Nigerian Banks Resume International Naira Card Transactions Amid FX Market Confidence
After nearly three years of suspension, Nigerian banks have reactivated international transactions on their naira-denominated debit cards.
This significant reversal reflects growing confidence in Nigeria’s foreign exchange market, the impact of monetary policy reforms, and renewed activity by Nigerian banks and bank cards in facilitating cross-border transactions.
In a separate communique to customers this week, both banks confirmed the resumption of international use of their naira Mastercard and Visa cards, a move that could provide relief to millions of Nigerians who rely on these cards for global payments, subscriptions, and online purchases.
United Bank for Africa (UBA) chaired by Tony Elumelu, announced that its premium naira cards, including Gold, Platinum, and World variants, can now be used internationally across ATMs, PoS machines, and online platforms.
“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 and world variants are now enabled for international transactions,” the statement reads
“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.” UBA added.
The bank’s move is particularly notable given its extensive customer base across Africa and the diaspora. Industry analysts say the reactivation of naira cards signals a return of trust in the FX system and a softening of restrictions once deemed necessary to manage volatility.
Wema Bank also confirmed the resumption of international access for its naira Mastercard, Visa, and ALAT cards. The bank told customers:
“Your Wema Naira Mastercard just went global! Now you can pay in dollars on all your favourite international platforms; Amazon, eBay, AliExpress, Netflix, Spotify, YouTube.”
Financial experts attribute this policy shift to improved FX liquidity, narrowing arbitrage margins, and recent CBN reforms.
Charles Sanni, CEO of Cowry Treasurers, supports this view, noting that the appreciation of the naira, reduced interest in FX speculation, and increased diaspora remittances have all contributed to improved FX conditions.
“The spread between official and parallel market rates has thinned out, may have influenced the decision by the banks”
“The naira has also continued to appreciate against the other major currencies of the world. More so, there has been increased diaspora remittances based on the new policy of the Central Bank of Nigeria (CBN) on opening of accounts for non-residents, particularly Nigerians in diaspora,” Sanni added.
He cited additional drivers such as improved Nigeria credit ratings, clearing of FX backlogs, geopolitical oil price boosts, and the recapitalisation of Nigerian banks.
Between July 2022 and January 2023, major Nigerian banks, including GTBank, Zenith Bank, First Bank, and Standard Chartered, suspended international transactions on naira cards due to a severe FX crisis.
At the time, banks such as GTBank informed customers that their naira Mastercards would no longer work for foreign online or PoS transactions, encouraging them to instead open dollar accounts. First Bank made a similar move in September 2022, stating:
“Due to current market realities on foreign exchange, you will no longer be able to use the Naira Mastercard, Naira Credit Card, our Virtual card, and Visa Prepaid Naira card for international transactions.”
Fintech platforms such as Flutterwave and Eversend reportedly suspended virtual cards during the peak of the crisis.
For Nigerian consumers and SMEs reliant on digital services, this reopening represents a major relief. From global e-commerce to digital subscriptions and cross-border education payments, international card access had become a pain point during the restrictions.
With UBA and Wema Bank leading the way in restoring access, pressure may now mount on other banks to follow suit, especially if FX conditions continue to improve under current policy direction.
