As dollar liquidity increases, commercial banks in Nigeria have relaxed the three-year prohibition on use of naira-funded debit cards overseas.
The restoration of foreign transactions on their naira debit cards has been announced by United Bank for Africa (UBA) Plc, a Tier-1 bank, and Wema Bank Plc, a mid-tier bank.
UBA and Wema Bank informed clients separately that the service had resumed for their naira cards.
The change occurred roughly three years after numerous banks stopped allowing foreign purchases on naira debit cards due to a decline in dollar liquidity, which compelled many local lenders to limit local card transactions overseas.
Transactions were however, allowed for dollar-funded cards, usually linked to cardholders’ domiciliary accounts.
A recent analysis of FX inflows in the last few months have shown that Nigeria attracted $5.96 billion monthly inflows from May 2025 till date.
According to an industry report, Nigeria’s foreign exchange market saw a notable uptick in May, with total inflows increasing by 62.0% month-over-month (M-o-M) to $5.96 billion, mostly due to a rise in both domestic and foreign investor activity.
In light of macroeconomic reforms and a comparatively stable naira, this was one of the strongest inflow levels in recent months and indicates rising market sentiment.
In a note sent to investors via email, analysts at Financial Derivatives Company Limited credited the Central Bank of Nigeria’s creation of several inflow channels and the spike in oil prices for the increase in foreign exchange inflows.
In order to stimulate dollar inflows, improve dollar access for manufacturing and retail end users, and aid in the recovery of the naira in all markets, the Central Bank of Nigeria (CBN) has activated a number of foreign exchange sources in recent months.
The apex bank has also made dollar-inflow channels easier for authorised dealers and other value chain participants by implementing a willing buyer-willing seller FX model, granting licenses to new International Money Transfer Operators (IMTOs), improving diaspora remittances through new product development, and facilitating IMTOs’ timely access to naira liquidity.
The UBA noted in a customer notification that the restart is consistent with its ongoing dedication to giving consumers smooth and improved banking experiences.
“In line with our continued commitment to providing you with seamless and enhanced banking experiences, we are pleased to inform you that all UBA Premium Naira Cards, including Gold, Platinum, and World variants are now enabled for international transactions,” the bank said.
“This means you can now use your Premium Naira Card for everyday payments, online shopping, POS, and ATM transactions across the world, with more ease and flexibility.
“If you haven’t used your card recently, now’s a great time to rediscover the convenience and prestige that comes with being a UBA premium cardholder,” it added.
Similarly, announcing the development in a recent statement, Wema Bank said customers can now “pay in dollars” with their naira cards.
Ayokunle Olubunmi, head of financial institutions ratings at Agusto & Co., stated in a report that banks’ decision to revive their naira cards for international transactions was encouraged by the increased liquidity in the foreign exchange (FX) market.
Records revealed that numerous banks, including GTBank, Stanbic IBTC Bank, United Bank for Africa, Access Bank, Standard Chartered Bank Nigeria, and others, had occasionally suspended transactions on naira cards unless they were connected to dollar-funded domiciliary accounts and at other times reviewed the international spending limit on such cards.
Following this move, Experts stated that by permitting travellers to use their naira-cards overseas, banks are facilitating the payment of hotel bills, bookings, and other debit card activities.
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