Market News

BY Oluwatomisin Amokeoja, Journalist

Nigerian banks have reactivated naira-denominated debit cards for international transactions, signaling growing confidence in the country’s foreign exchange market after years of crippling dollar shortages. The move comes amid ongoing economic reforms under President Bola Tinubu aimed at stabilizing the currency and increasing dollar liquidity.

KEY FACTS 

Nigerian financial institutions began suspending the use of naira cards for international payments in 2020, amid acute dollar scarcity. 

Banks have now reinstated the service with revised limits, typically $1,000 per quarter or $500 monthly on naira debit or credit cards. 

This change follows a series of monetary reforms, including the June 2023 removal of currency controls, which allowed market forces to set the exchange rate. 

BRANDVOICE

The naira has traded steadily around N1,528 to the U.S. dollar in recent weeks, according to London Stock Exchange Group plc (LSEG) data. 

Nigeria’s foreign reserves rose to around $39 billion in May 2025, while foreign exchange inflows hit $28.92 billion in Q1 2025, according to Central Bank of Nigeria (CBN) data. 

BIG NUMBERS 

$50,000–$150,000 

— the annual card transaction limits available to Nigerians a decade ago. The new limit of $4,000 annually is less than 1/10th of the minimum threshold from 2015. 

CRUCIAL QUOTE 

“For me, it affected my online academic payment by sourcing for dollars to fund my domiciliary account. This move is more political than governance. How come the Apex bank is now reviewing some policies that have dragged the economy backwards in terms of digital transactions?” — Mustapha Shuaib, a Nigerian backend engineer. 

BACKGROUND 

The Central Bank of Nigeria imposed strict capital controls in the mid-2010s to protect dwindling reserves, triggering a decade of restricted access to foreign currency for online purchases, tuition payments, and international subscriptions. The resulting dependency on domiciliary accounts and fintech workarounds drove up costs and stifled digital engagement for many Nigerians. 

A generation that once enjoyed seamless cross-border transactions found itself increasingly shut out of the global digital economy, including platforms like Amazon, Adobe, Spotify, and academic services, unless they could source physical dollars or use third-party cards. 

SOCIAL REACTION 

The news has sparked mixed reactions across social platforms. One user on X (formerly Twitter) recalled struggling to renew his premium subscription until discovering his naira card now worked for dollar payments. 

“It was one of the smoothest and fastest transactions I’ve had in a while,” he wrote. 

But for others, the celebration felt muted. “Imagine in 2025 being happy that your bank allows $4,000 annual spend, when in 2015, I had a $50k limit,” one user noted. 

WHAT TO WATCH FOR 

• Will the CBN relax foreign exchange restrictions any further or increase limits on naira cards. 

• Potential moves by fintech startups to integrate naira cards into global payment systems. 

• How long the naira can remain stable amid persistent inflationary pressures and global market shifts. 

TANGENT 

The broader shift could spark renewed momentum in Nigeria’s digital economy, particularly for freelancers, students, and businesses that are dependent on global tools and services. It also positions traditional banks to reclaim market share lost to fintech players who thrived during the restrictions.