Nigerian Banks Resume Naira Debit Card Use for International Transactions

Strategic Insights -

The Nigerian banking sector has restored the use of naira debit cards for international transactions and online payments, a significant milestone in the country's foreign exchange recovery following a three-year suspension. This development comes as the country experiences improved dollar availability, driven by key economic reforms under President Bola Tinubu's administration. The suspension of international transactions on naira debit cards began in early 2022 due to acute dollar shortages. The banks' decision to resume these services is a positive indication of the country's economic recovery and foreign exchange market reform efforts.

Key Takeaways:

  • GT Bank has reinstated naira debit card use for international transactions, subject to a quarterly limit of $1,000 for all forms of foreign spending, including ATM cash withdrawals, e-commerce purchases, and POS payments.
  • Stanbic IBTC Bank has set a monthly spending limit of $500 on naira credit cards for overseas transactions.
  • First Bank of Nigeria and Wema Bank have also reinstated international use of their naira debit cards with a monthly ceiling of $500.
  • The restoration of international card services coincides with a period of relative naira stability, with the currency trading at approximately 1,528 naira to the US dollar as of Monday.
  • Nigeria's foreign reserves reached $39 billion in May 2025, a marked improvement from previous years.
  • Foreign exchange inflows surged to $28.92 billion in the first quarter of 2025, supported by increased crude oil exports and foreign portfolio investments.
  • The resumption of naira debit card usage is expected to benefit millions of Nigerians who rely on digital platforms for various transactions, reducing dependence on costly and sometimes risky foreign currency alternatives.
  • The move is seen as a positive signal of Nigeria's ongoing economic recovery and foreign exchange market reform efforts.

Statistics:

  • Quarterly spending limit on naira debit card for international transactions: $1,000 (GT Bank)
  • Monthly spending limit on naira credit card for overseas transactions: $500 (Stanbic IBTC Bank)
  • Monthly ceiling for international use of naira debit cards: $500 (First Bank of Nigeria, Wema Bank)
  • Current exchange rate: approximately 1,528 naira to the US dollar
  • Nigeria's foreign reserves: $39 billion (May 2025)
  • Foreign exchange inflows: $28.92 billion (first quarter of 2025)
  • Peak US dollar value: N1,200 ($2.50) (pre-pandemic peak)

Sources:

  • "Nigeria's economy improves under Tinubu as dollars come." (Source: Exact date not provided, online publication - refer to the source for the exact date and reference)
  • "Nigeria's foreign reserves reach $39 billion in May 2025." (Source: Central Bank of Nigeria, no date provided)
  • "Nigeria's foreign exchange inflows surge to $28.92 billion in Q1 2025." (Source: Central Bank of Nigeria, no date provided)
  • "GT Bank announces naira debit card limits for international transactions." (Source: GT Bank, no date provided)
  • "Stanbic IBTC Bank introduces limits on naira credit card usage for overseas transactions." (Source: Stanbic IBTC Bank, no date provided)
  • "First Bank of Nigeria and Wema Bank update on naira debit card usage." (Source: First Bank of Nigeria and Wema Bank, no date provided)