of dollars in the official market, this is more than just a financial breakthrough; it represents a larger move toward economic normalization.
This is a huge relief for customers, students, tourists, small enterprises, and tech-savvy entrepreneurs who rely on foreign payments for services, subscriptions, purchases, or business tools.
The protracted freeze
Nigerian banks started limiting the usage of naira cards for foreign transactions in 2020.
A significant lack of foreign cash inflows, exacerbated by the global COVID-19 epidemic, oil price shocks, and an increasingly erratic forex management system, prompted the action.
Many banks merely stopped offering dollar access through naira cards as reserves decreased and the CBN found it difficult to fulfill its forex obligations. From Netflix to Amazon, Spotify, Zoom, or Udemy, those who wanted to pay for products and services overseas were compelled to open domiciliary accounts and obtain foreign currency from the erratic and frequently predatory black market.
In the end, some banks stopped all cross-border transactions unless they were financed with real dollar deposits, while others set extremely low spending caps of as little as $20 to $100 per month. Significant suffering resulted from this, particularly for IT workers, international students, frequent travelers, and small and medium-sized businesses involved in international trade.
A pivotal moment
When President Bola Tinubu named Olayemi Cardoso governor of the Central Bank of Nigeria in 2023, things started to change. Addressing the FX market’s dysfunction and reestablishing the legitimacy of Nigeria’s monetary policy framework were among Cardoso’s initial moves.
Cardoso and his staff acted swiftly to minimize distortions by implementing a willing-buyer, willing-seller model, unify the many currency rates that had been plaguing the system, and clear a backlog of more than $7 billion in unmet FX obligations.
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These audacious measures made it clear to the market and investors that Nigeria was committed to macroeconomic stability, budgetary restraint, and transparency.
The drive to draw in dollar inflows from both conventional and unconventional sources was another important step. This included enhancing naira liquidity availability for money transfer companies, strengthening diaspora remittance channels, liberalizing requirements for capital importation, and broadening the scope for International Money Transfer Operators (IMTOs).
Nigeria’s net foreign exchange reserve position improved as a result of these actions, going from $3.99 billion at the end of 2023 to $23.11 billion by the middle of 2025. In the same time frame, gross external reserves also increased, rising from $33.22 billion to $40.19 billion.
Naira cards are reactivated by banks for usage abroad.
Nigerian banks started bringing back cross-border feature for naira debit cards as dollar liquidity improved and the naira gained relative stability in the official window.
A number of significant banks formally announced the relaxation of limitations in May and June of 2025.
“All UBA Premium Naira Cards, including Gold, Platinum, and World variants, are now enabled for international transactions,” UBA informed its clients in a message. This implies that you can easily and conveniently use your card for regular payments, internet shopping, point-of-sale, and ATM transactions anywhere in the world.
With the following announcement, Wema Bank joined: “Your Wema Naira Mastercard just went global! All of your favorite international websites, like Amazon, eBay, AliExpress, Netflix, Spotify, and YouTube, now accept payments in US dollars.
While GTBank restored a quarterly international spend of $1,000 across online and point-of-sale channels, with an ATM withdrawal cap of $500, FirstBank reinstated a $500 monthly international spending limit on its naira Mastercard.
Banks’ confidence in the stability of foreign exchange inflows is reflected in these policy changes, which also show better access to the official market for the settlement of obligations denominated in dollars.
The effects: SMEs, consumers, and the digital economy celebrate
Restoring the use of naira cards for overseas purchases is a win on several levels.
It eliminates the hassle of doing informal naira-to-dollar conversions or depending on friends or family to complete basic internet transactions for customers, particularly digital natives and young professionals. Customers can now use their own cards to immediately access services like Spotify, Netflix, YouTube Premium, and Amazon.
The modification lowers overhead expenses and simplifies payments for digital advertising platforms, SaaS tools, and subscriptions for independent contractors, tech professionals, and content producers.
“I run an online design business and I rely on Adobe Creative Cloud, Canva Pro, and domain hosting,” stated Temitope Adedayo, an entrepreneur based in Lagos. I’ve had to use third-party agents or ask my cousin in another country to help pay for the past three years. It is a great relief that I can now simply use my GTB naira card.
The restored card capability is also advantageous to small and medium-sized businesses (SMEs), particularly those who import raw materials, make reservations, or handle international logistics.
Strengthening of the Forex market
The fundamental cause of these changes is a more robust FX market structure.
Nigeria’s monthly foreign exchange inflows increased to $5.96 billion in May 2025, a 62 percent rise from the previous month, according to experts at Financial Derivatives Company Limited. They credited the increase to the CBN’s more accommodating foreign exchange policies and growing oil earnings.
By implementing stricter monetary policies, deterring speculative demand, and lowering arbitrage incentives, the apex bank has also kept the exchange rate steady.
Agusto & Co.’s Head of Financial Institutions Ratings, Ayokunle Olubunmi, stated:
The banks’ decision to reinstate foreign expenditure can be attributed to the lowering premium between the official and parallel markets as well as diminished arbitrage opportunities. It indicates that the foreign exchange market is recovering.
CBN’s dedication to change
Olayemi Cardoso, the governor of the CBN, is unquestionably still dedicated to sustainability and long-term change.
He recently stated: “Our mission is to restore confidence and transparency,” in reference to Nigeria’s macroeconomic outlook. Hard, intentional work has led to the benefits we’re witnessing in the foreign currency market, including increased reserves, reopened card usage, and improved access for enterprises. We’ll continue on this course.
The CBN has stated plans to introduce an electronic forex matching system, which will increase transparency, price discovery, and accountability in the forex industry and further boost market efficiency.
Additionally, the top bank has pledged to implement policies that put investor confidence and stability first, manage reserves prudently, and determine currency rates based on market forces.
Obstacles to come
Experts caution that although the return of foreign naira card use is a significant victory, Nigeria must continue to exercise caution to prevent reverting to previous practices.
“This progress is encouraging, but sustainability depends on continued inflows, transparency, and responsible fiscal management,” stated Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise. The benefits could be undone by any shock, whether it comes from low oil prices, debt repayment, or a lack of cooperation in policy.
To maintain good external balances, it is also necessary to increase non-oil foreign exchange revenues, enhance tax collection, and guarantee fiscal discipline.
Increasing stability and access to finance
In the future, the CBN wants to further liberalize the foreign exchange market, improve digital payments, and expand financial inclusion.
The improvements were commended by Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON), who also advocated for greater coordination between government departments.
“We must make sure that retail users — travelers, students, and SMEs — can access forex in a structured, predictable, and affordable manner,” he added, adding that the forex market is becoming more investor-friendly.
In addition, Gwadabe emphasized the value of diaspora remittances, which generate roughly $23 billion a year, and advocated for more creative products to draw inflows via official channels.
An emblem of normalcy in the economy
It’s important to remember that reactivating Naira debit cards for use abroad is more than just a banking trend. It is a potent representation of increased FX liquidity, better monetary coordination, and reestablished market trust.
For millions of Nigerians, it stands for ease, accessibility, and the ability to engage in a global economy. For the overall economy, it is evidence that Nigeria can create a more resilient and inclusive financial future with sensible reforms, transparency, and discipline.
“The resumption of naira card international use is an encouraging sign that Nigeria is on the right path — and that with sustained reform, more wins lie ahead,” Cyril Ampka, an economist, stated, although the path to full economic stability is far from over.
