Market News

Commercial banks are expanding limits on card transactions abroad following consistent rise in dollar liquidity and surge in gross external reserves to $52.6 billion.

 The external reserves position as at August 19th, according to the Central Bank of Nigeria (CBN) data, provides buffer against shocks and eases dollar settlement pressure on international transactions. 

Already, Guaranty Trust Bank Plc has raised its quarterly international spending from $20,000 to $40,000.

In emailed note to customers, GTBank said: “The FX rate for International Payments on your GTBank Naira Card at N1,355/$1. FX rates are subject to change in line with prevailing market conditions. The quarterly spending limit on your Naira Card is $40,000”.

 The move represents improvement from the $6,000 limit imposed in November 2025 and significant jump from the $1,000 ceiling in July last year.

Access Bank, United Bank for Africa, Stanbic IBTC Wema Bank, allow below $5,000 montly limit for offshore card transactions on Point of Sale (POS) and online transactions.

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

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

Group Executive, eBusiness & Retail Products, FirstBank, Chuma Ezirim, said: “At FirstBank, we are dedicated to creating financial solutions that reflect the evolving lifestyles of our customers.

The increase in spending limits offers immediate relief to Nigerian households, students, and businesses long squeezed by crippling dollar shortages.

Under updated CBN FX guidelines, the maximum tuition fee remittance for students abroad was also increased to $25,000 per semester from $15,000.

The shift follows sustained policy interventions aimed at deepening the FX market.

Central Bank Governor Olayemi Cardoso noted at an industry forum in Lagos that market forces now dictate trading outcomes rather than routine central bank bailouts. 

Cardoso said net FX reserves have rebounded to more than $40 billion from just over $3 billion at the start of the reform program, with gross reserves hitting roughly $52 billion.

Former Registrar, Chartered Institute of Bankers of Nigeria (CIBN), Dr. Uju Ogibunka, said  the surge in card spending limits reflects the improvement in liquidity and rising confidence in Nigeria’s foreign exchange market for domestic and foreign investors.

“It shows that the liquidity in the foreign exchange market has improved significantly and we can see that from the stability of the exchange rate. We can also see that reflected in our foreign reserves. All of these things reflect the level of confidence,” he said.

According to him, businesses and individuals are no longer under pressure to obtain FX, although they might complain abaout rate.

To ensure more people benefit from dollar liquidity surge, the new CBN’s foreign exchange manual, Fourth Edition, raised the maximum tuition fee remittance for Nigerian students pursuing undergraduate and postgraduate studies abroad to $25,000 per semester, from the previous $15,000. 

“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the manual states.

The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.

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.