Improved foreign exchange liquidity in Nigeria, driven by sweeping economic reforms, is reshaping how Nigerians use their naira cards for international payments. Deposit Money Banks are now raising spending limits on naira-denominated debit cards as dollar availability strengthens across the financial system, marking a major shift in global payment access for customers.
The development follows the Central Bank of Nigeria (CBN) reforms under Governor Olayemi Cardoso, which helped clear a $7bn foreign exchange backlog and boosted FX inflows to about $112bn by the end of 2025. Increased inflows from foreign investments, non-oil exports, and autonomous sources have improved dollar supply and restored confidence in the financial system.
Before the reforms began in 2023, Nigerians faced severe dollar shortages that limited international transactions and pushed many toward the parallel market. Businesses and travellers struggled with restricted access to foreign currency, deepening pressure on the naira.
To reverse this, the CBN introduced liberalisation policies, stopped deficit financing, and implemented measures to attract foreign capital. These actions improved investor sentiment, supported Nigeria’s return to international capital markets, and contributed to credit rating upgrades.
With improved liquidity, banks have begun lifting restrictions on naira cards used for global transactions.
Guaranty Trust Bank (GTBank) recently increased its quarterly spending limit on naira cards to $20,000, a sharp jump from previous caps of $1,000 for online and POS payments and $500 for ATM withdrawals abroad.
Other major banks, including United Bank for Africa (UBA), FirstBank, and Wema Bank, have also restored or expanded international payment access, allowing customers to shop, subscribe, and transact globally with naira cards once again.
UBA confirmed that premium cardholders can now make international transactions seamlessly, while FirstBank and Wema Bank also reactivated global payment features across their Mastercard and Visa platforms.
Financial analysts say the policy shift reflects improving fundamentals in Nigeria’s foreign exchange market. According to Agusto & Co, reduced parallel market premiums and lower arbitrage opportunities have contributed to banks reopening international card usage.
Economist Bismarck Rewane attributed the improved FX inflows to stronger oil earnings and diversified inflow channels introduced by the CBN, including improved diaspora remittances and licensed international money transfer operators.
Experts also note that broader reforms—including subsidy removal, bank recapitalisation, and tax restructuring—are strengthening Nigeria’s long-term economic outlook and improving fiscal stability.
However, analysts stress that sustained coordination between monetary and fiscal authorities remains critical. The CBN maintains that ongoing reforms aim to anchor inflation, stabilise prices, and support a transition toward an inflation-targeting framework.
With reserves improving, investor confidence rising, and FX liquidity strengthening, Nigeria’s financial system is gradually reopening global access for millions of naira card users—signaling one of the most visible benefits of the country’s ongoing economic reforms.
source: punch