FX reforms boost global naira card usage

Nigerian banks are significantly increasing international spending limits on naira cards, a move driven by improved foreign exchange liquidity resulting from recent economic reforms. This development signals renewed confidence in the Nigerian economy and facilitates easier access to global payment systems for cardholders.

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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 and online transactions.

The Central Bank of Nigeria, under Olayemi Cardoso, has cleared a substantial $7 billion foreign exchange backlog. This action, along with other financial sector reforms, has led to a notable rise in foreign exchange inflows, reaching $112 billion by the end of 2025. These inflows, comprising autonomous foreign exchange, foreign portfolio investments, and non-oil export proceeds, are bolstering the economy and enabling local banks to expand international transaction capabilities.

Before these reforms, Nigeria faced acute foreign exchange scarcity, forcing businesses and travelers to rely on the parallel market and fueling speculative activities. The Cardoso-led CBN's initial steps in late 2023 included liberalizing the foreign exchange market and ending central bank financing of fiscal deficits. These measures have successfully improved investor confidence, facilitated Nigeria's return to the international capital market, and contributed to positive rating upgrades.

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Before the Olayemi Cardoso-led management team assumed office at the Central Bank of Nigeria in October 2023, one of the most significant challenges confronting the economy was acute foreign exchange scarcity.

Reflecting the improved dollar liquidity, Nigerian banks are now removing restrictions on naira-funded debit cards for international transactions, which had been in place for over three years. Guaranty Trust Bank, for instance, has raised its quarterly dollar spending limit on naira cards to $20,000, a significant increase from its previous $1,000 limit for online and POS transactions. Other prominent banks, including United Bank for Africa, FirstBank, and Wema Bank, have also resumed international services on their naira debit cards.

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These steps helped improve investor confidence, enabled Nigeria’s return to the international capital market last December and contributed to rating upgrades from international agencies.