“Nigerian Banks Resume International Naira Card Payments”
- Admin
- Jul 5, 2025
- 3 min read
After years of suspension, Nigerian banks have resumed international transactions on Naira-denominated debit cards, marking a major milestone in the country’s foreign exchange (FX) recovery journey. This long-awaited development comes as several banks, including United Bank for Africa (UBA) and Wema Bank, reintroduce the ability for their customers to carry out international purchases and payments using their regular Naira cards.
The Background: Why Were Naira Cards Suspended for International Transactions?
In 2022, many Nigerian banks suspended the use of Naira-denominated debit cards for international transactions due to:
Severe foreign exchange scarcity
Volatility in the Naira-Dollar exchange rate
Inadequate dollar supply to meet increasing demand
As a result, individuals and businesses struggled to:
Pay for international subscriptions (Netflix, Amazon, Spotify, etc.)
Purchase goods from global online retailers
Book hotels, flights, and other services abroad
Many Nigerians were forced to:
Open expensive domiciliary (foreign currency) accounts
Rely on virtual dollar cards from fintechs
Use expensive parallel market channels to meet their dollar needs
What Has Changed?
The decision to resume international transactions is driven by recent positive developments in Nigeria’s FX market:
Improved liquidity in the official FX window
A narrowing gap between official and parallel market exchange rates
An appreciating Naira following policy reforms by the Central Bank of Nigeria (CBN)
Increased diaspora remittances and foreign portfolio inflows
These factors have restored some confidence in the stability of the Naira, allowing banks to cautiously reopen cross-border payment services on Naira cards.
How Does This Affect You?
Benefits for Consumers:
Global Payments Made Easy: You can now use your UBA Naira Mastercard or Wema Naira Mastercard to pay for:
Streaming services like Netflix, Spotify, YouTube
Online shopping on Amazon, AliExpress, eBay
International travel bookings, hotel reservations, and more
No Need for Dollar Accounts: Consumers can avoid the hassle and cost of maintaining a domiciliary account or purchasing expensive virtual cards.
Greater Financial Flexibility: Students, freelancers, business owners, and remote workers who need to pay or receive money internationally have an easier path.
Benefits for Businesses:
Boost for E-Commerce: Online businesses and merchants can attract more Nigerian customers who can now pay with local cards for international transactions.
Support for SMEs & Freelancers: Freelancers and small businesses that rely on global platforms (such as Upwork, Fiverr, or Shopify) can more easily pay for services and subscriptions.
Travel and Tourism Rebound: Travel agencies and airlines may see an uptick in bookings from individuals who can once again transact globally without foreign currency restrictions.
Key Considerations for Cardholders
Factor | What You Should Know |
Transaction Limits | Many banks may still impose daily/monthly dollar spending limits (e.g., $20, $100, $500) to manage FX exposure. |
Exchange Rates | Transactions will be converted from USD to Naira at your bank’s prevailing rate, which may fluctuate. |
Fees & Charges | Some banks may charge additional international transaction fees or currency conversion costs. |
Card Type | International transactions are mostly enabled on Premium or Higher-tier Naira Cards (Gold, Platinum, World cards). |
It is essential for users to confirm with their banks the applicable limits, exchange rates, and fees before proceeding with large international purchases.
Economic Implications: A Positive Signal
The resumption of international transactions on Naira cards reflects growing confidence in Nigeria’s financial stability. Key implications include:
Improved investor sentiment
Enhanced consumer confidence
Increased access to global digital services and knowledge economy
A signal of gradual FX market normalization
However, the sustainability of this progress depends on the CBN’s continued commitment to:
Transparent FX policies
Building FX reserves
Attracting foreign investments
Conclusion: A Welcome Development, But Stay Informed
The ability to use Naira cards for international payments once again is a game-changer for millions of Nigerians. It opens the door to global opportunities, supports economic inclusion, and reflects a more stable monetary environment.
Take Action:
Contact your bank to confirm if your Naira Mastercard or Visa now supports international transactions.
Stay informed about your bank’s exchange rates and transaction fees.
Use this opportunity to grow your digital business, access global knowledge, and connect with international markets.
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