Market News

Deposit Money Banks (DMBs) are raising the limit naira cardholders can spend abroad following rising dollar liquidity in the financial system.

The Central Bank of Nigeria (CBN’s) decision to clear over $7 billion unsettled FX backlogs raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion. Nearly three years after the backlog clearance, FX inflows into the economy rose significantly, closing 2025 at $112 billion.

Market analysts said rising autonomous inflows, including diaspora remittances, foreign portfolio investment, non-oil export proceeds show are supporting dollar liquidity, which local banks are leveraging on to expand dollar spending limits.

Guaranty Trust Bank (GTB) yesterday raised quarterly dollar spending limit on naira cards to $20,000 to enable cardholders have greater dollar spending power when traveling abroad.

In emailed note to customers titled: “Important Update on Your GTBank Naira Card” the bank said cardholders can now spend up to $20,000 quarterly.

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 “The Dollar Limit on your GTBank Naira Card is now $20,000 quarterly. The funds are reliably available on Point of Sale (POS) and online transactions”.

The bank had earlier pegged its quarterly transaction limits across different channels at $1,000 for online and PoS transactions while ATM transactions are limited to $500.

Also, two other Tier-1 banks and a mid-tier bank, United Bank for Africa (UBA) Plc and FirstBank and Wema Bank Plc respectively, are also allowing international transactions on naira debit cards for their customers.

Thus, in earlier notice to customers, UBA said the resumption aligns with its continued commitment to providing clients with seamless and enhanced 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.

Also in a recent statement, Wema Bank said customers can now “pay in dollars” with their naira cards. “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,” the bank said.

Similarly, in an emailed note to its customers, FirstBank said its Naira Mastercard can now be used for international transactions. “Shop online or spend up to $500 every month on your preferred channel seamlessly,” the bank said.

To making offshore transactions easier for its customers, FirstBank in partnership with Visa, inaugurated Visa Signature, a premium card offering designed for Nigeria’s affluent segment.

Visa Signature targets Nigeria’s top executives, business owners, and frequent international travelers who expect more from their financial products.

Commenting on FirstBank’s ambition for its premium cardholders, Chuma Ezirim, Group Executive, eBusiness & Retail Products, FirstBank, said: “At FirstBank, we are dedicated to creating financial solutions that reflect the evolving lifestyles of our customers.

Highlighting the strategic importance of the FirstBank partnership, Andrew Uaboi, Vice President and Cluster Head, West Africa, Visa, noted: “Nigeria’s affluent consumers are among the most active and globally connected spenders on the continent. Visa Signature is designed to serve that profile with the depth of benefits and the breadth of acceptance they deserve. We are delighted to work with FirstBank in making this available to the Nigerian market.”

Head of financial institutions ratings at Agusto & Co, Ayokunle Olubunmi, said the improved liquidity in the FX market supported banks’ decision to reactivate their naira cards for global transactions. “The moderating premium on the parallel market transactions and the reduced arbitrage opportunities is also responsible for the decision,” he said.

Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, attributed rising FX inflows to a surge in oil prices and multiple inflow channels created by the CBN.

He said the apex bank also activated multiple FX sources to increase dollar inflows, boost dollar access to manufacturers and retail end users and support naira recovery across markets.

From measures to improve diaspora remittances through new product development, the granting of licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller FX model, and enabling timely access to naira liquidity for IMTOs, the CBN has simplified dollar inflow channels for authorized dealers and other players in the value chain.