By Muyiwa Ojo
Big news! Nigerian banks have reignited international transactions on naira cards, signaling a bold step forward for the nation’s economy. While skeptics grumbled that Nigeria’s financial recovery was a mirage and hunger still loomed, the facts speak louder—reforms are not just working, they’re thriving, unlocking seamless global spending for millions.
Let’s go down the memory lane.
When Nigerian Banks Suspended International Card Transactions:
The suspension of international transactions on naira-denominated cards issued by Nigerian banks began gradually around 2020 and intensified between July 2022 and January 2023.
Key milestones include:
March 2022: Many banks, including United Bank for Africa (UBA), Zenith Bank, Sterling Bank, and Union Bank, reduced the monthly international spending limit on naira cards from $100 to $20, following directives from the Central Bank of Nigeria (CBN). This was an initial response to foreign exchange (FX) scarcity.
July 2022: Standard Chartered Bank announced the suspension of international transactions on its naira visa debit cards, effective August 1, 2022.
September 2022: First Bank of Nigeria suspended international transactions on its naira Mastercard, naira credit cards, virtual cards, and visa prepaid naira cards, effective September 30, 2022.
December 2022: Guaranty Trust Bank (GTBank) halted international transactions on its naira Mastercard, effective December 31, 2022.
January 2023: Zenith Bank joined other banks, suspending international ATM withdrawals, web transactions, and Point of Sale (POS) transactions with naira cards, effective January 9, 2023.
Other banks, such as Access Bank, Ecobank, and fintech platforms like Flutterwave and Eversend, also suspended or restricted international transactions during this period due to similar constraints.
By late 2022 and early 2023, most Nigerian banks had completely barred naira-denominated cards from being used for international online and POS transactions, limiting customers to dollar-denominated cards or alternative payment methods.
Why the Suspension Occurred:
The primary reason for the suspension was chronic foreign exchange (FX) scarcity in Nigeria, driven by several economic factors:
1. Foreign Exchange Shortages: Nigeria faced a severe shortage of foreign currency, particularly U.S. dollars, due to a decline in foreign exchange reserves. This was exacerbated by lower oil production (Nigeria’s main export) despite high global oil prices, reducing foreign currency inflows.
2. Central Bank of Nigeria (CBN) Policies: The CBN implemented strict capital control measures to conserve dollar reserves and manage foreign exchange demand. These included:
– Limiting FX sales to commercial banks, which reduced their ability to settle international transactions.
– Imposing a $50,000 annual forex limit for individuals and sanctioning defaulters to curb excessive foreign spending.
– Restricting access to the interbank currency market for certain imports, pushing banks to ration available FX.
3. Economic Pressures: The naira’s depreciation and rising exchange rates increased the cost of settling international transactions in dollars. Banks faced challenges covering dollar liabilities for naira card transactions, leading to suspensions to mitigate financial risks.
4. CBN’s Focus on Money Laundering and FX Management: The CBN expressed concerns about the “indiscriminate and suspicious” use of naira debit cards for international spending, aiming to reduce capital outflows and combat money laundering. This prompted directives to banks to limit or suspend such transactions.
5. Impact on Banks and Fintechs: Banks, acting as intermediaries, relied on the CBN for FX supply. When the CBN reduced allocations, banks could not fund international transactions, leading to suspensions. Fintech platforms like Flutterwave and Eversend also halted virtual card services due to similar constraints.
Impact on Nigerians:
– The suspension prevented Nigerians from using naira cards for online purchases on international platforms (e.g., Amazon, Netflix, AliExpress) and for POS or ATM transactions abroad.
– Customers were forced to use dollar-denominated cards (e.g., Visa Debit Multicurrency Card or Visa Gold Credit Card) or open domiciliary accounts, which were often difficult to fund due to FX scarcity.
– The restrictions fueled reliance trips to the black market for FX, increasing costs for manufacturers and consumers, which contributed to inflation.
Resumption of International Transactions:
As of July 2025, banks like UBA and Wema Bank have resumed international transactions on naira cards, citing improved FX liquidity, increased diaspora remittances, and CBN reforms, such as the unification of forex market segments in June 2023. Some banks, like Wema, introduced a $500 monthly limit on international spending.
Note: The information is based on available web sources and posts on X, reflecting the situation up to July 6, 2025.
Always verify with primary sources like official bank or CBN announcements for the latest updates, as economic conditions can change rapidly.
Thank you PBAT for your courageous and bold decision to reform our MONETARY policy.
God bless CBN
God Bless Nigeria.
Muyiwa Ojo writes from Lagos.
